Introduction to Opreation Research Mnanagement MBA PPT

7/31/2019 Introduction to Opreation Research Mnanagement MBA PPT

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Module 1

By Babasab Patil


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Used by statisticians, administrators, politicians,and the technicians working in team to solve theproblemIn agriculture-optimum allocation of land and

water from the available resourcesIn finance-to maximise per capita income withmin resources, profitable planning for thecountry, to determine the best replacement

policiesIn industry-optimum allocation of resources like4m


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In marketing-to decide the products for sale in whichplace ,to select the best advertising, what to purchaseand when and from whomIn personnel management-to appoint most suitable

person on minimum salary, to determine the base agefor retirementIn production management-to find out number andsize of the items to be produced, in scheduling andsequencing, to select, locate, and design the sites forproductionIn LIC-to decide the premium rates, to distribute theprofits among the polices


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Too expensive to create a complex model based on themodelSome times data are subject to frequent changes and thusmodification of model is very costly

Some times OR specialist become too much enamored with the model they have built and forget that theirmodel does not represent the real world problemMany OR models are complex in nature which can not besolved with out using the computer Also solutions obtained from theses models are difficultto explain to the managersMagnitude of computation involved, and psychologicalissues in implementation are some of the short comings

of operations research


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Interdisciplinary approach-team work through havingindividuals having different specialisations to analyse theproblem in that particular field to get an appropriatesolutionScientific approach-scientific methods, techniques, andtools to solve the problem.Holistic approach-while arriving at a decision anoperations research team examines the relativeimportance of conflicting and multiple objectives and the validity of claims of various depts of the organisation fromthe perspective of the whole org

Objective

oriented approach-optimal solution is soughtunder analysis.a measure of desirability or effectiveness isdefined , based on the objective of the org and thencompared with the alternative course of action withrespect to their outcomes


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There are 3 phases of the scientific method on which OR approach is based

a) Judgment phase-the phase includes

1. Identification of the real life problem2. Selection of appropriate objective and the values of various variables related to this obj

3. Application of the appropriate scale of measurement i.e. deciding the measure of effectiveness

4. Formulation of an appropriate model of theproblem, abstracting the essentialinformation, so that the solution can be obtained


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c. Action phase-the phase consisting of makingrecommendations for implementing the decision by an individual who is in the position to implementresults.The individual must be aware of the envt in whichthe problem occurred, objective, assumptions, andomissions of the model of the problem


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Formulation of the problemConstruction of the modelDeriving the solution from the model Validity of the modelEstablishing the control over the solutionImplementation of the final result


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Introduction to Opreation Research Mnanagement MBA PPT

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