Operations Research Fundermentals
Operations Management II
Introduction to Operations Research
Operations Research (OR)
Definition
Operations Research is the representation of real world systems by mathematical models together with the use of quantitative methods (Algorithms) for solving such models, with a view of optimising. - (J.E Beasley)
“The attack of modern science on complex problems arising in the direction and management of large systems of men, machines, materials and money in industry, business, government and defence. The distinctive approach is to develop a scientific model of the system incorporating measurements of factors such as change and risk, with which to predict and compare the outcome of alternative decisions, strategies or controls. The purpose is to help management determine its policy and action scientifically”.
- (T. Lucey)
Other definitions
• The discipline of applying advanced analytical methods to help make better decisions. • Using techniques such as mathematical modelling to analyse complex situations, OR gives executives the power to make more effective decisions and build more productive systems.
OR methods include :
1. Simulation: Giving you the ability to try out approaches and test ideas for improvement. 2. Optimisation : Narrowing your choices to the very best when there are virtually innumerable feasible options and comparing them is difficult. 3. Probability and Statistics : Helping you measure risk, mine data to find valuable connections and insights, test conclusions and make reliable forecasts 4. Mathematical modelling 5. Complex algorithms 6. Visualisation 7. Neural networks 8. Pattern recognition 9. Data mining, Data warehousing.
OR can be used to support an indefinite number of business decisions.
Typical application of OR • Capital Budgetting • Asset allocation • Fraud prevention, Anti money laundering
Introduction to Operations Research
Operations Research (OR)
Definition
Operations Research is the representation of real world systems by mathematical models together with the use of quantitative methods (Algorithms) for solving such models, with a view of optimising. - (J.E Beasley)
“The attack of modern science on complex problems arising in the direction and management of large systems of men, machines, materials and money in industry, business, government and defence. The distinctive approach is to develop a scientific model of the system incorporating measurements of factors such as change and risk, with which to predict and compare the outcome of alternative decisions, strategies or controls. The purpose is to help management determine its policy and action scientifically”.
- (T. Lucey)
Other definitions
• The discipline of applying advanced analytical methods to help make better decisions. • Using techniques such as mathematical modelling to analyse complex situations, OR gives executives the power to make more effective decisions and build more productive systems.
OR methods include :
1. Simulation: Giving you the ability to try out approaches and test ideas for improvement. 2. Optimisation : Narrowing your choices to the very best when there are virtually innumerable feasible options and comparing them is difficult. 3. Probability and Statistics : Helping you measure risk, mine data to find valuable connections and insights, test conclusions and make reliable forecasts 4. Mathematical modelling 5. Complex algorithms 6. Visualisation 7. Neural networks 8. Pattern recognition 9. Data mining, Data warehousing.
OR can be used to support an indefinite number of business decisions.
Typical application of OR • Capital Budgetting • Asset allocation • Fraud prevention, Anti money laundering