Why Operations Research?
Introduction
Origin of operations research
Definition of operations research
Characteristics of operations research
Role of operations research in decision-making
Methods of solving operations research problem
Phases in solving operations research problems
Typical problems in operations research
Scope of operations research
Why to study operations research
2. Syllabus
Why Operations Research?
Introduction
Origin of operations research
Definition of operations research
Characteristics of operations research
Role of operations research in decision-making
Methods of solving operations research problem
Phases in solving operations research problems
Typical problems in operations research
Scope of operations research
Why to study operations research
3. INTRODUCTION
Operations Research is a scientific approach to analyzing problems and making decisions.
It aims to provide rational bases for decision-making by seeking to understand structure complex
situations.
Use this understanding to predict system behavior and improve system performance.
Using -> Analytical and Numerical techniques to develop and manipulate mathematical and also
computer models of organizational systems composed of people, machines and procedures.
4. It is a branch of mathematics used to provide a scientific base for management to take timely and
effective decisions.
Avoids -> Dangers arising from decisions based on guesswork.
Two characteristics:
Multidimensional
Dynamic
5. Multidimensional:
Because managerial problems and their probable solutions have repercussions in
several fields such as human, economic, social and political fields.
7. General Approach:
To analyze the problem in every aspect and implement the solution only if it doesn’t violate human, social and
political constraints.
Management problem:
It can also be solved using quantitative approach.
The problem to be properly defined and thoroughly analyzed.
It includes collecting data, facts and information and then solving the problems in a rational and systematic
way.
It is primarily concerned with helping managers and executives to arrive at better decisions.
Now a days, managers are working in a dynamic environment.
Require -> Common sense, experience and commitment in making decisions.
8. They have to deal with systems with complex interrelationship of various factors among them.
Equality complicated dependence of the criterion of effective performance of the system on these
factors.
The science of operations research helps them take value-based decisions in such a dynamic
environment.
The scope of quantitative methods is very broad.
They are applied in defining the problems and getting solutions of various organizations, dealing
with finance, manufacturing, services, etc.
9. History:
There is no clear history that marks the Birth if O.R., it is generally accepted that the field originated
in England during the World War II.
Some say that Charles Babbage (1791-1871) is the Father of O.R because his research into the cost
of transportation and sorting of mail led to England’s University Penny Post in 1840.
Modern Operations Research originated at the Bowdsey Research Station in U.K. in 1937 to analyse
and improve the working of the UK’s Early Warning Rador System. During the Second World War
about 1000 Men and Women were engaged to work for British Army.
After World War II, Military Operational Research in U.K. became Operational Analysis (OA) within
the U.K. Ministry of Defence with expanded techniques and graving awareness
10. During WW2, the battle of Britain was a military campaign fought from July 1940 to June 1941
between Britain and Germany. It was conceived by the Germans after the fall of France. The battle was
part of a strategy to downgrade Britain’s air defense capabilities in order to facilitate a Land invasion.
We know now that The British were able to inflict an almost lethal blow to the Luftwaffe from which it
never fully recovered.
With close to 1,000 men and about 200 operational research scientists, the British invented the
Dowding System. This was a system made up of Radar stations, barrage balloons, fighter planes,
search lights and observation posts amongst others. It could process huge amounts of information very
fast. It gave Britain’s fighter defenses enough advanced warning to get ready for and intercept raids. It
allowed Fighter Command to manage its valuable and relatively limited resources and making sure
they were not wasted.The British had developed an air defense network that would give them a critical
advantage in the Battle of Britain.
11. Operations research
Developed during WW1 by military planners, OR is a subject that deals with the application of advanced
analytical methods to help make better decisions. Operations research results arrive at optimal or near-
optimal solutions to complex decision-making problems. It is considered an offshoot of applied
mathematics. It makes use of methods from other mathematical sciences, such as mathematical
modeling, mathematical optimization and statistical analysis operations.
The major disciplines in operational research are:
Computing and information technologies
Revenue management
Simulation
Manufacturing, service sciences, and supply chain management
Policy modeling and public sector work
Stochastic models
Transportation
Financial engineering
12. Weapon target assignment problem (Example)
Typical operation research in combinatorial optimization: this consists of finding an optimal
assignment of a set of weapons of various types to a set of targets in order to maximize the total
expected damage done to the enemy. Wikipedia example gives:
A commander has 5 tanks, 2 aircraft, and 1 sea vessel and is told to engage 3 targets with values 5,
10, and 20. Each weapon type has the following success probabilities against each target
13. Solution:
One feasible solution is to assign the sea vessel and one aircraft to the highest
valued target (3). This results in an expected survival value of 20(0.6)(0.5)=6}
20(0.6)(0.5)=6. One could then assign the remaining aircraft and 2 tanks to target
#2, resulting in expected survival value of 10(0.4)(0.8)^{2}=2.56
10(0.4)(0.8)^{2}=2.56. Finally, the remaining 3 tanks are assigned to target #1
which has an expected survival value of 5(0.7)^{3}=1.715} 5(0.7)^{3}=1.715.
Thus, we have a total expected survival value of 6+2.56+1.715=10.275}
6+2.56+1.715=10.275
14. Other application areas
Operations research is applied to manufacturing companies, airlines operations, service organizations,
government, and the military. Some of the sectors include:
• Resource assignment: assigning crew to flights, trains or buses; employees to projects)
• Facility location: this means deciding most appropriate location for new facilities such as warehouse and
factories
• Computer Network Engineering: involves packet routing and analysis.
• Hydraulics & Piping Engineering: the managing of water flow from reservoirs
• Health Services: managing information flow and supply chain management
• Game Theory: This involves identifying, understanding, and developing strategies adopted by companies
• Urban Design: effective City design
• Telecommunications: packet routing, timing, and analysis.
• Scheduling: Time slot for airlines, trains, and buses.
15. OPERATIONAL RESEARCH IN INDIA
The Operational Research Society of India was founded in 1957 to provide a forum for the
Operational Research Scientists as well as an avenue to widen their horizon by exchange of
knowledge and application of techniques from outside the country.
The Society is affiliated to the International Federation of Operational Research Societies
(IFORS).
The Headquarters of the Society is located in Kolkata at 39, Mahanirvan Road, Kolkata
700029, India.
At present the Society has 12 Operating Chapters located in Agra, Ahmedabad, Ajmer,
Bangalore, Chennai, Delhi, Durgapur, Jamshedpur, Kolkata, Madurai, Mumbai and Tirupati
16. ORIGIN OF OPERATIONS
RESEARCH:
It is a war baby as its idea first germinated during the Second World War.
1st problem -> Systematic way was concerned with how to set the time fuse bomb
to be dropped from an aircraft onto a submarine.
17. Second World War:
The military management in England invited a team of experts to analyze the problems related to
defense of the country.
The resources available with England were limited and they targeted to win the war with these
resources.
To decide the most effective utilization of the available resources including the military resources.
The experts were given the problem of resource utilization and asked to come out with a feasible
solution.
These specialists came out with a method for solving the problem.
18. Linear Programming:
This method worked out well in solving the war problem.
The word “Operations” is used to refer to the problems of military.
The word “Research” is used for inventing a new method.
After the Second World War, there was a scarcity of industrial material and industrial productivity
reached its nadir.
Industrial recession and to solve the industrial problem in method of linear programming was used
to get the optimal solution.
A lot of work has been done in the field.
Today OR has numerous methods for solving different types of problems.
19. Success:
The British military, US military management started applying the techniques to various activities
to solve military, civil and industrial problems called it Operational Analysis and some others
called it Operations Evaluation, Operations Research, System Analysis, System Evaluation,
Systems Research, Quantitative methods and so on.
The most commonly used in OR.
In the industrial world, the most important problem for which these techniques are used is how to
optimize the profit or how to reduce the costs.
20. Definitions of Operations Research:
OR applies scientific methods to deal with the problems of a system where men, material and
other resources are involved and the system under study may be industry, defense or business,
etc.
Explanation:
It says that the manager has to build a scientific model to study the system which must be
provided with the facility to measure the outcomes of various alternatives under various degrees
of risk, which helps the managers to take the optimal decisions.
21. Operational Research can be described as a scientific approach to the solution of problems in
the management of complex systems.
Explanation:
In a rapidly changing environment, an understanding is sought which will facilitate the choice of
more effective solutions which, typically, may involve complicated interaction among people,
materials, and money.
22. Operational Research in practice is a team effort, requiring the close cooperation among the
decision-makers, the skilled OR analysts, and the people who will be affected by management
action.
Explanation:
Because of wide scope and numerous, applications of operations research, different
mathematicians and researchers ended up giving different definitions.
Although giving a precise definition of operations research is not possible.
23. OR is the application of the theories of Probability, Statistics, Queuing, Games, Linear
Programming etc., to the problems of war, Government and Industry
Explanation:
A manager has to study the problem, formulate the problem, identify the variables and formulate a
model and select an appropriate technique to get optimal solution.
24. S. No Definitions Author Explanation
1 OR is the art of winning wars without actually
fighting
Aurther Clarke The directions and guidance
come from the minister or the
king, to which the war is fought
and won.
2 OR is the art of giving bad answers to problems
where otherwise worse answers are given
T. L. Satty It covers one aspect of decision
making, decisions are made on
guess.
3 OR is Research into Operations J. Steinhardf Operations may referred as
military activities and Research
means finding new approach
4 OR is defined as scientific method for providing
executive department quantitative basis for
decisions regarding the operations under this
control
P.M. Morse and G.E.
Kimball
It provide scientific methods to
an executive to make optimal
decisions and suggests that
executives can use scientific
methods for decision-making.
25.
26. Reasons:
OR is not a well-defined science like physics, chemistry, etc.
They are made by brain storming of people from various walks of life and
indicates approach is an interdisciplinary one, which is an important characteristic
of OR.
They given by various different times and stages of development of OR and
considered field in which they are involved.
Hence each definitions is concentrating on one or two aspects.
No definition is having a universal approach.
