INTRODUCTION TO

OPERATIONS
RESEARCH
 INTRODUCTION

“Operations research is the application of

scientific methods, techniques and tools to
problems involving the operations of a
system so as to provide those in control of
the system with optimum solution to the
problem” C.W Churchman
O.R is the art of finding bad answers where
worse exist.
Meaning and History

 In order to understand ‘What operations research is today' we must

know something its history.
 HISTORY:-The main origin of OR was during the Second World-War . At
that time the military management in England called upon a team of
scientists to study the strategic and tactical problems related to air and land
defence of the country. since they were having very limited military
resources, it was necessary to decide upon the most effective utilisation of
them.
The OR teams were not actually engaged in military operations and in
fighting the War. But ,they were only advisors and significantly instrumental
in winning the war. The work of this team of scientist was named as
OPERATIONAL RESEARCH in England. Hence OR can be associated with
“an art of winning the war without actually fighting it”
 The first mathematical technique was developed in 1947 byAmerican
Mathematician, George B. Dantzig.
Operations research in INDIA

 OR came into existence in India in 1949, Regional research

laboratory, Hyderabad.
 In INDIA OR society founded in 1959, , also became a member of
international Federation of OR societies in 1959.The Journal
OPSEARCH was published for the first time in 1963.
APPLICATION OF O.R IN THE FIELD
OF ACCOUNTING,FINANCE
 AND MARKETING
ACCOUNTING:
1. Cash flow , fund flow planning
2. Credit policy analysis
3. Claim and complaint procedure
 FINANCE:-
1. Dividend policydecision
2. Investment decision
3. Portfolio analysis
 Marketing:-
1. Advertising budgetallocation
2. Product introductiontiming
3. Selection of product mix
4. Customers' preferences
 METHODOLOGY

 Observe the problem environment

 Analysis and defining the problem
 Developing amodel
 Collecting data required by the model
 Coming up with a solution
 Qualifying the models and solution
 Implement thesolution
 ADVANTAGES

 Diagnose theproblem
 Select the alternative course of action
 Determine the model to be used
 Evaluation of variousalternatives
 Selecting the best and optimal alternative.
 LIMITATIONS
 Magnitude ofComputations
 Non- quantifiablefactors
 Gap between manager and operations
researcher