Introduction to Operations

Research
Optimization?
• It is the act of obtaining the best result
under any given circumstances.

The goal of decision making is to either maximize

the desired benefit or minimize the effort
required.

OR by Soumitra Chakraborty
Optimum

OR by Soumitra Chakraborty
Objective of OR
• Objective of OR is to provide a scientific basis to the
decision makers for solving the problems involving the
interaction of various components of organization.
• Known as Optimal decision

OR by Soumitra Chakraborty
Definitions
• Operations research as the application of scientific
methods, techniques and tools to operations of a
system with optimum solution to the problem.
• OR is the use of scientific methods to provide criteria
for decisions regarding man, machine, systems
involving repetetive operations.

OR by Soumitra Chakraborty
Scope of OR
• In Defense Operations
• In Industry
• Production
• Inventory
• Marketing
• Purchasing
• Transportation
• Competitive Strategies

OR by Soumitra Chakraborty
Scope of OR
• Planning
• Agriculture
• Hospitals
• Transport
• Research & Development

OR by Soumitra Chakraborty
Features of OR
• System Oriented
• Inter- disciplinary
• Scientific approach
• Quantitative solution
• Increases effectiveness of management decision making
ability

OR by Soumitra Chakraborty
Phases of OR
• Judgment Phase
• Determination of the operation
• Establishing objective and values related to operations.
• Formulation of the problems relative to the objective
• Research Phase
• Data collection
• Formulation of Hypothesis and model
• Verification of the Hypothesis
• Prediction of various results and consideration of
alternatives.
• Action Phase
• Making recommendation
OR by Soumitra Chakraborty
Operations Research - Methodology

Operations
Research

Problem Solution
Analysis Development

Solution
Validation

Evaluation Implementation
 Operations Research Approach

• Phase -I PROBLEM ANALYSIS

• Define the Operations Research

• Analyze the problem and divide into smaller units
• Establish research priorities
Operations Research Approach

• Phase-II SOLUTION DEVELOPMENT

• Specify solution objectives

• Specify decision variables and stipulate
constraints on the solution
• Identify or construct an appropriate model
for solution development
• Determine and obtain required data
• Develop solutions using analytical model
 Operations Research Approach

• Phase-III SOLUTION VALIDATION

• Design field test

• Implement field test
• Evaluate the propose solution
• modify if necessary
• Integrate the solution with the larger system
OR Models
• Physical Model
• Iconic
• Analog
• Mathematical Model
• By nature of Environment
• EOQ, Game Theory
• By the extent of generality
• Linear Programming

OR by Soumitra Chakraborty
Methodology
• Definition of the problem
• Construction of the model
• Solution of the Model
• Validation
• Implementation

OR by Soumitra Chakraborty
The Structure of Mathematical Model
• Decision Variables
• Unknowns
• Objective Function
• Maximization/Minimization
• Constraints
• Physical Limitation of The system

OR by Soumitra Chakraborty
Limitations of OR
• Magnitude of Computation
• Non-quantitative factors are ignored.
• Wide gap between managers and OR researchers
• Time and money factor when basic data is subject to
frequent changes.
• Implementation of decision involves human relations and
behavior.

OR by Soumitra Chakraborty