Master of Business Administration-MBA Semester 2nd
Operations Research - 4 CreditsAssignment Set- 2
Q.1 What is model in OR ? disscuss different models available in OR.ANS:
A model is an idealized representation or abstraction of a real-life system. Theobjective of a model is to identify significant factors that affect the real-life system and theirinterrelationships. A model aids the decision-making process as it provides a simplifieddescription of complexities and uncertainties of a problem in a logical structure. The mostsignificant advantage of a model is that it does not interfere with the real-life system.
A broad classification of OR models
You can broadly classify OR models into the following types.a.
include all form of diagrams, graphs and charts. They are designed totackle specific problems. They bring out significant factors and interrelationships in pictorialform to facilitate analysis. There are two types of physical models:a. Iconic modelsb. Analog modelsIconic models are primarily images of objects or systems, represented on a smaller scale.These models can simulate the actual performance of a product. Analog models are smallphysical systems having characteristics similar to the objects they represent, such as toys.b.
Mathematical or Symbolic Models
employ a set of mathematical symbols to representthe decision variable of the system. The variables are related by mathematical systems.Some examples of mathematical models are allocation, sequencing, and replacementmodels.c.
By nature of Environment:
Models can be further classified as follows:a. Deterministic model in which everything is defined and the results are certain, such as anEOQ model.b. Probabilistic Models in which the input and output variables follow a defined probabilitydistribution, such as the Games Theory.d.
By the extent of Generality
Models can be further classified as follows:a. General Models are the models which you can apply in general to any problem. Forexample: Linear programming.b. Specific Models on the other hand are models that you can apply only under specificconditions. For example: You can use the sales response curve or equation as a function ofonly in the marketing function.