What is Operation Research?
Operations research (OR) is an analytical method of problem-solving and decision-making that is useful in the management of organizations. In operations research, problems are broken down into basic components and then solved in defined steps by mathematical analysis.
Recognition and Definition of the Problem
• What are the objectives?
• Is the proposed problem too narrow or too broad?
• What data should be collected and how it will be collected?
• How do different components of the system interact with each other?
Formulation and Construction of the Model of the Problem
• What kind of models should be used
• Is the model accurate or too complex?
Types of Model
• Iconic model
• Analog model
• Mathematical model
Solution of the Model
• Do outputs match current observations for current inputs?
• Are outputs reasonable?
• Could the model be erroneous?
Interpretation, Validation and Sensitivity Analysis of the Model
• Are the results intuitively acceptable?
• What if there are conflicting objectives?
• What does make a difference in the decision?
Implementation of the Solution
• Users must be trained on the new system
• System must be observed over time to ensure it works properly
Requirements of a Good Operations Research Solution (Levin, Rubin, Stinson, & Gardner, 1992)
• It should be technically appropriate
• It should be reliable
• It should be economically viable
• It should be behaviorally appropriate
Operation Research 