Spring 2013Master of Business Administration- MBA Semester 1MB0048
Operations Research- 4 Credits(Book ID: B1631)Assignment Set - 1 (60 Marks)Note: Assignment Set -1 must be written within 6-8 pages. Answer all questions.Q1.Explain the scope of Operations Research. What are the features of Operations Research?10marks
Role And Scope of Operations Research
The term operations research originated during second world war when U.S.A and Great Britain’s
Armed Forces sought hesitance of scientists to solve complex and very difficult strategically andtactical problems of warfare, like making mines harmless or increasing the efficiency of antisubmarine aerial wafer etc.Operations research employs mathematical logic to complex problems requiring managerialdecisions. It signifies research on operations. However, it take-in consideration a particular view of operations and a particular kind of research. Operations research is the organized application of modern science, mathematics and computer techniques to complex military, government, businessor industrial problems arising in the direction and management of large system of men, materials,money and machines.The purpose is to provide the management with explicit quantitative understating and assessmentof complex situations; to have sounder basis for arriving at best decisions. Operations research seeksthe optimum state in all spheres and thus provides optimum solution to organizational problems. Itis of considerable value in production management.
Characteristics of Operations Research
Operations research, an interdisciplinary division of mathematics and science, uses statistics,algorithms and mathematical modelling techniques to solve complex problems for the best possiblesolutions. This science is basically concerned with optimizing maxima and minima of the objectivefunctions involved. Examples of maxima could be profit, performance and yield. Minima could beloss and risk. The management of various companies has benefited immensely from operationsresearch.Operations research is also known as OR. It has basic characteristics such as systems orientation,using interdisciplinary groups, applying scientific methodology, providing quantitative answers,revelation of newer problems and the consideration of human factors in relation to the state underwhich research is being conducted.
This approach recognizes the fact that the behaviour of any part of the system has an effect on thesystem as a whole. This stresses the idea that the interaction between parts of the system is whatdetermines the functioning of the system. No single part of the system can have a bearing effect onthe whole.OR attempts appraise the effect the changes of any single part would have on the performance of the system as a whole. It then searches for the causes of the problem that has arisen either in onepart of the system or in the interrelation parts.
The team performing the operational research is drawn from different disciplines. The disciplinescould include mathematics, psychology, statistics, physics, economics and engineering. Theknowledge of all the people involved aids the research and preparation of the scientific model.