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Scope of Operation Research

• Updated on  
• Aug 19, 2022

What is the scope of operational research? To answer this, we will first have to understand what operations research means. Operational Research can be simply formulated as the science of rational decision-making along with the study of the synthesis of intricate problematic situations. Thus, the nature of operations research is purely scientific as it aims at determining the systematic behaviour and hence optimizing the results. The scope and applications of operations research empower decision-making in those business aspects where there is a larger concern of allocation of scarce resources especially like capital, investment, labour, etc.

This Blog Includes:

Scope and application of operations research, nature of operations research, limitations of operations research, characteristics of operations research, phases of operation research, where is operation research used, methodologies, roles & responsibilities in operation research , defence services, agriculture, industrial sector, scope of operational research: job profiles .

Operation Research centrally focuses on simplifying complicated business problems into well-defined mathematical constructs and works specifying expected behaviour as well as goals. The key application of Operations Research is that it facilitates decision making in those aspects of a business where resource allocation is paramount, i.e. capital, labour, time and other business resources. Given that it is rooted in computer science and analytics, there is an immense scope of operation research in every business enterprise.

Here are the key areas of the scope and application of operations research:

• Healthcare Management and Hospital Administration
• Financial Management , Budgeting and Investments
• Government Development / Public Sector Units
• Energy and Environment
• Marketing and Revenue Management
• Telecommunication Networks
• Military Defences
• Supply Chain Management
• Purchasing / Procurement / Logistics
• National Plans / Budgets

Find out everything about Operations Management MBA !  

When it comes to the nature of operations research, business experts and scholars describe it as a science as operations research takes a mathematical and scientific approach to decision-making and problem-solving. Let’s understand the nature of operations research through these key definitions:

• “Operations Research is a scientific approach to problem-solving for executive management.” – H.M Wagner
• “Operations Research is the systematic, method oriented study of the basic structure, characteristics, functions and relationships of an organization to provide the executive with a sound, scientific and quantitative basis for decision making.” – E.L. Arnoff and M.J. Netzorg
• “Operations Research is an aid for the executive in making his decision by providing him with the needed quantitative information based on the scientific method of analysis.” – C. Kittel
• “O.R. is an experimental and applied science devoted to observing, understanding and predicting the behavior of purposeful man-machine systems and operations research workers are actively engaged in applying this knowledge to practical problems in business, government and society.” – Operations Research Society of America

There are certain limitations and disadvantages of operations research that you must also know about. Here are the limitations of operations research:

• Operation Research can be costly in terms of implementation as well as using the best technology and tools for simulations.
• Operation Research also requires a team of analysts or experts to carry out every step of the process and thus needs a team of properly qualified professionals to find the best results and solutions.
• Operation Research also relies heavily on technology as software applications and tools play an imperative part in data analysis and predictions.

Given below are the 3 main characteristics of Operations Research, i.e. Optimization, Stimulation and Probability & Statistics.

Optimization The objective of Operations Research is to provide better performance in any given situation. The process of doing this involves a lot of data collection and analysis of possible outcomes. The process of optimization involves a critical analysis of all the available options and selecting the highly relevant ones. 

Simulation Before you move on with selected options or methods to improve the overall result, you must be sure that the selected method is going to be beneficial. This part is ensured by the process of simulation.

Probability and Statistics Mathematical algorithms are the best way to evaluate potential risks and predict the possible outcomes beforehand. Thus, Operation Research involves intensive use of statistical and mathematical approach to cover all the circumstances.

There are three phases in an operation research study –

• Determining the operation and objectives
• It also includes determining the effectiveness of different steps, the type of problem, its origin and the causes behind it.
• Formulating the hypothesis and models
• Next step is analyzing the information collected and verifying the hypothesis.
• The last step in this phase is the production and generation of results and considering all the other alternatives.
• Giving recommendations for the solution to the problem including the assumptions, scope, limitations and other alternatives.
• Lastly, the solution has to be put to work.

Here are the most common problems that can be solved by Operation Research:

When operation research is carried out in a business enterprise, there are three major steps followed to complete the OR process. These steps are:

• Judgement : At this phase, the clarification of the problem happens. First, the problem is defined in a simple manner and then the objectives and ways for measuring the final results and success are also determined.
• Research : Once you have defined what the problem is, the research phase carries out the accumulation of data about the problem and then determining the hypothesis, validating the hypothesis and then developing the model(s) and thus making possible predictions.
• Action : After getting the predictions, results are incorporated and the necessary improvements and changes take place.

If you imagine yourself working in the field of Operational Research, there are many essential responsibilities that you will be expected to handle. Hence, you need to be well-versed with the qualities and attributes required to apprehend critical situations and problems. So, before moving to the scope of Operation Research, take a look at the following roles and responsibilities that you will be carried out under varied career profiles. 

• To analyze and devise the plan using statistical analysis, predictive modelling, simulations and methods to exempt the organizations from business problems. 
• To help organisational teams with in-depth research on various topics. 
• Collect the required information for the company from co-workers and utilize it in situations to come up with decisions. 
• Preparing reports by performing critical analyses of the key matrices. 
• Support the company with advantageous financial decisions while comprehending the budgets.

Find our how to make a career in Operational Research !

Career Scope of Operation Research: Employment Areas

With a degree in Operation Research or its related field, candidates can enter many employment areas. These leading job destinations can carve your career and provide you with a high-end growth ahead. To help you understand the scope of operation research, let’s elaborate some of the top-notch job-sectors that you can explore.

• Logistics and Supply Chain Management
• Marketing Management

There are several departments in the defence services like administrations, training, supply etc. which involves in-depth knowledge of operations. To perform warfare tasks in the Army, Navy, Air Force with promptness, there is always a constant demand for candidates with a degree in operation research. Thus, in the defence services, there is a wide scope of operation research as candidates get the opportunity to work in a dynamic environment and under higher roles facilitating the formulation of policies and strategies.

Being brought up in a country like India where agriculture is a colossal part of the economy, we often think that this domain is only for farmers or rather scientists. But, with the dire need to ensure optimum utilization of resources, there is a greater scope of operation research in this field. With sky-rocketing population, operation research can ensure optimization in agriculture and potential graduates in this field can avail the opportunities to work as research assistants under this domain.

In the advent of globalization, the industrial sector is experiencing an upheaval across the globe. To frame and handle the ever-rising demands of the organizations, candidates with brainstorming abilities are selected for various profiles in operation research. You can also opt for a specialised role like an Operational Research Analyst, who is expected to tackle the upcoming discrepancies in a business.

Have a look at the Job Oriented Courses After MBA

In the above-mentioned sectors, there is a multitude of career profiles available for those wanting to kickstart their career in operation research. Below we have brought you some of the key job roles which depict the varied scope of operation research: 

• Operations Analyst   
• Research Analyst 
• Operation Research Analyst 
• Project Manager 
• Data Analyst
• Consultant 
• System Analyst 
• Senior Analyst 
• Operations Officer
• Project Analyst 
• Quality Assurance Analyst

It is the research process from which management provides support for their decisions. While the name of this method is relatively new, the method used for this is not a new one. Operation Analysis is concerned with applying the concepts and techniques of science to strategic issues.

In its latest years of organized growth, O.R. Several research proceedings for the military, government and industry have been successfully resolved. In most developing countries in Asia and Africa, the underlying issue is that poverty and hunger should be removed as soon as possible. There is also a tremendous opportunity for economists , statisticians, managers, politicians and technicians working in a team to address this issue through an O.R. Approaching.

Over the next ten years, the employment of operational research analysts is expected to rise by 25 percent, far faster than the average for all occupations. As technology progresses and businesses are pursuing efficiency and cost savings, the market for analysis of operations research should continue to rise. Therefore, it is a good career option

Here are the advantages of Operation Research – 1. Effective Decisions 2. Better Coordination 3. Facilitates Control 4. Improves Productivity

Hence, we hope that this blog has helped you understand the career scope of operation research as well as an array of opportunities that you can discover in this specialised domain. If you are allured by the fascinating above-listed job profiles and want to start a career in this field, then you should definitely opt for an academic degree to understand the intricacies of this domain. Take the help of Leverage Edu ’s AI-based tool to browse through a plethora of specialised programs in this field and find the best course and university combination that can equip you with the required knowledge and exposure to establish your career in Operation Research.

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Advantages & Limitations of Operations Research

Operations research is a robust tool and offers directions in making the best decisions possible given the data available.

Advantages of Operations Research

Better Systems: Often, an O.R. approach is initiated to analyze a particular problem of decision making such as best location for factories, whether to open a new warehouse, etc. It also helps in selecting economical means of transportation , jobs sequencing, production scheduling, replacement of old machinery, etc.

Better Control: The management of large organizations recognize that it is a difficult and costly affair to provide continuous executive supervision to every routine work. An O.R. approach may provide the executive with an analytical and quantitative basis to identify the problem area. The most frequently adopted applications in this category deal with production scheduling and inventory replenishment.

Better Decisions: O.R. models help in improved decision making and reduce the risk of making erroneous decisions. O.R. approach gives the executive an improved insight into how he makes his decisions.

"If you don't actively attack the risks, they will actively attack you." - Tom Gilb

Better Co-ordination: An operations-research-oriented planning model helps in co-ordinating different divisions of a company.

Limitations of Operations Research

Dependence on an Electronic Computer: O.R. techniques try to find out an optimal solution taking into account all the factors. In the modern society, these factors are enormous and expressing them in quantity and establishing relationships among these require voluminous calculations that can only be handled by computers.

Non-Quantifiable Factors: O.R. techniques provide a solution only when all the elements related to a problem can be quantified. All relevant variables do not lend themselves to quantification. Factors that cannot be quantified find no place in O.R. models.

Distance between Manager and Operations Researcher: O.R. being specialist's job requires a mathematician or a statistician, who might not be aware of the business problems. Similarly, a manager fails to understand the complex working of O.R. Thus, there is a gap between the two.

Money and Time Costs: When the basic data are subjected to frequent changes, incorporating them into the O.R. models is a costly affair. Moreover, a fairly good solution at present may be more desirable than a perfect O.R. solution available after sometime.

Implementation: Implementation of decisions is a delicate task. It must take into account the complexities of human relations and behaviour.

Operations Research Uses (Role)

Operations research plays an important role in almost all areas of business decisions. Some problems where operational research (OR) approach can be used:

1. Finance, Budgeting and Investments

• Credit policy analysis.
• Cash flow analysis.
• Dividend policies.
• Investment portfolios.

2. Marketing

• Product selection, timing, etc.
• Advertising media, budget allocation.
• Number of salesman required.
• Selection of product mix.

3. Purchasing, Procurement and Exploration

• Optimal buying and reordering.
• Replacement policies

4. Production Management

• Location and size of warehouses, factories, retail outlets, etc.
• Distribution policy.
• Loading and unloading facilities for trucks, etc.
• Production scheduling.
• Optimum product mix.
• Project scheduling and allocation of resources.

5. Personnel Management

• Selection of suitable personnel.
• Recruitment of employees.
• Assignment of jobs.
• Skills balancing.

6. Research and Development

• Project selection.
• Control of R&D projects.
• Reliability and alternative design.

O.R. is a relatively new academic discipline. It has its origin in World War II and soon became very popular throughout the world. Developing appropriate mathematical models for situations, processes, systems is the basic essence of O.R. study. Linear programming , dynamic programming , game theory , simulation , etc. are some of the models & techniques that are used in O.R. There is role for O.R. in almost all areas of business decisions.

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INTRODUCTION TO OPERATIONS RESEARCH

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Operations Research

Oct 05, 2014

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Operations Research. An Introduction. Introduction to Operations Research. Operations Research, in simple terms, is the research of operations. An operation may be called a set of acts required for the achievement of a desired outcome.

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Operations Research An Introduction

Introduction to Operations Research • Operations Research, in simple terms, is the research of operations. • An operation may be called a set of acts required for the achievement of a desired outcome. • Operations research could be thought of as a systematized effort to solve a given problem through careful investigation. • OR is a systematic method consisting of stating the problem in clear terms, collecting facts and data, analyzing them and reaching certain conclusions in the form of solution to the problem.

Origin • During World War II, the military management in England called a team of scientists to study the strategic and tactical problems of air and land defence. • The objective was to find out the most effective allocation of limited military resources to the various military operations and to the activities within each operation. • This group of scientists formed the first OR team.

Development • The encouraging results of these efforts led to the formation of more such teams in British armed services and the use of such scientific teams soon spread to the United States, Canada and France. • The new revolution began around 1940s when electronic computers became commercially available and these were used for OR complex computational problems. • In 1950, OR was introduced as a subject for academic study in American Universities. • To increase the impact of OR the Operations Research Society of America was formed in 1950. • In 1953, the Institute of Management Science (IMS) was established. In the same year Other countries followed suit to establish International Federation of OR societies.

OR in India • OR came into existence with the opening of an OR unit in 1949 at the Regional Research Laboratory at Hyderabad. • An OR unit was established in 1953 in the Indian Statistical Insititute, Calcutta to apply OR methods in National Planning and Survey. • Operations Research Society of India (ORSI) was formed in 1957 and its first conference was held in Delhi in 1959. • The first MSc course on OR was started by Delhi University in 1963. • At the same time, Institutes of Management at Calcutta and Ahmedabad introduced OR in their MBA courses.

Definitions • OR is a scientific method of providing executive departments with a quantitative basis for decisions regarding the operations under their control. – Morse & Kimball • OR is the art of giving bad answers to the problems, in which otherwise, worse answers are given. – Thomas L. Saaty • OR is the application of scientific methods to problems arising from operations involving integrated systems of men, machines and materials. It normally utilizes the knowledge and skill of an inter-disciplinary research team to provide the managers of such systems with optimum operating solutions. – Fabrycky and Torgersen

Scope of Operations Research • In Agriculture: • a) optimum allocation of land to various crops in accordance with the climatic conditions • b) optimum distribution of water from various resources like canal for irrigation purposes. • In LIC: • a) what should be the premium rates for various modes of policies • b) how best the profits could be distributed in the cases of with profit policies, etc… • In Finance: • a) to maximize the per capita income with minimum resources • b) to determine the best replacement policies etc. • In Industry: • OR is used to the industry in deciding optimum allocation of various limited resources such as men, machines, material, money, time etc. to arrive at the optimum decision.

Scope of Operations Research • In Marketing: • a) where to distribute the products for sale so that total cost of transportation is minimum • b) the size of the stock to be maintained to meet the future demand • c) how to select the best advertising media with respect to time, cost, etc… • In Personal Management: • a) to appoint the most suitable persons on optimum salary • b) to determine the best age of retirement for the employees • c) to find out the number of persons to be appointed when the work load is seasonal • In Production Management: • a) to find out the number and size of the items to be produced • b) in scheduling and sequencing the production run by proper allocation of machines • c) in calculating the optimum product mix • d) to select, locate and design the sites for the production plants.

Techniques of OR • Distribution (Allocation) Models • Production / Inventory Models • Waiting Line Models • Markovian Models • Competitive Strategy Models (Game Theory) • Network Models • Job Sequencing Models • Replacement Models • Simulation Models

Methodology of OR • Formulate the Problem • Model Building • Physical models • Iconic models • Analogue models • Symbolic models • Obtaining Input Data • Solution of Mode • Feasible & infeasible solutions • Optimal & non-optimal solutions • Unique & multiple solutions • Model Validation • Implementation

Types of Mathematical Models • Quantitative versus qualitative • Standard versus custom made • Probabilistic versus deterministic • Descriptive versus optimising • Static versus dynamic • Simulation versus non-simulation

Characteristics of OR • System or Executive Orientations of OR • The Use of Inter-disciplinary Teams • Application of Scientific Method • Uncovering of New problems • Improvement in the Quality of Decisions • Quantitative Solutions • Human Factors • To Optimize the Total Output

Role of QT in Business & Industry • They provide a tool for scientific analysis • They provide solution for various business problems • They enable proper deployment of resources • They help in minimising waiting & servicing costs • They enable the management to decide when to buy & how to buy • They assist in choosing an optimum strategy • They render great help in optimum resource allocation • They facilitate the process of decision making • Through various quantitative techniques management can know the reactions of the integrated business systems

Limitations of OR • Information Gap • Quantification Techniques • Finite Variables • Limited number of Constraints • Single Objective Function

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Operations Management - Introduction to Operations Research

Limitations of operations research.

OR has some limitations however, these are related to the problem of model building and the time and money factors involved in application rather than its practical utility.

(i) Magnitude of Computation

(ii) non-quantifiable factors, (iii) distance between user and analyst, (iv)time and money costs, (v) implementation, other sugest topic.

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Operations Research

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