Operation Research

Operation Research

Operation Research  is also known as-

i.                   Quantitative techniques for decision making.

ii.                  Management Science.

iii.                Quantitative techniques.

iv.                Operation management.

Meaning of Operation Research:

Before coming to the answer, we should know – what is Operation? And what is Research?



Operation:An operation is a set of acts required for the accomplishment of some desired outcomes or objectives. 

Research: Research is a systematic quest to discover the hidden truth.

Operation Research is a systematic and scientific method of providing executive departments with a quantitative basis for decision regarding the operation under their control.

  --Morse and Kimball.

Operation research is a scientific approach to problem solving for executive management.

  --H. M. Wagner

On the other hand, Operation research is the application of scientific method by interdisciplinary teams to problem involving the control of organized systems so as to provide solutions which best to serve the purpose of the organization as a whole.

So we can say that operation research or quantitative technique may be defined as those techniques which provide the decision makers with a systematic and powerful means of analysis and help based on quantitative data in exploring policies for achieving predetermined goals.

Important Operation Research Techniques

(Tools of Operation Research)

1.      Linear Programming:

These techniques are used in finding a solution for optimizing a given objective, such as profit maximization or cost minimization under certain constraints. Linear Programming techniques solve product mix and distribution problems of business and industry. It is a technique used to allocate scare resources in an optimum manner in problems of scheduling product mix and so on.

2.      Queuing Theory:

Waiting line or queuing line deals with mathematical study of queues. The queues are formed whenever the current demand for service exceeds the current capacity to provide that service. Waiting line technique concerned itself with the random arrival of customers at a service station where the facility is limited. Mainly with the help of it we can find the optimum capacity to be installed which will lead to a short of economic balance between cost of service and cost of waiting.

3.      Game Theory:

Game theory is used to determine the optimum strategy in competitive situation. Simply as possible competitive situation is that of two persons are involved, one person wins exactly and other person losses.

4.      Inventory Control Planning:

Inventory control planning aims at optimizing inventory levels. Inventory may be defined as the useful idle resource which has economic value, such as- raw material, spare parts, finished products etc. Mainly it helps to get answer of two questions- How much to buy? And when to buy?

5.      Decision Theory:

Decision theory concerned with making sound decision under conditions of certainty, risk and uncertainty. From the various alternatives decision theory helps to select the best one.

6.     Network Analysis:

Network analysis involves the determination of an optimum sequence of performing certain operations concerning some jobs. In order to minimize the overall time and/ or cost, it uses various models-

• Programming evaluation and review techniques (PERT);
• Critical path method (CPM);
• Gantt Chart etc.