Description
‘Operation’ implies some action applied to any area of interest and ‘Research’ means some organized process of getting information about the problem environment.
Operational Research- I
BBM- 308
Quantitative Techniques
Operational Research
DEFINITION
? Operation research is a scientific
approach to problems solving for
management.
? ‘Operation’ implies some action
applied to any area of interest and
‘Research’ means some organized
process of getting information about
the problem environment.
MODELS
ANALOGUE DETERMINISTIC
ICONIC PROBABILISTIC
SYMBOLIC COMBINED
HEURISTIC
? ICONIC (PHYSICAL) MODEL?
- Pictorial representation
- Look like real thing
- Concrete, special, easily under stable
- Ex.? toy aero plane, photograph, globe etc.
? ANALOGUE (SCHEMATIC) MODEL?
- No look alike aspect
- Properties are used to represent
- Ex.? map, organizational chart.
? DETERMINISTIC MODEL?
- All parameters are fixed
- Ex.? linear programming model.
? SYMBOLIC (MATHEMATICAL) MODEL?
- Mathematical symbols and functions are used
- Abstract and more useful
- Communication is clearer
? COMBINED ANALOGUE AND MATHEMATICAL MODEL?
- Use of mathematical models
? HEURISTIC MODEL?
- Use rules and guidelines
- Solve problems on basis of past experience
- Creativity and experience
? PROBABILISTIC MODEL?
- Used in situations where consequences cannot be predicted
- Also known as- stochastic or chance models
- Ex ? waiting lines
APPROACHES
? METHODICAL APPROACH?
- Based on scientific methods, principles,
tools, techniques for solving a problem
- Obtaining optimal results
- Systematic method
? OBJECTIVE APPROACH?
- Ensures desirability for the organization profitability
? WHOLISTIC APPROACH?
- Every aspect of the problem is studied.
SIGNIFICANCE
? Provides solution for various business problems?
- Profit maximization
- Cost minimization
? Helps in planning?
- Depends on demands
- Develop scientific basis
? Provides help in optimum resource allocation?
- Allocates resources
- Adopted by modern managements
LINEAR
PROGRAMMING
RATIO
METHOD
SIMPLEX
METHOD
WAITING
LINE
GAME
THEORY
TECHNIQUES
? LINEAR PROGRAMMING?
- Mathematical device
- Optimum use of resources
- Enhance the profitability
- Important techniques for optimization
? GAME THEORY?
- Develop during world war II by Jon
Von Newmann
- Two competitors, two opponents
- Efforts are put up
- Maximize the profits and minimize the
loses
? WAITING LINE OR QUEING THEORY?
- Most difficult to apply
- Minimizes the waiting time
- Reduces the total cost of time
- Ex ? grocery stores, medicine stores, railway stations, banks,
cinema halls.
? SIMPLEX METHOD?
- Used to find the optimum solution of business problems
- Ex ? industries, banks, financial institutions.
- Also known as ‘iterative method’ ? maximum or minimum
value of objective function will be arrived through repetitive
drawls of ‘simplex tables’.
? RATIO METHOD OF ANALYSIS?
- Obtained by dividing one number into another
- Used by management for planning, organizing, controlling,
coordination
- Accurate and used effectively.
APPLICATIONS
AGRICULTURE
MINING
MEDICAL
BANKS
PLANNING
INDUSTRIES
BUSINESS
COSTLY
OPERATION
COMBINING TWO
OR MORE
FUNCTIONS
INTERNAL
RESISTANCE
PRACTICAL
APPLICATION
LIMITATIONS
THANK YOU
doc_593309470.ppt
‘Operation’ implies some action applied to any area of interest and ‘Research’ means some organized process of getting information about the problem environment.
Operational Research- I
BBM- 308
Quantitative Techniques
Operational Research
DEFINITION
? Operation research is a scientific
approach to problems solving for
management.
? ‘Operation’ implies some action
applied to any area of interest and
‘Research’ means some organized
process of getting information about
the problem environment.
MODELS
ANALOGUE DETERMINISTIC
ICONIC PROBABILISTIC
SYMBOLIC COMBINED
HEURISTIC
? ICONIC (PHYSICAL) MODEL?
- Pictorial representation
- Look like real thing
- Concrete, special, easily under stable
- Ex.? toy aero plane, photograph, globe etc.
? ANALOGUE (SCHEMATIC) MODEL?
- No look alike aspect
- Properties are used to represent
- Ex.? map, organizational chart.
? DETERMINISTIC MODEL?
- All parameters are fixed
- Ex.? linear programming model.
? SYMBOLIC (MATHEMATICAL) MODEL?
- Mathematical symbols and functions are used
- Abstract and more useful
- Communication is clearer
? COMBINED ANALOGUE AND MATHEMATICAL MODEL?
- Use of mathematical models
? HEURISTIC MODEL?
- Use rules and guidelines
- Solve problems on basis of past experience
- Creativity and experience
? PROBABILISTIC MODEL?
- Used in situations where consequences cannot be predicted
- Also known as- stochastic or chance models
- Ex ? waiting lines
APPROACHES
? METHODICAL APPROACH?
- Based on scientific methods, principles,
tools, techniques for solving a problem
- Obtaining optimal results
- Systematic method
? OBJECTIVE APPROACH?
- Ensures desirability for the organization profitability
? WHOLISTIC APPROACH?
- Every aspect of the problem is studied.
SIGNIFICANCE
? Provides solution for various business problems?
- Profit maximization
- Cost minimization
? Helps in planning?
- Depends on demands
- Develop scientific basis
? Provides help in optimum resource allocation?
- Allocates resources
- Adopted by modern managements
LINEAR
PROGRAMMING
RATIO
METHOD
SIMPLEX
METHOD
WAITING
LINE
GAME
THEORY
TECHNIQUES
? LINEAR PROGRAMMING?
- Mathematical device
- Optimum use of resources
- Enhance the profitability
- Important techniques for optimization
? GAME THEORY?
- Develop during world war II by Jon
Von Newmann
- Two competitors, two opponents
- Efforts are put up
- Maximize the profits and minimize the
loses
? WAITING LINE OR QUEING THEORY?
- Most difficult to apply
- Minimizes the waiting time
- Reduces the total cost of time
- Ex ? grocery stores, medicine stores, railway stations, banks,
cinema halls.
? SIMPLEX METHOD?
- Used to find the optimum solution of business problems
- Ex ? industries, banks, financial institutions.
- Also known as ‘iterative method’ ? maximum or minimum
value of objective function will be arrived through repetitive
drawls of ‘simplex tables’.
? RATIO METHOD OF ANALYSIS?
- Obtained by dividing one number into another
- Used by management for planning, organizing, controlling,
coordination
- Accurate and used effectively.
APPLICATIONS
AGRICULTURE
MINING
MEDICAL
BANKS
PLANNING
INDUSTRIES
BUSINESS
COSTLY
OPERATION
COMBINING TWO
OR MORE
FUNCTIONS
INTERNAL
RESISTANCE
PRACTICAL
APPLICATION
LIMITATIONS
THANK YOU
doc_593309470.ppt