Agarwal & al. ● Operations Research-Contemporary Role in Managerial Decision Making
OPERATIONS RESEARCH - CONTEMPORARY ROLE IN MANAGERIAL DECISION MAKING Sangeeta Agrawal1, KR Subramanian2 & S.Kapoor3
Omkarananda Institute of Management and Technology, Rishikesh-249192 (Uttrakhand), India, 3 Indian Institute of Technology, Roorkee-247667, India
ABSTRACT As the global environment becomes fiercely competitive, Operations Research has gained significance in applications like world-class Manufacturing systems(WCM), Lean production, Six-sigma quality management, Benchmarking, Just-in-time (JIT) inventory techniques. The growth of global markets and the resulting increase in competition have highlighted the need for Operation Research. To survive and lead the today‟s highly competitive and demand driven market, pressure is on management to make economical decisions. One of the essential managerial skills is ability to allocate and utilize resources appropriately in the efforts of achieving the optimal performance efficiently. In some cases such as small-scale low complexity environment, decision based on intuition with minimal quantitative basis may be reasonably acceptable and practical in achieving the goal of the organization. However, for a large-scale system, both quantitative and qualitative (i.e. intuition, experience, common sense) analyses are required to make the most economical decisions. Using Operations Research techniques including Linear Programming, Discrete Event Simulation and Queueing Theory, organization leaders can make high quality decisions. Operations managers are not expected to be experts in any decision science tools; however, he or she must have fundamental knowledge of such tools to acquire right resources and to make the most economically sounding decisions for the company as a whole. Present paper is an attempt to study the importance of Operation research and various techniques used to improve the operational efficiency of the organization.
Operations Research (OR) is one of the popular managerial decision science tools used by profit and nonprofit organizations. As the global environment becomes fiercely competitive, Operations Research has gained significance in applications like world-class Manufacturing systems(WCM), Lean production, Six-sigma quality management, Benchmarking, Just-in-time (JIT) inventory techniques. The growth of global markets and the resulting increase in competition have highlighted the need for Operation Research. In order to be competitive, businesses must meet the challenges present in a global market by offering products and services that offer good value to their customers. Good value is a combination of low cost, high quality, rapid availability and real time information on these. In order to enhance the role of operational research and speed up the process and methodologies of different stakeholders, they should work closely and complement each other‟s effort. In this process, the academicians should take the lead in the design, development and demonstration of sustainable operational research models. Industry should support this initiative and accelerate the transmission of this methodology. This would ensure wealth creation in the short term, and sustainable development in the long term. The government should encourage this initiative by adopting optimized responses. Consequently, optimized policy responses and its implementation would bring about positive changes in the socio political and economic environment. As a result, sustained use of operational research would be a regular feature in the decision making process of the government, industry and the society. Such a wide usage of operational research models by the government, industry and academicians would not only contribute to the discipline but also would contribute to the enhanced quality of life in India. The present paper is an attempt to...