OPERATION RESEARCH

MERVE GUL
2010503028
CONTEXT:
• What is O.R. ?
• History of Operation Research
• Necessity of O.R.
• The Basic Tools Used in O.R.
• The Seven Steps To A Good OR
Analysis
• Applications of O.R.
• First Establisment of O.R.
 What is O.R. ?

Operations research (O.R.) is the

discipline of applying advanced
analytical methods to help make
better desicions.
 HISTORY of O.R.

Scientific approach to
management
principles was put
forward by Frederick
Taylor in the early
1900s.
 Necessity of O.R.

After The Industrial Revolution, different

sections like manufacture, marketing,
financing occured in industrial enterprises.
Approaches of problems between these
sections and finding better solutions
caused the evolution of OR.
 BASIC PROPERTIES OF O.R.

• USE THE SYSTEM APPROACH

• IS AN INTERDISCIPLINARY
APPROACH
• USE OF SCIENTIFIC METHODS
 THE SEVEN STEPS TO A GOOD OR
ANALYSIS :

OR ANALYSIS

1) IDENTIFY THE PROBLEM 2) UNDERSTAND

OR OPPORTUNITY THE SYSTEM

3) FORMULATE A
4) VERIFY THE PROBLEM
MATHEMATICAL MODEL

5) SELECT THE BEST 6) PRESENT THE RESULTS

ALTERNATIVE OF THE ANALYSIS

7) IMPLEMENT AND
EVALUATE
 1) IDENTIFY THE PROBLEM OR OPPORTUNITY

• WHAT ARE THE

OBJECTIVES ?
• IS THE PROPOSED
PROBLEM TOO
NARROW ?
• IS IT TOO BROAD ?
2) UNDERSTAND THE SYSTEM

• WHAT DATA
SHOULD BE
COLLECTED ?
• HOW WILL DATA
BE COLLECTED ?
• HOW DO
DIFFERENT
COMPONENTS OF
THE SYSTEM
INTERACT WITH
EACH OTHER ?
3) FORMULATE A MATHEMATICAL MODEL

• WHAT KIND OF
MODELS SHOULD
BE USED ?
• IS THE MODEL
ACCURATE ?
• IS THE MODEL TOO
COMPLEX ?
4) VERIFY THE PROBLEM

• DO OUTPUTS
MATCH CURRENT
OBSERVATIONS
FOR CURRENT
INPUTS ?
• ARE OUTPUTS
REASONABLE ?
• COULD THE
MODEL BE
ERRONEOUS ?
5) SELECT THE BEST ALTERNATIVES

• WHAT IF THERE ARE

CONFLICTING
OBJECTIVES ?

• INHERENTLY THE
MOST DIFFICULT
STEP.
• THIS IS WHERE
SOFTWARE TOOLS
WILL HELP US !!
 6) PRESENT THE RESULTS OF THE ANALYSIS

• THE OUTPUTS OF THE

MODEL DO FIT
WITHIN THE OUTPUT
FROM THE SYSTEM
ITSELF ?
• ARE THE OUTPUTS OF
THE MODEL
REASONABLE ?
• THE MODEL MAY BE
WRONG ?
7) IMPLEMENTATION AND EVALUATE

• Users must be
trained on the
new system.
• System must be
observed over
time to ensure
it works
properly.
APPLICATIONS OF O.R.
 •TRANSPORTATION and TRAVEL

OR techniques are used by airlines and rail companies

to offer varying fares and make higher revenues by
filling more seats at different prices - an OR technique
known as Yield Management. All airlines depend on
the effective use of OR techniques to make them
operate at a profit.
 •RETAILING

In supermarkets, data from store loyalty card schemes

is analyzed by OR groups to advise on merchandising
policies and profitability improvement. OR methods
are also used to decide when and where new store
developments should be made.
 •HEALTH

Hospital managers use

OR to make decisions
such as determining the
optimal utilization of
operating rooms and
personnel, assessing the
risks posed by patients
with various medical
conditions, and deciding
necessary levels of
perishable medicine in
stock.
•FINANCIAL SERVICES

OR practitioners address
issues such as portfolio
and risk management,
planning and analysis of
customer service. They are
widely employed in Credit
Risk Management—a vital
area for lenders needing
to ensure that they find
the optimum balance of
risk and revenue.
 •GOVERNMENT

OR is a key contributor in modernizing government

services and making them more efficient. Some OR
applications include modeling the impact of
performance related paying for teachers, evaluating
government call-centers, projecting the size of the
prison population, and national defense.
 THE FIRST ESTABLISMENT OF O.R.

• The first operations

research organization
founded in 1952 in the
United States has
been ORSSA(The
Operational Research
Society of America).
• The first team of
operation research in our
country was founded in
1965, TUBITAK.
THANKS FOR LISTENING 