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Operation Research: Definition, Scope and Techniques

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❶Assigning audit teams effectively Credit policy analysis Cash flow planning Developing standard costs Establishing costs for byproducts Planning of delinquent account strategy. Operations Research also grew in many areas other than the military once scientists learned to apply its principles to the civilian sector.

Limitations of Operations Research

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Thus the operation management is concerned with the optimum utilisation of resources i. In other words, it is concerned with the satisfactory customer service and optimum resource utilisation. Inputs for an operating system may be material, machine and human resource. Operation Research is done by a team of scientists or experts from different related disciplines.

For example, for solving a problem related to the inventory management, O. Location and size of warehouses, distribution centres and retail outlets, distribution policies. Number and location of factories, warehouses etc. Loading and unloading facilities. While evaluating any decision, the important interactions and their impact on the whole organisation against the functions originally involved are reviewed. Operation Research, is a scientific approach for decision-making, and therefore must follow following steps: The problem must be first clearly defined.

It is common to start the O. The study must also consider economical aspects. Environment involves physical, social and economical factors which are likely to affect the problem under consideration. Expected reactions of the competitors to the alternative must also be considered. Models are used to determine the solution either by simulation or by mathematical analysis. A properly formulated and correctly manipulated model is useful in predicting the effect of changes in control variables on the overall system effectiveness.

The solution derived from a model remains effective so long as the uncontrolled variables retain their values and the relationship. The solution goes out of control, if the values of one or more variables vary or relationship between them undergoes a change.

In such circumstances the models need to be modified to take the changes into account. Solution so obtained should be translated into operating procedure to make it easily understandable and applied by the concerned persons. Examples of operation research models are: Objective of the model is to provide a means for analysing the behaviour of the system for improving its performance.

It should be able to asscimilate the system environmental changes without change in its framework. A mathematical model is a set of equations in which the system or problem is described. Advertising budget allocation Product introduction timing Selection of Product mix Deciding most effective packaging alternative. Personnel planning Recruitment of employees Skill balancing Training program scheduling Designing organizational structure more effectively.

Operations Researchers job needs a mathematician or statistician, who might not be aware of the business problems. Similarly, a manager is unable to understand the complex nature of Operations Research.

Thus there is a big gap between the two personnel. In this modern world these factors are enormous and expressing them in quantitative model and establishing relationships among these require voluminous calculations, which can be handled only by machines.

The basic data are subjected to frequent changes, incorporating these changes into the operations research models is very expensive. However, a fairly good solution at present may be more desirable than a perfect operations research solution available in future or after some time.

When all the factors related to a problem can be quantifiable only then operations research provides solution otherwise not. The non-quantifiable factors are not incorporated in O. Once the decision has been taken it should be implemented.

The implementation of decisions is a delicate task. This task must take into account the complexities of human relations and behavior and in some times only the psychological factors. Day-by- day operations research gaining acceptance because it improve. If you don't receive any email, please check your Junk Mail box. If it is not there too, then contact us to info docsity. If even this does not goes as it should, we need to start praying! Distance between Manager and Operations Researcher: Similarly, a manager fails to understand the complex working of O.

Thus, there is a gap between the two. Money and Time Costs: When the basic data are subjected to frequent changes, incorporating them into the O. Moreover, a fairly good solution at present may be more desirable than a perfect O. Implementation of decisions is a delicate task. It must take into account the complexities of human relations and behaviour.

Advantages of Operations Research

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5 important Limitation of Operations Research: There are a number of limitations of operations research which may be stated as follows: 1. In the quantitative analysis of operations research, certain assumptions and estimates are made for assigning quantitative values to factors involved.

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Operations Research Advantages, Limitations of Operations Research, Uses of OR, Role, Problems where Operational Research can be used Advantages & Limitations of Operations Research Operations research is a robust tool and offers directions in making the best decisions possible given the data available.

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Video: Operations Research: Limitations & Advantages After describing operations research as a general operations management strategy, this lesson covers the limitations and advantages of the method. Learn about why this method is applied in service and product-based businesses. In operations research, management formulates a problem and then finds optimal or near-optimal solutions to the problem. Operations research makes extensive use of computers. The most popular OR techniques include simulation, linear programming, data mining, game theory and decision tree analysis.

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limitations, which is basically related to the time, money, and the problem involves in the model building. Day-by- day operations research gaining acceptance because it improve decision making effectiveness of the managers. Almost all the areas of business use the operations research for decision making. Operations research has been used to solve only a fairly limited number of managerial problems. Its limitations should not be overlooked. In the first place, there is the sheer magnitude of the mathematical and computing aspects.