OR Flashcards
A branch of mathematics - specially applied mathematics, used to provide a scientific base for management to take timely and effective decisions to their problems.
Operation Research
Scope and Application of Operation Research
Operation Research is used for to for various activities which include scheduling, routing, workflow improvements, elimination of bottlenecks, inventory control, business processes re – engineering, site selection, or facility and general operational planning.
Manufacturing
The application of OR in revenue management entails first to accurately forecasting the demand, and secondly to adjust the price structure over time to more profitably allocate fixed capacity.Revenue Managemen
Revenue Management
OR helps in taking decisions that include the who, what, when, and where abstractions from purchasing and transporting raw materials and parts, through manufacturing actual products and goods, and finally distributing and delivering the items to the customers.
Supply Chain Management
In Financial markets, OR practitioners address issues such as portfolio,and risk management planning and analysis of customer service. They are widely employed in Credit Risk Management—a vital area for lenders needing to ensure that they find the optimum balance of risk and revenue. OR techniques are also applied in cash flow analysis and capital budgeting.
Financial Services
OR helps marketing manager in making the apt selection of product mix. It helps them in making optimum sales resource allocation and assignments.
Marketing Managemen
OR techniques are being applied widely in the functional area of Human Resource Management by helping the human resource managers in activities like manpower training, resource allocation and staffing and scheduling of training programs.
Human Resource Management
Types of Models used in Operation Research
To deal with specific types of problems, models like diagrams, charts, graphs and drawings are used. The schematic way of representation of significant factors and interrelationship may be in a pictorial form help in useful analysis. Moreover, they help in easy observation, description and prediction.
Physical Model
use letters, numbers, figures to represent decision variables of the system
Symbolic Model
Two types of Symbolic Models Verbal Models and Mathematical Models
Combined Analogue and Mathematical Mode
When analogue models are interpreted with the use of mathematical symbols, they can be termed as physical-symbolic models. For instance, decision-makers tend to use mathematical symbols to represent their sales or profit figures
Models which are used to represent a group of functions performed, are called function models.
Function Model
When intuition guides a problem-solver to find solutions, heuristic models are developed. Even though he would not be able to find an optimum solution to the problem, with his past experience he arrives at the most advantageous solution. However, it depends on how intuitive and creative the decision-maker is.
Heuristic Model
Module 1: Linear Programming
Linear Programming
- Used to describe the relationship among two or more variables which are directly or precisely proportional.
Linear
The decisions which are taken systematically by adopting alternative courses of action.
Programming
BASIC REQUIREMENTS
: refers to any candidate (person, service, projects, jobs, tasks) competing with other decision variables for limited resources.
Decision Variables
