Operation Research Introduction

OPERATION RESEARCH -INTRODUCTION

OPERATION RESEARCH:(OR)

• It is the study of optimization technique.
• It is an applied decision theory.
• Rapid Development and invention of new techniques occurred since the world war II because of the necessity to win the war with the limited resources available. Different teams had to research on military operations , in order to invent techniques to manage with the available resources so as to obtain the desired objective.

SCOPES / USES / APPLICATIONS OF OR:

1. Project Management
2. Inventory Control Problems
3. Maintenance and replacement Problems
4. Assignment of jobs to applicants in order to maximize the total profit or minimize the total cost
5. Shortest route Problem like Travelling Salesman Problem
6. Game theory
7. Sequencing and scheduling problems

ROLES OF OR IN BUSINESS & MANAGEMENT:

1. Marketing Management- Product Selection ,competitive strategies, Advertising strategy
2. Production Management
3. Finance Management
4. Personal Management
5. Purchasing and Procurement
6. Distribution