Important features of Operation Research
Understanding the salient features is not much difficult after comprehending the fundamentals of Operation Research.
- Operation Research both as an Art and a Science
Scientific orientation of Operation Research is due to the inherent approach and scientific techniques which it uses to solve its problems. But it is only Art aspect which is used for implementing the decision for the entire company.
Operation Research believes in discovering apt solutions for organisation related problems instead of experimenting with various methodologies. OR considers the importance of human factor which is seen as an utmost necessary factor for executing any problem solving method.
- Administrative decision making
All business houses and industries exist to make financial gain. To make such profits, an administrative department of a company has to make aproper decision which can have a great impact on the profit margin of that company.
The generation of profits by non-business companies like NGO’s,educational institutions, hospitals and many others is earned by increasing the outputs and decreasing the inputs. This is achieved by a strategised management which is both efficient and effective. Generation of various alternatives and choosing the best option according to that situation isdefinitely a correct procedure of decision-making. This correct choice selection is made with the help of Operation Research.
- Utilisation of Information Technology (IT)
Help of Information Technology is taken extensively by Operation Research to solve complicated mathematical problems. This is because decision makingapproach of Operation Research is directly dependent on the extensive operation of computers.
- System Approach
As it is already clear from the theoreticalmodel of Operation Research, it is a system approach. All departments and sub-systems of a company areincorporated by OR.This methodology affects the company as a whole.
The use of Operation Research is not considered as proper if only a certain part of a company is benefitted from its optimising result.The management of a company should understand the effect and consequences before they apply this technique of Operation Research.
- Co-relative Approach
A company has to face various issues while doing business. Some of the problems are associated with engineering, economics, human resource management,infrastructure correlated with markets, and so on.
The members of the Operation Research team should be constituted with representatives belonging from variousbackgroundslike that of management, engineering,science, and company required disciplines. If an organisation wants to resolve problems in diverse fields, its OR team should consider the above point. Only after following a correct methodology, a company can implement beneficial decision for themselves.
- Quantitative technique
Operation Research is seen as a quantitative technique because it obtains rational quantitative solutions to the administrative problems using mathematical models. Utilisation of Operation Researchinputs by the administrative body is done with the help of quantitative analysis of the specific issue and then acquiring the best solution in the company’s interest.
Links of Previous Main Topic:-
- Introduction and types of dividend
- Concept of cost of capital
- Capitalization meaning
- Concepts of working capital
- Concept of capital expenditure
- Learning objectives and chapter outline
Links of Next Finance Topics:-
- Types of operation research models
- Methodology of operation research
- Tools of operation research
- Important application of operation research
- Pitfalls in the use of operations research for decision making
- Some applications of linear programming
- Review and discussion questions limitations of operations research
- Linear programming learning objectives and outline of chapter
- Introduction learning objectives
- Duality in linear programming
- Learning objectives
- Learning objectives and chapter outline in assignment model