LESSON ONE ON ANALYSIS FOR BUSINESS DECISION II

ILLUSTRATION 1:

(a) What do you understand by Operation Research?

(b) State six characteristic features of Operation Research.

(c) The central approach of Operational Research is the use of model. 

      Enumerate ten various models developed to date.

SUGGESTED SOLUTIONS:

(a)  Operation Research is the use of mathematics and mathematical models to assist management in arriving at decision.

It can also be defined as the application of scientific method to the study of alternatives in a problem situation with a view of providing a quantitative basis for arriving at an optimum solution in terms of the goals sought.

(b) Six characteristic features of Operation Research are as follows:

i.        Based on Science and Scientific Approach.

ii.       Makes use of model

iii.      System Oriented

iv.      Inter-Disciplinary

v.       Executive Type Problem

vi.      Tactical, Routine and Operational in nature

(c)      Ten various models developed to date are as follows but not limited to the following models:

i.        Allocation Problems:

          a.       Linear Programming Problems

          b.       Transportation Problems

          c.       Assignment Problems

ii.       Network Analysis

iii.      Queuing Problems

iv.      Inventory Problems

v.       Games Theory

vi.      Markov Chains Analysis

vii.     Utility Theory

viii.    Sequencing

ix.      Simulation

x.       Replacement Analysis