What is Optimization?
Optimization problem: Maximizing or minimizing some function
relative to some set, often representing a range of choices available in a
certain situation. The function allows comparison of the different choices for
determining which might be “best.”
Common applications:
Minimal cost, maximal profit, best approximation, optimal design, optimal
management or control, variational principles.
Definitions of
Operational Research
- · “OR is concerned with scientifically deciding how to best design and operate man-machine system usually requiring the allocation of scare resources.” – Operations Research Society, America
- · “OR is essentially a collection of mathematical techniques and tools which in conjunction with system approach, are applied to solve practical decision problems of an economic or engineering nature’’. – Daellenbach and George
- · “OR utilizes the planned approach (updated scientific method) and an interdisciplinary team in order to represent complex functional relationships as mathematical models for the purpose of providing a quantitative analysis’’. – Thieraub and Klekamp
- · “OR is a scientific knowledge through interdisciplinary team effort for the purpose of determining the best utilization of limited resources.” – H.A. Taha
- · “OR is a scientific approach to problem solving for executive management”. – H.M. Wagner
FEATURES OF Operational Research
The significant features of operations
research include the followings:
(i)
Decision-making:
Every industrial organisation faces multifaceted problems to identify best
possible solution to their problems. OR aims to help the executives to obtain
optimal solution with the use of OR techniques. It also helps the decision
maker to improve his creative and judicious capabilities, analyse and
understand the problem situation leading to better control, better
co-ordination, better systems and finally better decisions.
(ii)
Scientific Approach: OR applies scientific
methods, techniques and tools for the purpose of analysis and solution of the
complex problems. In this approach there is no place for guess work and the
person bias of the decision maker.
(iii)
Inter-disciplinary Team Approach:
Basically the industrial problems are of complex nature and therefore require a
team effort to handle it. This team comprises of scientist/mathematician and
technocrats. Who jointly use the OR tools to obtain a optimal solution of the
problem. The tries to analyse the cause and effect relationship between various
parameters of the problem and evaluates the outcome of various alternative
strategies.
(iv)
System
Approach: The main aim of the system approach is to trace for each proposal
all significant and indirect effects on all sub-system on a system and to
evaluate each action in terms of effects for the system as a whole. The
interrelationship and interaction of each sub-system can be handled with the
help of mathematical/analytical models of OR to obtain acceptable solution.
(v)
Use
of Computers: The models of OR need lot of computation and therefore, the
use of computers becomes necessary. With the use of computers it is possible to
handle complex problems requiring large amount of calculations. The objective
of the operations research models is to attempt and to locate best or optimal
solution under the specified conditions. For the above purpose, it is necessary
that a measure of effectiveness has to be defined which must be based on the
goals of the organisation. These measures can be used to compare the
alternative courses of action taken during the analysis.
PHASES OF
Operational Research STUDY
OR is a logical and systematic approach to provide a
rational basis for decision-making. The phases of OR must be logical and
systematic.
The various steps required for the analysis of a problem
under OR are as follows:
Step I. Observe the Problem Environment : The
first step of OR study is the observation of the environment in which the
problem exists. The activities that constitute this step are visits,
conferences, observations, research etc. with the help of such activities, the
OR analyst gets sufficient information and support to proceed and is better
prepared to formulate the problem.
Step II. Analyse and Define
the Problem: In this step not only the problem is defined but also uses,
objectives and limitations of the study that are stressed in the light of the
problem. The end results of this step are clear grasp of need for a solution
and understanding of its nature.
Step III. Develop a Model: The next step is to
develop model, which is representation of same real or abstract situation. OR
models are basically mathematical models representing systems, process or
environment in form of equations, relationships or formulae. The activities in
this step is to defining interrelationships among variables, formulating
equations, using known OR models or searching suitable alternate models. The
proposed model may be field tested and modified in order to work under stated
environmental constraints. A model may also be modified if the management is
not satisfied with the answer that it gives.
Step IV. Selection of Data Input: It is a
established fact that without authentic and appropriate data the results of the
OR models cannot be trusted. Hence, taping right kind of data is a vital step
in OR process. Important activities in this step are analysing
internal-external data and facts, collecting opinions and using computer data
banks. The purpose of this step is to have sufficient input to operate and test
the model.
Step V. Solution and Testing: In this step the
solution of the problems is obtained with the help of model and data input.
Such a solution is not implemented immediately and this solution is used to
test the model and to find its limitations if any. If the solution is not
reasonable or if the model is not behaving properly, updating and modification
of the model is considered at this stage. The end result of this step is
solution that is desirable and supports current organisational objectives.
Step VI. Implementation of the Solution: This is the last phase
of the OR study. In OR the decision-making is scientific but implementation of
decision involves many behavioral issues. Therefore, implementation authority
has to resolve the behavioral issues, involving the workers and supervisors to
avoid further conflicts. The gap between management and OR scientist may offer
some resistance but must be eliminated before solution is accepted in totality.
Both the parties should play positive role, since the implementation will help
the organisation as a whole. A properly implemented solution obtained through
OR techniques results in improved working conditions and wins management
support.
Comments