After gathering data or information through various observation which is stated as the first stage of operations research application, then formulation of its problems takes place.This formulation is said to be the most crucial task in operations research application. There are certain questions which may arise here.
- Has the correct problem been identified by the operations research team to find its effective solution of problems?
- Is the problem defined clearly and precisely?
Developing a model which represents real life situation near to precision is a very difficult task.Association of a number of people is required to collect the required data. This process is very expensive, and it takes a lot to time to collect the necessary data. Data is gathered either with the help of previously recorded data or with the help of regular observation.
The behavioural aspect of any person (operations research team member) who executes the task of observation in a system is also affected.This change in behavioural aspect is because of the fact that the employee knows that he or she is regularly monitored.
Another method involves data collection. Although the reference is taken from company’s previous data records, every collected information required for its work is never sufficient nor is itcompletely authentic.
The standard of decision making can be affected by the problem-solving techniques involved in operations research utilises maximum time. Whatever may be the reason, a company’s administration body has to make decisions for their organisation.
But it certainly not acceptable that any decision taken by an organisation is based on anypartial or insufficient information. Even if a company does not use the help of operations researchtechnique which provides a better solution to a problem, it can use an alternative.Any practicable but effective solution can be adopted by a firm if they cannot apply operations research which is an expensive choice in case of both money and time.
Although this self-application of this alternate choice is unethical and risky, the abovestated reasonings makes most of the operations research experts try to find solutions to problems themselves. Companies should definitely prevent these from happening.
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
- Important features of operation research
- Types of operation research models
- Methodology of operation research
- Tools of operation research
Links of Next Finance Topics:-
- 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