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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 time
7. 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.