Characteristics (Features) of Operation Research

Main characteristics of operations research (O.R.) are follows:

(i) Inter-Disciplinary Team Approach:

This requires an inter-disciplinary team including individuals with skills in mathematics, statistics, economics, engineering, material sciences, computer etc.

(ii) Wholistic Approach to the System:

While evaluating any decision, the important interactions and their impact on the whole organisation against the functions originally involved are reviewed.

(iii) Methodological Approach:

O.R. utilises the scientific method to solve the problem

(iv) Objective Approach:

O.R. attempts to find the best or optimal solution to the problem under consideration, taking into account the goals of the organisation.

Methodology of Operation Research:

Operation Research, is a scientific approach for decision-making, and therefore must follow following steps:

1. Formulating the Problem:

The problem must be first clearly defined. It is common to start the O.R. study with tentative formulation of the problem, which is reformulated over and again during the study. The study must also consider economical aspects.

While formulating the O.R. study, analyists must analyse following major components:

(i) The environment:

Environment involves physical, social and economical factors which are likely to affect the problem under consideration. O.R. team or analysts must study the organisation contents including men, materials, machines, suppliers, consumers, competitors, the government and the public.

(ii) Decision-makers:

Operation analyst must study the decision-maker and his relationship to the problem at hand.

(iii) Objectives:

Considering the problem as whole, objectives should be defined.

(iv) Alternatives:

The O.R. study determines as to which alternative course of action is most effective to achieve the desired objectives. Expected reactions of the competitors to the alternative must also be considered.

2. Deriving Solution:

Models are used to determine the solution either by simulation or by mathematical analysis. Mathematical analysis for deriving optimum solution includes analytical or numerical procedure, and uses various branches of mathematics.

3. Testing the Model and Solution:

A properly formulated and correctly manipulated model is useful in predicting the effect of changes in control variables on the overall system effectiveness. The validity of the solution is checked by comparing the results with those obtained without using the model.

4. Establishing Controls over the Solution:

The solution derived from a model remains effective so long as the uncontrolled variables retain their values and the relationship. The solution goes out of control, if the values of one or more variables vary or relationship between them undergoes a change. In such circumstances the models need to be modified to take the changes into account.

5. Implementing the Solution:

Solution so obtained should be translated into operating procedure to make it easily understandable and applied by the concerned persons. After applying the solution to the system, O.R. group must study the response of the system to the changes made.