INTRODUCTION

TO OPERATIONS
RESEARCH

UNIT 1
 Understand the meaning, purpose, and
tools of Operations Research

Describe the Phases of Problem Solving

OBJECTIVES: and Decision Making

Identify the Different Quantitative

Methods in Problem Solving

Explain the Applications of Operations

Research
 • is concerned with the use of
quantitative methods to assist in
OPERATIONS
RESEARCH decision making. It emphasizes not the
methods themselves, but rather how
they can contribute to better decisions.
MANAGERS MAKE DECISIONS EVERYDAY…

Qualitative Approach Quantitative Approach

PROBLEM
SOLVING AND
DECISION
MAKING
A SUBCLASSIFICATION OF THE
DECISION-MAKING PROCESS
THE ROLE OF QUALITATIVE AND
QUANTITATIVE ANALYSIS
 The problem is complex

Involves many variables

USE There are data which describe the decision environment

QUANTITATIVE
APPROACH There are data which describe the value or utility of the
different possible alternatives
WHEN THE
The goal of the of the decision maker can be described in
PROBLEM IS: quantitative terms

Workable models are available for these situations

 Iconic models
Model Development Analog models
Mathematical models

QUANTITATIVE Data Preparation

ANALYSIS
PROCESS
Model Solution

Report Generation
QUANTITATIVE METHODS IN MANAGEMENT

Use of Linear Inventory

Forecasting
Probabilities Programming Models

Waiting Line Project

Decision
or Queueing Simulation Scheduling:
Analysis
Models PERT/CPM
 APPLICATIONS OF MANAGEMENT SCIENCE /
OPERATIONS RESEARCH

Organization Area of Application

Federal Express Logistical planning of shipments
Continental Airlines Reassign crews to flights when schedule disruptions occur
Welch’s Optimize use and movement of raw materials
Samsung Electronics Reduce manufacturing times and inventory levels
Taco Bell Plan employee work schedules at restaurants
General Motors Improve efficiency of production lines
Time Inc. Management of distribution channels for magazines