Discuss the application area of operation research
Answers
Answer:
1. “Operation research is a scientific method of providing executive departments with a quantities basis for decisions regarding the operations under their control”.
2. “Operation research is concerned with scientifically deciding how best to design and operate man machine systems usually under conditions requiring the allocation of & care resources”. O.R. Society of America
3. “Operation research is a scientific approach to problem solving for executive management”. H.M. Warner
4. “O.R is the application of scientific method by interdisciplinary teams to problems involving the control of organized (men-machines) systems so as to provide solution which best serve the purpose of the organisation as a whole”.
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5. “Operation research is an aid for the executive in making his decisions by providing him with the needed quantitative information based on the scientific method of analysis”.
6. “O.R in the most general sense can be characterized as the application of scientific methods techniques and tools to problems involving the operations of systems so as provide those in control of the operation with optimum solution to the problems”.
Applications of Operation Research:
O.R. is a problem solving and decision taking technique. It is considered a kit of scientific and programmable rules which provides the management a “quantitative basis” for decisions concerning the operation under its control.
Some areas of management where O.R techniques have been successfully utilized are as follow:
1. Allocation and Distribution in Projects:
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(i) Optimal allocation of resources such as men materials machines, time and money to projects.
(ii) Determination and deployment of proper workforce.
(iii) Project scheduling, monitoring and control.
2. Production and Facilities Planning:
(i) Factory size and location decision.
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(ii) Estimation of number of facilities required.
(iii) Preparation of forecasts for the various inventory items and computation of economic order quantities and reorder levels.
(iv) Scheduling and sequencing of production runs by proper allocation of machines.
(v) Transportation loading and unloading,
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(vi) Warehouse location decision.
(vii) Maintenance policy decisions.
3. Programmes Decisions:
(i) What, when and how to purchase to minimize procurement cost.
(ii) Bidding and replacement policies.
4. Marketing:
(i) Advertising budget allocation.
(ii) Product introduction timing.
(iii) Selection of advertising media.
(iv) Selection of product mix.
(v) Customer’s preference of size, colour and packaging of various products.
5. Organization Behaviour:
(i) Selection of personnel, determination of retirement age and skills.
(ii) Recruitment policies and assignment of jobs.
(iii) Recruitment of employees.
(iv) Scheduling of training programs.
6. Finance:
(i) Capital requirements, cash flow analysis.
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(ii) Credit policies, credit risks etc.
(iii) Investment decision.
(iv) Profit plan for the company.
7. Research and Development:
(i) Product introduction planning.
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(ii) Control of R&D projects.
(iii) Determination of areas for research and development.
(iv) Selection of projects and preparation of their budgets.
(v) Reliability and control of development projects thus it may be concluded that operation research can be widely utilized in management decisions and can also be used as corrective measure.
Methodology of Operation Research:
Quantitative basis for decision making is provided to managers by O.R. it enhances a manager’s ability to make long range plans and to solve the routine problems of running a enterprise/concern OR is a systematic and logical approach to provide a rational footing for taking decisions. Operation research, like scientific research is based on scientific methodology which involves following steps.
1. Formulating the Problem:
OR is a research into the operation of a man machine organisation and must consider the economics of the operation in formulating a problem for O.R. study analysis must be made of the following major components:
(i) The environment.
(ii) The objectives.
(iii) The decision maker.
(iv) The alternative courses of action and constraints out of the above four component, environment is most comprehensive as it provides a setting for the remaining three. The operation researcher shall attend conferences, pay visits, send observation and perform research work thus succeeds in getting sufficient date to formulate the problems.
2. Constructing a Model to Represent the System under Study:
Once the project is approved by the management, the next step is to construct a model for the system under study. The operation researcher can now construct the model to show the relations and interrelations between a cause and effect or between an action and a reaction.
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