Operations Research

What is O.R.?
O.R. is the scientific knowledge through inter-disciplinary team effort for the purpose of best utilization of limited resources.
It refers to the application of scientific methodology to provide quantitative basis for such decisions which will permit management to make best solution.

History of O.R.
Firstly it was developed during second World war. In India, OR techniques were introduced in 1949 at Regional Research Lab, Hyderabad. Nowadays,O.R. plays an important role in decision making in both private and public sectors, defence etc.

Characteristics of O.R.
Decision making approach Objective achievement

Functions of Operation Researcher/Analyst

Minimize the Input Maximize the Output Proper utilization of available resources

Scope of O.R.
Purchasing-Determine the quantity and time of purchase of raw materials. - Rules for buying and supplying Production Management-Manufacturing - Distribution (loc. and size of warehouses)

 Inventory Management- How much to order? - when to order? Marketing Management- Product selection, - Competitor activities - Media Allocation Policies - Introduction of new product

 Personnel Management- Recruitment policies - Assignment of jobs - Selection Criteria Research and Development- Control of developed projects. - Determination of time and cost requirements - Reliability

Limitations of O.R.
Solution to a problem is often derived either by making it simpler or simplifying assumptions and thus, sol have limitations. Often, the decision maker is not fully aware of the limitations of the models that he is using.