Submitted to: Ms.

Surbhi

Submitted by: Sakshi Chakervarty and Richa tiwari BBM Sem III Sec B

Introduction

The term Operation Research refers to the application of scientific analysis to the decision making process. For example: problems arising in military planning,industrial management,economic analysis and the formulation of public policy.

Definition given by famous scholars

O.R. is a scientific method of providing executive departments with a quantitative basis for decisions regarding the operations under their control.-Morse & Kimble O.R. is the systematic application of quantitative methods, techniques and tools to the analysis of problems involving the operation of systems.-Daellenback and George

Characteristics of O.R.

Inter-disciplinary team approach: According to this characteristic O.R. is done by a team of scientists drawn from various disciplines such as mathematics,statistics,economics,engineerin g,physics etc. Use of models: In operation research, various models are constructed for solving a problem.

Systems approach: Operation research is a system oriented. it is based on the observation that in the organized systems the behavior of any part also effects the other part. Helpful in locating the optimal solution: it attempts to locate the best or optimal solution of the problem.

Scientific method: O.R. employs scientific methods for the purpose of solving complex problems and achieving optimal results. Based on optimization theory: O.R. tries to optimize a well defined function subject to given constraints.

Techniques of O.R.

Linear programming Game theory Waiting line or queuing theory Simplex method Inventory system Theory of probability Decision theory

Applications of O.R.

Invaluable in business Invaluable in industries Essential in planning Universal utility In the transport sector In banks

Limitations of O.R.

Practical operation: O.R. provides solution only when all the elements related to a problem can be quantified. Costly operation: O.R. techniques are usually very expensive as they require services of specialized person and computers. Reliability of the proposed solution: Sometimes a non-linear relationship is changed to linear for fitting the problem to L.P. pattern.

The inherent limitations concerning mathematical expression: O.R. techniques are based on the use of mathematical models, equations and similar other expressions. Combining two or more objective function: The use of single objective function is often an insufficient basis for decision making.

Internal resistance: The implementation of an optimal decision may also face internal hindrances such as trade unions or individual managers etc.