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IntroductionIntroductionOperationOperation ResearchResearch isis anan interdisciplinaryinterdisciplinarybranchbranch of of appliedapplied mathematicsmathematics andand formalformalsciencescience thatthat usesuses methodsmethods suchsuch asas
Mathematical modelingMathematical modeling
StatisticStatistic
AlgorithmAlgorithm
toto arrivearrive atat optimaloptimal oror nearnear optimaloptimal solutionssolutions totocomplexcomplex problemsproblems.. ItIt isis typicallytypically concernedconcernedwithwith determiningdetermining thethe maximummaximum profitprofit ororminimumminimum lossloss ,, risk risk of of somesome objectiveobjective functionfunction..OperationOperation ResearchResearch helpshelps managementmanagement achieveachieveitsits goalsgoals usingusing scientificscientific methodsmethods..
8/8/2019 Or Intro Slides
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HistoryHistory
Modern Operation Research originated atModern Operation Research originated at
Bawdsey Research Station in UK in 1937.Bawdsey Research Station in UK in 1937.
It was theIt was the resultresult of an initiative of the station'sof an initiative of the station'ssuperintendent A.P Rowe.superintendent A.P Rowe.
He conceived the idea as a means to analyzeHe conceived the idea as a means to analyze
and improve the working of the UK's earlyand improve the working of the UK's early
Radar System.Radar System.
His idea was successful.His idea was successful.
8/8/2019 Or Intro Slides
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HistoryHistory
Later Later onon duringduring worldworld war war IIII ,, thethe militarymilitarycommandscommands of of UU..K K.. andand UU..SS..AA engagedengaged severalseveralinterdisciplinaryinterdisciplinary teamsteams of of scientistsscientists toto
undertakeundertake scientificscientific researchresearch intointo strategicstrategic andandtacticaltactical militarymilitary operationsoperations..
Their Their missionmission waswas toto formulateformulate specificspecific proposal proposal andand plans plans for for aidingaiding thethe MilitaryMilitary
CommandsCommands toto arrivearrive atat thethe decisiondecision onon optimaloptimalutilizationutilization of of scarcescarce militarymilitary resourcesresources andandeffortsefforts andand alsoalso toto implementimplement decisiondecisioneffectivelyeffectively..
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HistoryHistory
OR OR teamsteams werewere notnot actuallyactually involvedinvolved ininfightingfighting thethe war war but but theythey werewere onlyonly advisorsadvisorsandand significantlysignificantly instrumentalinstrumental inin winningwinning thethe
war war because because of of their their goodgood intellectualintellectual supportsupporttoto thethe strategicstrategic initiativesinitiatives of of thethe militarymilitarycommandscommands..
After After thethe war war thethe apparentapparent successsuccess of of militarymilitaryteam,team, itit attractedattracted thethe attentionattention of of thethe industryindustry..
8/8/2019 Or Intro Slides
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HistoryHistory
InIn IndiaIndia OperationOperation ResearchResearch waswas originatedoriginated
duringduring thethe lastlast phase phase of of worldworld war war IIII..
InitiallyInitially ,, anan OR OR centrecentre waswas formedformed atat thethe Air Air headquartersheadquarters toto tackletackle thethe problems problems relatingrelating toto
radar radar..
TheThe work work donedone by by thisthis groupgroup of of scientistscientist waswas
veryvery limitedlimited inin itsits scopescope..
8/8/2019 Or Intro Slides
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HistoryHistory
ActuallyActually inin IndiaIndia OR OR startedstarted inin 19491949 withwith thethe openingopeningupup of of aa unitunit atat thethe RegionalRegional ResearchResearch Laboratory,Laboratory,HyderabadHyderabad for for usingusing OperationOperation ResearchResearch inin planning planningandand organizingorganizing researchresearch..
After After thatthat AhmedabadAhmedabad TextileTextile IndustryIndustry ResearchResearchAssociationAssociation organizedorganized anan OR OR groupgroup for for their their industrialindustrial problem problem..
InIn 19531953 anan OR OR unitunit waswas formedformed atat thethe IndianIndianStatisticalStatistical InstituteInstitute ,, CalcuttaCalcutta withwith aa viewview toto applyapply OR OR techniquestechniques toto nationalnational planning planning under under thethe guidanceguidance of of Prof Prof.. MahalnobisMahalnobis..
8/8/2019 Or Intro Slides
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HistoryHistory
OROR gotgot itsits formalformal recognitionrecognition inin thethe countrycountry withwith thetheformationformation OO..RR.. SocietySociety of of IndiaIndia inin 19571957..
TheThe societysociety becamebecame thethe member member of of thethe internationalinternationalFederationFederation of of SocietiesSocieties inin 19591959 andand organizedorganized itsits firstfirstconferenceconference atat allall IndiaIndia levellevel inin thethe samesame year year..
After After thatthat publicationpublication of of thethe JournalJournal OPSEARCHOPSEARCH byby
ORSIORSI inin 19641964 further further addedadded toto thethe growthgrowth of of OROR..
ORSIORSI isis regularlyregularly organizingorganizing itsits annualannual conventionconvention sincesince19681968..
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OR Education In IndiaOR Education In India
OR education was formally initiated in India with theOR education was formally initiated in India with theformation of Indian Institute of Ahmedabad and Calcuttaformation of Indian Institute of Ahmedabad and Calcuttaduring the year 1961during the year 1961--62.62.
The university of Delhi started a full time Master¶s degree inThe university of Delhi started a full time Master¶s degree inOperation Research in 1963.Operation Research in 1963.
A Graduate Programme in operation research was introducedA Graduate Programme in operation research was introduced
by the Operation Research Society of India in 1973. by the Operation Research Society of India in 1973.
Today almost all the universities and Institutions in India areToday almost all the universities and Institutions in India areoffering the inputs of Operation Research In their Curriculum.offering the inputs of Operation Research In their Curriculum.
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Successful OR Applications in industrySuccessful OR Applications in industry
Company year Problem Annual Saving
errill ynch
esign Asset based anddirect online pricingoption for providing
Financial Services
8 million more
revenue
Continental Airlines
Optimize the reassignment of crews to flights whenschedule disruptionsoccur 4 million
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Phases of Operation ResearchPhases of Operation Research
Define the Problem of Interest and gathering relevantDefine the Problem of Interest and gathering relevant
datadata
Formulate mathematical model to represent theFormulate mathematical model to represent the
problem problem
Develop a computer Develop a computer--based procedure for deriving based procedure for deriving
solution to the problem from the modelsolution to the problem from the model
Test the model and refine it as neededTest the model and refine it as needed Prepare for ongoing application of the model asPrepare for ongoing application of the model as
prescribed by management & Implement prescribed by management & Implement
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Phases of ORPhases of OR
Define the Problem of Interest and gathering relevantDefine the Problem of Interest and gathering relevant
datadata
This IncludesThis Includes
DeterminingDetermining of of appropriateappropriate objectivesobjectives
ConstraintsConstraints
InterrelationshipsInterrelationships betweenbetween thethe areaarea toto bebe studiedstudied andand
otherother areasareas
PossiblePossible alternativealternative coursecourse of of actionaction
TimeTime limitlimit forfor makingmaking aa decisiondecision
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Phases of ORPhases of OR
ExampleExample:: DefineDefine thethe ProblemProblem of of InterestInterest andand gatheringgatheringrelevantrelevant datadata
AnAn OR OR studystudy donedone for for SanSan FranciscoFrancisco PolicePolice DepartmentDepartmentresultedresulted inin thethe computerizedcomputerized systemsystem for for optimallyoptimallyschedulingscheduling andand deployingdeploying police police patrol patrol officersofficers..
TheThe newnew systemsystem provided provided annualannual savingsaving of of $$1111million,million, andand
aa 2020%% improvementimprovement inin responseresponse timestimes.. InIn assessingassessing thetheappropriateappropriate objectivesobjectives for for thisthis studystudy ,, threethree fundamentalfundamentalobjectivesobjectives werewere identifiedidentified
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Phases of ORPhases of OR
Objectives of the study were identified as:Objectives of the study were identified as:
Maintain a high level of citizen safety.Maintain a high level of citizen safety. Maintain a high level of officer Morale.Maintain a high level of officer Morale.
Minimize the cost of operations.Minimize the cost of operations.
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Phases of ORPhases of OR
ExampleExample:: InIn thethe latelate 19901990ss fullfull serviceservice financialfinancial serviceservice
firmsfirms camecame under under assaultassault fromfrom electronicelectronic
brokerage brokerage firmfirm offeringoffering extremelyextremely lowlow tradingtradingcostscosts..
MerrillMerrill LynchLynch respondedresponded by by conductingconducting major major
OR OR studystudy thatthat ledled toto completecomplete overhauloverhaul inin howhow
itit chargedcharged for for itsits services,services, rangingranging fromfrom aa aa fullfull
serviceservice assetasset based based optionoption toto aa lowlow costcost optionoption
for for clientsclients wishingwishing toto investinvest onlineonline directlydirectly..
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Phases of ORPhases of OR
DataData collectioncollection andand processing processing played played aa keykeyrolerole inin thethe studystudy
ToTo analyzeanalyze thethe impactimpact of of individualindividual clientclient behavior behavior inin responseresponse toto differentdifferent optionsoptions thetheteamteam neededneeded toto assembleassemble aa comprehensivecomprehensive datadata
of of 200200 gigabytesgigabytes involvinginvolving 55 millionmillion clients,clients,1010 millionmillion accounts,accounts, 100100 millionmillion tradetrade records,records,andand 250250 millionmillion ledger ledger recordsrecords..
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Formulate mathematical model toFormulate mathematical model to
represent the problemrepresent the problem ExampleExample
AnAn OR OR studystudy donedone for for MonsantoMonsanto waswas concernedconcerned withwith
optimizingoptimizing production production operationoperation inin MonsantoMonsanto chemicalchemical plant plant toto minimizeminimize thethe costcost of of meetingmeeting targettarget for for thethe
amountamount of of certaincertain chemicalchemical product product toto be be produced produced inin
thatthat monthmonth.. TheThe decisionsdecisions toto be be mademade areare thethe dialdial
settingsetting for for eacheach of of thethe catalyticcatalytic reactor reactor usedused toto produce produce
thisthis product, product, wherewhere settingsetting determinesdetermines thethe costcost of of
operatingoperating thethe reactor reactor andand amountamount produced produced..
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Phases of Operation ResearchPhases of Operation Research
Develop a computer Develop a computer--based procedure for based procedure for
deriving solution to the problem from thederiving solution to the problem from the
modelmodel
Test the model and refine it as neededTest the model and refine it as needed
Prepare for ongoing application of the modelPrepare for ongoing application of the model
as prescribed by management & Implementas prescribed by management & Implement
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O.R. APPROACHO.R. APPROACH
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Classification Of odelsClassification Of odels
Models can be classified according to followingModels can be classified according to following
characteristicscharacteristics
Classification by structureClassification by structure
Iconic Models Iconic Models
Analogue Models Analogue Models
Symbolic Model Symbolic Model
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Classification Of odelsClassification Of odels
Classification by PurposeClassification by Purpose
Descriptive Model Descriptive Model
Predictive Model Predictive Model
Prescriptive Model Prescriptive Model
Classification by nature of EnvironmentClassification by nature of Environment
Deterministic Models Deterministic Models Probabilistic Models Probabilistic Models
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Classification Of odelsClassification Of odels
Classification By behaviorClassification By behavior
Static Model Static Model
Dynamic Model Dynamic Model Classification By Method of SolutionClassification By Method of Solution
Analytical Models Analytical Models
Simulation ModelsSimulation Models
Heuristic ModelsHeuristic Models