quantitative techniques- operational research
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TRANSCRIPT
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