Quantitative techniques- operational research

INTERNATIONAL COLLEGE FOR GIRLSINTERNATIONAL COLLEGE FOR GIRLS Project on Project on

Operational Research- I Operational Research- IBBM- 308BBM- 308

By:-By:- Anika AgarwalAnika Agarwal

BBM Sec-CBBM Sec-C Sem- IIISem- III

ICG/2009/8973ICG/2009/8973

QUANTITATIVE TECHNIQUESQUANTITATIVE TECHNIQUES

Operational ResearchOperational Research

DEFINITIONDEFINITION Operation research is a Operation research is a

scientific approach to scientific approach to problems solving for problems solving for management.management.

‘‘Operation’ implies some Operation’ implies some action applied to any area of action applied to any area of interest and ‘Research’ means interest and ‘Research’ means some organized process of some organized process of getting information about the getting information about the problem environment.problem environment.

MODELS

ANALOGUE DETERMINISTIC

ICONIC PROBABILISTIC

SYMBOLIC COMBINED

HEURISTIC

ICONIC (PHYSICAL) MODELICONIC (PHYSICAL) MODEL - Pictorial representation- Pictorial representation - Look like real thing- Look like real thing - Concrete, special, easily under stable- Concrete, special, easily under stable - Ex.- Ex. toy aero plane, photograph, globe etc. toy aero plane, photograph, globe etc.

ANALOGUE (SCHEMATIC) MODELANALOGUE (SCHEMATIC) MODEL - No look alike aspect- No look alike aspect - Properties are used to represent- Properties are used to represent - Ex.- Ex. map, organizational chart. map, organizational chart.

DETERMINISTIC MODELDETERMINISTIC MODEL - All parameters are fixed- All parameters are fixed - Ex.- Ex. linear programming model linear programming model..

SYMBOLIC (MATHEMATICAL) MODELSYMBOLIC (MATHEMATICAL) MODEL - Mathematical symbols and functions are used- Mathematical symbols and functions are used - Abstract and more useful- Abstract and more useful - Communication is clearer- Communication is clearer

COMBINED ANALOGUE AND MATHEMATICAL MODELCOMBINED ANALOGUE AND MATHEMATICAL MODEL - Use of mathematical models- Use of mathematical models

HEURISTIC MODELHEURISTIC MODEL - Use rules and guidelines- Use rules and guidelines - Solve problems on basis of past experience- Solve problems on basis of past experience - Creativity and experience- Creativity and experience

PROBABILISTIC MODELPROBABILISTIC MODEL - Used in situations where consequences cannot be predicted- Used in situations where consequences cannot be predicted - Also known as- stochastic or chance models- Also known as- stochastic or chance models - Ex - Ex waiting lines waiting lines

APPROACHESAPPROACHES METHODICAL APPROACHMETHODICAL APPROACH - Based on scientific methods, principles,- Based on scientific methods, principles,

tools, techniques for solving a problemtools, techniques for solving a problem

- Obtaining optimal results- Obtaining optimal results

- Systematic method- Systematic method

OBJECTIVE APPROACHOBJECTIVE APPROACH - Ensures desirability for the organization - Ensures desirability for the organization

profitabilityprofitability

WHOLISTIC APPROACHWHOLISTIC APPROACH - Every aspect of the problem is studied.Every aspect of the problem is studied.

SIGNIFICANCESIGNIFICANCE Provides solution for various business Provides solution for various business

problemsproblems - Profit maximization- Profit maximization - Cost minimization- Cost minimization

Helps in planningHelps in planning - Depends on demands- Depends on demands - Develop scientific basis- Develop scientific basis

Provides help in optimum resource Provides help in optimum resource allocationallocation

- Allocates resources- Allocates resources - Adopted by modern managements- Adopted by modern managements

LINEAR PROGRAMMING

RATIOMETHOD

SIMPLEXMETHOD

WAITINGLINE

GAMETHEORY

TECHNIQUES

LINEAR PROGRAMMINGLINEAR PROGRAMMING - Mathematical device- Mathematical device - Optimum use of resources- Optimum use of resources - Enhance the profitability- Enhance the profitability - Important techniques for - Important techniques for

optimizationoptimization

GAME THEORYGAME THEORY - Develop during world war II - Develop during world war II

by Jon Von Newmannby Jon Von Newmann - Two competitors, two - Two competitors, two

opponentsopponents - Efforts are put up - Efforts are put up - Maximize the profits and - Maximize the profits and

minimize the losesminimize the loses

WAITING LINE OR QUEING THEORYWAITING LINE OR QUEING THEORY - Most difficult to apply- Most difficult to apply - Minimizes the waiting time- Minimizes the waiting time - Reduces the total cost of time- Reduces the total cost of time - Ex - Ex grocery stores, medicine stores, railway grocery stores, medicine stores, railway

stations, banks, cinema halls.stations, banks, cinema halls.

SIMPLEX METHODSIMPLEX METHOD - Used to find the optimum solution of business - Used to find the optimum solution of business

problemsproblems - Ex - Ex industries, banks, financial institutions. industries, banks, financial institutions. - Also known as ‘iterative method’ - Also known as ‘iterative method’ maximum maximum

or minimum value of objective function will be or minimum value of objective function will be arrived through repetitive drawls of ‘simplex arrived through repetitive drawls of ‘simplex tables’.tables’.

RATIO METHOD OF ANALYSISRATIO METHOD OF ANALYSIS - Obtained by dividing one number into - Obtained by dividing one number into

anotheranother - Used by management for planning, - Used by management for planning,

organizing, controlling, coordinationorganizing, controlling, coordination - Accurate and used effectively.- Accurate and used effectively.

APPLICATIONSAPPLICATIONS

AGRICULTUREMININGMEDICALBANKSPLANNINGINDUSTRIESBUSINESS

COSTLYOPERATION

COMBINING TWOOR MORE

FUNCTIONS

INTERNALRESISTANCE

PRACTICALAPPLICATION

LIMITATIONS

THANK YOUTHANK YOU