What is Operations Research OR

1
What is Operations Research (OR)

• Is the determination of the best (optimum)
  alternative of a decision problem under the
  restriction of limited resources.
• is the application of the methods of science to
  complex problems arising in the direction and
  management of large systems of men, machines,
  material, and money in industry, business,
  govertment and defence.
• is the discipline of applying advanced analytical
  methods to help make better decisions.
• is a uniquely powerful approach to decision
  making
• is a scientific approach to analyzing problems
  and making decisions.
• is the professional discipline that deals with
  the application of scientific method to decision
  making, especially to the allocation of
  resources.
• means a scientific approach to decision making,
  which seeks to determine how best to design and
  operate a system, usually under conditions
  requiring the allocation of scarce resources.
• In a nutshell, OR is the secret of better
  decision making in a complex world

2
Topics of Operations Research (OR)

• Probability theory Statistics
• Decision Analysis System Analysis
• Optimization Game Theory
• Linear Programming Dynamic Programming
• Integer Programming Nonlinear Programming
• Stochastic Processes Queuing Theory
• Simulation PERT/CPM
• Reliability of Systems Inventory Theory
• Data Analysis Human Factor

3
Scope of the Operations Research (OR)

• designing the layout of a factory for efficient
  flow of materials
• connstructing a telecominications network at low
  cost while guaranteening quality of service
• resource allocations problems
• determining the routes of school buses (or city
  buses) so that as few buses are needed as
  possible
• designing the layout of a computer chip to reduce
  manufacturing time (therfore reducing cost)
• managing the flow of raw materials and products
  in a supply chain based on uncertain demand for
  the finished products
• managing freight, transportation and delivery
  systems
• blending of raw materials in oil refineries
• scheduling
• personnel staffing ,
• manufacturing steps ,
• machine project tasks,
• network data traffic,
• sports events and their television
  coverage.

4
Optimization is everywhere

• FIRMS WANT TO MAXIMIZE VALUE TO SHAREHOLDERS
• PEOPLE WANT TO MAKE THE BEST CHOICES
• WE WANT THE HIGHEST QUALITY AT THE LOWEST PRICE
• WHEN PLAYING GAMES, WE WANT THE BEST STRATEGY
• WHEN WE HAVE TOO MUCH TO DO, WE WANT TO OPTIMIZE
  THE USE OF OUR TIME

5
Benefits of Operations Research (OR)

• The management face complex decisions. OR
  professionals can analyse complex situations and
  build intelligence into key systems, so as to
  reveal the truly best options.
• The management isnt sure what the main problem
  is. OR professionals can help to determine
  exactly what the problems are or which areas and
  projects should be prioritised.
• The management is uncertain about the outcomes.
  OR professionals can model various scenarios,
  undertake what if analyses and help to
  determine potential outcomes and strategies
• The organization is having problems with
  processes. OR professionals can help improve
  these processes and their outcomes
• The management is troubled by risks. OR
  professionals can help to quantify risks,which is
  key to controlling it.
• The organization is not making the most of its
  data. OR professionals can specialize in working
  with data-extracting the most valuable
  information from what currently collected, and
  showing what additional data could be collected
  to increase the value even further.
• The organization needs to beat stiff competition.
  OR professionals can help an organization to stay
  on top with the latest methods-and open up
  important new sources of advantage.

6
Phases of Operations Research (OR)

• The major phases of OR team
• Definition of the problem.
• a description of the goal or the abjective of the
  study
• an idendification of the decision alternatives of
  the system
• a recognition of the limitations, restrictions
  and requirements of the system
• Construction of the model
• Solution of the model
• Validation of the model
• Implementation of the final results.
• .

7
History of Operations Research (OR)

• Charles Babbage (1791-1871) is the father of OR.
  Because his research into the cost of
  transportation and sorting of mail led to
  Englands universalPeny Post in 1840.
• The modern fields of OR began during Word War II.
  Scientists in the UK including Patrick Blackett,
  Cecil Gordon, C.H.Waddington, Owen Wansbrough and
  Frank Yates, and in the USA with George Dantzig
  looked for ways to make better decisions in such
  areas as logistics and training schedules.
• After the war it began to be applied to similar
  problems in industry.OR departments were
  established in a wide range of companies and
  govertment departments in UK, USA and Europe
  countries.