Monday, 14 December 2015

Applications of Operations Research - Notes



Scope of Operations Research
            Any problem, simple or complicated, can use OR techniques to find the best possible solution. This section will explain the scope of OR by seeing its application in various fields of everyday life.
In Defense Operations:
            In modern warfare, the defense operations are carried out by three major independent components namely Air Force, Army and Navy. The activities in each of these components can be further divided in four sub-components namely: administration, intelligence, operations and training and supply. The applications of modern warfare techniques in each of the components of military organisations requireexpertise knowledge in respective fields.
             Furthermore, each component works to drive maximum gains from its operations and there is always a possibility that the strategy beneficial to one component may be unfeasible for another component. Thus in defense operations, there is a requirement to co-ordinate the activities of various components, which gives maximum benefit to the organization as a whole, having maximum use of the individual components. A team of scientists from various disciplines come together to study the strategies of different components. After appropriate analysis of the various courses of actions, the team selects the best course of action, known as the µoptimum strategy.
In Industry:
The system of modern industries is so complex that the optimum point of operation in its various components cannot be intuitively judged by an individual. The business environment is always changing and any decision useful at one time may not be so good some time later. There is always a need to check the validity of decisions continuously against the situations. The industrial revolution with increased division of labor and introduction of management responsibilities has made each component an independent unit having their own goals. For example: production department minimizes the cost of production but maximizes output. Marketing department maximizes the output, but minimizes cost of unit sales. Finance department tries to optimize the capital investment and personnel department appoints good people at minimum cost. Thus each department plans its own objectives and all these objectives of various department or components come to conflict with one another and may not agree to the overall objectives of the organization. The application of OR techniques helps in overcoming this difficulty by integrating the diversified activities of various components to serve the interest of the organization as a whole efficiently. OR methods in industry can be applied in the fields of production, inventory controls and marketing, purchasing, transportation and competitive strategies.

Planning:
In modern times, it has become necessary for every government to have careful planning, for economic development of the country. OR techniques can be fruitfully applied to maximize the per capita income, with minimum sacrifice and time. A government can thus use OR for framing future economic and social policies.
Agriculture:
With increase in population, there is a need to increase agriculture output. But this cannot be done arbitrarily. There are several restrictions. Hence the need to determine a course of action serving the best under the given restrictions. You can solve this problem by applying OR techniques.

In Hospitals:
OR methods can solve waiting problems in out-patient department of big hospitals and administrative problems of the hospital organisations.vi)
In Transport:
You can apply different OR methods to regulate the arrival of trains and processing times minimize the passengers waiting time and reduce congestion, formulate suitable transportation policy, thereby reducing the costs and time of trans-shipment.
Research and Development:
You can apply OR methodologies in the field of R&D for several purposes, such as to control and plan product introductions.

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