Operations research (OR) is an analytical method of problem-solving and
decision-making that is useful in the management of organizations. In operations research, problems are broken down into basic components and then solved in defined steps by mathematical analysis.
1. A set of potential solutions to a problem is developed. (This set may be
large.) 2. The alternatives derived in the first step are analyzed and reduced to a small set of solutions most likely to prove workable. 3. The alternatives derived in the second step are subjected to simulated implementation and, if possible, tested out in real-world situations. In this final step, psychology and management science often play important roles.
It can be used for solving different types of problems,
such as: i. Problems dealing with the waiting line, the arrival of units or persons requiring service.
ii. Problems dealing with the allocation of material or activities among limited facilities.
iii. Equipment replacement problems.
Nature of operational research
Inter- disciplinary team approach System approach Helpful in improving the quality of solution Scientific method Goal oriented optimum solution Use of models Required willing executives
SCOPE OF OPERATIONAL RESEARCH
Administration Intelligence Operations Tanning and supply