2. Introduction
It had its early roots
in World War II and is
flourishing in
business and industry
with the aid of
computer
3. • Operations
• The activities carried out in an organization.
• Research
• The process of observation and testing characterized
by the scientific method. Situation, problem
statement, model construction, validation,
experimentation, candidate solutions.
Operations Research is a quantitative approach to
decision making based on the scientific method of
problem solving.
4.
5. Terminology
• The British/Europeans refer to “Operational Research", the
Americans to “Operations Research" - but both are often
shortened to just "OR".
• Another term used for this field is “Management Science"
("MS"). In U.S. OR and MS are combined together to form
"OR/MS" or "ORMS".
• Yet other terms sometimes used are “Industrial Engineering"
("IE") and “Decision Science" ("DS").
6. In Industry
Business
Government
Defense fields
People
Machine
Material
Money
management
7. This Situation Provides
More complete data
Consideration of all available options
Careful predictions of outcomes and
estimates of risk
The latest decision tools and techniques
9. Optimization is a word that
comes to mind first in
operations research.
10. Problem Solving and Decision Making
• 7 Steps of Problem Solving
(First 5 steps are the process of decision making)
– Identify and define the problem.
– Determine the set of alternative solutions.
– Determine the criteria for evaluating the alternatives.
– Evaluate the alternatives.
– Choose an alternative.
---------------------------------------------------------------
– Implement the chosen alternative.
– Evaluate the results.
12. Identification Of The Problem
“Right solution” can not be
obtained from the “wrong
problem
The first and most important
stage of the work is defining
the problem well.
This phase helps examine
the problem at hand
quantitatively.
13. The Establishment Of The Model
Development of the functional mathematical relationships that describe-
Decision variables
Objective function
Constraints of the problem and
Non negativity condition
14. Advantages of Models
• Generally, experimenting with models
(compared to experimenting with the real
situation):
– requires less time
– is less expensive
– involves less risk
15. Obtaining Model Solution
This phase obtains an optimal solution for the
model by using various techniques.
16. Various Techniques/Methods
1. Linear Programming Problem (LPP)
2. Transportation Problem (TP)
3. Assignment Problem (AP)
4. Simulation
5. PERT/CPM
17. Testing Of The Model Solution
Before the application of the model solution, the validity of model and
reliability of the solution should be tested.
Validity of the model can be decided by comparing its outputs with the
results of past.
18. If past behavior is repeated when
provided similar inputs (a stable
solution is being obtained), the
model will be valid.
19. Implementation
• A solution to a problem
usually implies changes
for some individuals in the
organization
• Implementation of the
solution obtained from a
validated model is a
reliable solution to the
real-life problems
Situation
Procedure
Implement
the Procedure