Introduction to Operational Research

Introduction to Operational Research

• Operational Research (OR) is a systematic, analytical approach to decision-making and problem-solving.
• OR, used in USA, Canada, Africa, Australia, and Europe, is a branch of applied mathematics.
• It uses techniques and statistics to find optimal solutions to complex problems.
• OR aims to determine maximum profit, sales, output, crop yield, efficiency, and minimize losses, risks, costs, and time.
• It is a vital part of industrial engineering.
• Primary tools for Operational Researchers include statistics, game theory, and probability theory, etc.

History of Operational Research

• The exact origins of OR are uncertain. It emerged in England during World War II.
• Some credit Charles Babbage (1791-1871), who studied mail sorting and transport costs as the "Father of OR." His research led to England's Penny Post system in 1840.
• Operational Research began at the Bowdsey Research Station (UK) in 1937 to improve the UK's early radar system.
• Many people (approx. 1000 men and women) were employed during WWII to support the UK military.
• Operational research (OR) became operational analysis (OA) within the UK Ministry of Defence after the end of WWII. These later studies added and refined some of the previous techniques.

Operational Research in India

• The Operational Research Society of India was formed in 1957 to provide a platform for OR professionals to exchange ideas and use techniques and processes from outside the country.
• The society is part of the International Federation of Operational Research Societies.
• The society has twelve branches: Agra, Ahmedabad, Ajmer, Bangalore, Chennai, Delhi, Durgapur, Jamshedpur, Kolkata, Madurai, Mumbai, and Tirupati.
• The goals include the advancement and practice of research in the field, the dissemination of knowledge, promotion of OR and promoting professionalism and academic standards of work in OR.
• Tax exemptions are available to those who contribute towards the goals of the society.
• The society publishes a quarterly journal called OPSEARCH, and has offered a graduate diploma programme in Operational Research since 1973.

Definition of Operational Research

•  OR is an act of winning wars without fighting. - Arthur Clark
• OR is the scientific approach to problem-solving for management. - H.M. Wagner
• OR is the art of giving bad answers to problems that would otherwise result in worse answers. - T.L. Saaty

Features of Operational Research

• Decision-Making
• Scientific Approach
• Interdisciplinary Team Approach
• System Approach
• Use of Computers
• Objectives
• Human Factors

Decision Making

• Organizations use OR to find the best solutions to problems.
• OR aims to help executives make optimal decisions using OR techniques.
• It improves creative thinking, problem analysis, better control, coordination, systems, and decisions.
• OR uses scientific methods to solve complex problems.
• Subjectivity and guesswork are avoided.

Interdisciplinary Team Approach

• OR problems are complex and require a team effort, including scientists, mathematicians, and experts.
• The team uses OR tools to arrive at optimal solutions.
• Teams analyze relationships between variables and evaluate different solutions.

Systems Approach

• OR traces all significant and indirect impacts on a system and its subsystems.
• It evaluates all actions in terms of overall system effects.
• Using mathematical/analytical models, a suitable solution can be reached.

Use of Computers

• OR models need lots of calculations and so computer use is necessary.
• This allows effective handling of complex OR problems.
• The models aim to identify the best or optimal solution that addresses the objectives of an organization.

Human Factors

• In OR quantitative solutions, human factors are not typically considered.
• The human factor plays a major role in impacting problems.

Scope of Operational Research

• OR is used in all industrial and many other organizations. (ie. defense).
• It can handle simple to complex problems with all organizational aspects in mind.

Fields

• National Planning and Budgeting
• Defence Services
• Industrial Establishments and Private Sector Units
• R&D and Engineering

Methods/Approaches

• Orientation
• Problem Definition
• Data Collection
• Model Formulation
• Solution
• Analysis and Information
• Implementation and Monitoring

Techniques/Tools

• Linear Programming
• Queuing Theory
• Sequencing
• Transportation Problems
• Integer Problems
• Assignment Problems
• Decision Theory and Games Theory
• Replacement Problems
• Symbolic Logic

Time and Money Cost

• Changes to basic data require significant investment to maintain updated OR models.
• A good, achievable solution is often preferred over a perfect, but long-delayed solution.
• Implementation is sensitive to complex human relationships, behaviors, and psychological reactions, which might affect the perceived quality of a solution.