Operation Research

MEANING OF OR: OR IN THE MOST GENERAL SENSE,CAN BE CHARACTERIZED AS THE APPLICATION OF SCIENTIFIC METHODS,TECHNIQUES AND TOOLS,TO PROBLEMS INVOLVING THE OPERATIONS OF A SYSTEM SO AS TO PROVIDE THOSE IN CONTROL OF THE OPERATIONS WITH OPTIMUM SOLUTIONS TO THE PROBLEMS. ACCORDING TO OPERATION RESEARCH SOCIETY,AMERICA: OR IS CONCERENED WITH SCIENTIFICALLY DECIDING HOW TO BEST DESIGN AND OPERATE MAN-MACHINE SYSTEMS USUALLY REQUIRING THE ALLOCATION OF SCARCE RESOURCES.

HISTORY OF OR: OR CAME INTO EXISTENCE DURING WORLD WAR II WHEN THERE WAS A NEED TO MANAGE SCARCE RESOURCES. 

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THE TERM OR WAS COINED AS A RESULT OF “RESEARCH ON MILITARY OPERATIONS “DURING THIS WAR. DURING WAR A GROUP OF SPECIALISTS FROM VARIOUS FIELDS LIKE MATHEMATICS,ECONOMICS,STATISTICS,ENGINEERING, BEHAVOURAL AND PHYSICAL SCIENCE WERE FORMED AS SPECIAL UNITS WITHIN THE ARMED FORCES TO DEAL WITH STRATEGIC AND TACTICAL PROBLEMS OF VARIOUS MILITARY OPERATIONS.

AFTER THE WAR ENDED, SCIENTISTSWHO HAD BEEN ACTIVE IN THE MILITARY OR GROUPS MADE EFFORTS TO APPLY OR APPROACH TO CIVILIAN PROBLEMS,RELATED TO BUSINESS,INDUSTRY,R&D etc. DURING 1950,THERE WAS SUBSTANTIAL PROGRESS IN THE APPLICATION OF OR TECHNIQUES FOR CIVILIAN ACTIVITIES ALONG WITH INTEREST IN THE PROFESSIONAL DEVELOPMENT AND EDUCATION IN OR.

NATURE & SIGNIFICANCE: OR APPROACH IS PARTICULARLY USEFUL IN BALANCING CONFLICTING OBJECTIVES WHERE THERE ARE MANY ALTERNATIVE COURSES OF ACTION ARE AVAILABLE TO DECISION MAKERS. 

OPTIMAL DECISION MUST BE ONE THAT IS BEST FOR THE ORGANIZATION AS A WHOLE.IT IS OFTEN CALLED GLOBAL OPTIMUM.

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A DECISION THAT IS BEST FOR ONE OR MORE SECTIONS OF THE ORGANIZATION IS USUALLY CALLED SUBOPTIMUM DECISION.

APPLICATIONS OF OR FINANCE AND ACCOUNTING  DIVIDEND POLICIES ,PORTFOLIO MGT,CAPITAL BUDGETING,COST ALLOCATION AND COST CONTROL AND FINANCIAL PLANNING. MARKETING  SELECTION OF PRODUCT MIX,ADVERTISING,MEDIA PLANNING,SALES EFFORT ALLOCATION AND ASSIGNMENT. PURCHASING,PROCUREMENT AND EXPLORATION  DETERMINATION OF QUANTITIES AND TIMINGS OF PURCHASE,BIDDING POLICIES,VENDOR ANALYSIS,TRANSPORTATION PLANNING

PRODUCTION MANAGEMENT   

PROJECT PLANNING FACILITIES PLANNING MANUFACTURING PLANNING

PERSONNEL MANAGEMENT  MANPOWER PLANNING AND RECRUITMENT  SCHEDULING OF TRAINING  JOB ASSIGNMENT  ESTABLISHING EQUITABLE BONUS SYSTEM

GOVERNMENT ECONOMIC PLANNING  NATURAL RESOURCES,SOCIAL PLANNING  MILITARY,POLICE ,URBAN HOUSING PROBLEMS GENERAL MANAGEMENT  MAKING QUALITY CONTROL MORE EFFECTIVE  DECISION SUPPORT SYSTEM,MIS AND FORECASTING 