CHAPTER 1

INTRODUCTION TO O.R.

• The term operations research was first coined in 1940 by McClosky and Trefthen in a small town Bowdsev, of the United Kingdom.

• This new science came into existence in a military context during the World War II.

• The new approach to the systematic and scientific study of the operations of the system was called Operations Research or operational research.

• Operation Research is a philosophy involving a particular type of disciplined approach to management problems.

DEFINITIONS • OR is a scientific method of providing executive departments with a

quantitative basis for decisions regarding the operations under their control.

[Morse and Kimbal (1946)]• OR is the scientific method of providing executive with an analytical

and objective basis for decisions.[P.M.S. Blackett (1948)]

• OR is the art of giving bad answers to problems to which otherwise worse answers are given.

[T.L. Saaty (1958)]• OR is a scientific approach to problem solving for executive

management.[H.M. Wagner]

• OR is the scientific knowledge through interdisciplinary team effort for the purpose of determining the best utilization of limited resources.

[H.A. Taha]

CHARACTERISTICS OF OPERATIONS RESEARCH :

1. Existence of a problem.2. Intention to solve the problem.3. Application of system concept and system analysis tp the problem.4. Scientific approach to the problem where research methods are used.5. Formation of a group consists of different specialists.6. Team is constituted by management.7. Operation Research assists the management to take decisions.8. Operation Research role is that of recommendatory nature.9. Existence of a number of solutions to the problem.10. Solutions must be optimum.11. Solution must be most appropriate.12. Solution must meet the objectives with in the constraints.13. Solution must be given in quantifiable terms.14. Solution must be practical, application specific and result – oriented.

OBJECTIVES OF OPERATIONS RESEARCH

1. It is decision making and improve its quality.2. Identification of optimum solution which is most

appropriate.3. Integrating the systems as a whole.4. Improve objectivity of analysis and classify of

thought.5. Minimize the cost and maximize the profit.6. Improve productivity and efficiency.7. Success in competitions and markets

leadership.

FUNCTION OF OPERATION RESEARCH

1. Provide scientific Basis to Decision making.2. Reduce complex problems to a number of simple

problems.3. Bring in Trade-off.4. Provide system integration.5. Optimization of Resources.6. Maximizing time7. Minimizing cost.8. Maximizing profit.9. Selection of Best Alternative.10. Solution of specific problems.

SCOPE OF OPERATIONS RESEARCH

1. Agriculture.2. Finance.3. Industry.4. Marketing.5. Personnel Management.6. Production Management.7. Public administration.8. Town Planning.9. Education.10. Business management.11. Research and Development.12. Irrigation Projects, etc.

PHASES OF OR

1. Formulating the problem.

2. Constructing a mathematical model.

3. Deriving the solution from the model.

4. Testing the model and its solution (updating the model).

5. Controlling the solution.

6. Implementation.

TECHNIQUES OF OPERATION RESEARCH –

LINEAR PROGRAMMING

It is a mathematical model for determining how to use certain limited resources or capacities for a particular objective such as profit maximization. Problems may be classified in to assignment models, transportation models or product mix problems etc.