Operations Research (OR) is a problem-solving and decision-making tool used in various industries to optimize efficiency and profitability. It involves mathematical models, statistical analysis, and optimization techniques. Key methodologies include linear programming, queueing theory, simulation, and decision analysis. OR has evolved significantly since World War II, with applications in transportation, healthcare, finance, and more, enhancing operational systems and strategic decisions.
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Operations Research is an analytical method of problem-solving and decision-making that uses mathematical models and optimization techniques to find efficient solutions in various fields
Emergence during World War II
Operations Research originated during World War II to improve military logistics and strategies, and later expanded to civilian sectors
Contributions and Advancements
Operations Research has evolved with contributions such as the Simplex Method and game theory, as well as advancements in technology
Operations Research has a wide range of applications, including logistics, finance, healthcare, and project management, to improve efficiency and inform strategic decisions
Linear Programming is a mathematical method used in Operations Research to optimize resource allocation and solve various challenges
Deterministic Optimization
Deterministic optimization techniques assume predictability in the system, while stochastic optimization deals with uncertainty
Types of Models
Operations Research uses deterministic and stochastic models, as well as dynamic and static models, to simplify and analyze complex systems
Operations Research also utilizes methodologies such as queueing theory, simulation, and decision analysis to address specific types of problems
Operations Research has a broad spectrum of applications, including transportation, healthcare, and finance, that impact everyday life
Examples of Applications
Operations Research is applied in various industries, such as manufacturing, energy, and finance, to optimize processes and inform decision-making
Inventory Management
Operations Research is used in inventory management to balance stock levels and reduce waste while ensuring product availability
To study Operations Research, one must have a strong foundation in mathematics, statistics, and computer programming, as well as an understanding of key techniques such as linear programming and simulation
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Key components of OR
Mathematical models, statistical analysis, optimization techniques.
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Primary goal of OR
Efficient/profitable operation solutions.
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OR's role in decision-making
Systematic data analysis, predictive models for strategic decisions.
