SMU MBA ASSIGNMENTS

Answer:  Role And Scope of Operations Research

The term operations research originated during second world war when U.S.A and Great Britain’s Armed Forces sought hesitance of scientists to solve complex and very difficult strategically and tactical problems of warfare, like making mines harmless or increasing the efficiency of antisubmarine aerial wafer etc.

Operations research employs mathematical logic to complex problems requiring managerial decisions. It signifies research on operations. However, it take-in consideration a particular view of operations and a particular kind of research. Operations research is the organized application of modern science, mathematics and computer techniques to complex military, government, business or industrial problems arising in the direction and management of large system of men, materials, money and machines.

 

The purpose is to provide the management with explicit quantitative understating and assessment of complex situations; to have sounder basis for arriving at best decisions. Operations research seeks the optimum state in all spheres and thus provides optimum solution to organizational problems. It is of considerable value in production management.

 

Characteristics of Operations Research

Operations research, an interdisciplinary division of mathematics and science, uses statistics, algorithms and mathematical modelling techniques to solve complex problems for the best possible solutions. This science is basically concerned with optimizing maxima and minima of the objective functions involved. Examples of maxima could be profit, performance and yield. Minima could be loss and risk. The management of various companies has benefited immensely from operations research.

 

Operations research is also known as OR. It has basic characteristics such as systems orientation, using interdisciplinary groups, applying scientific methodology, providing quantitative answers, revelation of newer problems and the consideration of human factors in relation to the state under which research is being conducted.

 

Systems Orientation

This approach recognizes the fact that the behaviour of any part of the system has an effect on the system as a whole. This stresses the idea that the interaction between parts of the system is what determines the functioning of the system. No single part of the system can have a bearing effect on the whole.

OR attempts appraise the effect the changes of any single part would have on the performance of the system as a whole. It then searches for the causes of the problem that has arisen either in one part of the system or in the interrelation parts.

Interdisciplinary groups

The team performing the operational research is drawn from different disciplines. The disciplines could include mathematics, psychology, statistics, physics, economics and engineering. The knowledge of all the people involved aids the research and preparation of the scientific model.

Application of Scientific Methodology

OR extensively uses scientific means and methods to solve problems. Most OR studies cannot be conducted in laboratories, and the findings cannot be applied to natural environments. Therefore, scientific and mathematical models are used for studies. Simulation of these models is carried out, and the findings are then studied with respect to the real environment.

 

New Problems Revealed

Finding a solution to a problem in OR uncovers additional problems. To obtain maximum benefits from the study, ongoing and continuous research is necessary. New problems must be pursued immediately to be resolved. A company looking to reduce costs in manufacturing might discover in the process that it needs to buy one more component to manufacture the end product. Such a scenario would result in unexpected costs and budget overruns. Ensuring flexibility for such contingencies is a key characteristic of OR.

Provides Quantitative Answers

The solutions found by using operations research are always quantitative. OR considers two or more options and emphasizes the best one. The company must decide which option is the best alternative for it.

Human Factors

In other forms of quantitative research, human factors are not considered, but in OR, human factors are a prime consideration. People involved in the process may become sick, which would affect the company’s output.

 

 

Q2.Six Operators are to be assigned to five jobs with the cost of assignment in Rs. given in the matrix below. Determine the optimal assignment. Which operator will have no assignment?

10 marks