Operational Research (OR) is the use of advanced analytical techniques to improve decision making. It is sometimes known as Operations Research, Management Science or Industrial Engineering. People with skills in OR hold jobs in decision support, business analytics, marketing analysis and logistics planning – as well as jobs with OR in the title.
Examples of OR
* Scheduling: of aircrews and the fleet for airlines, of vehicles in supply chains, of orders in a factory and of operating theatres in a hospital. * Facility planning: computer simulations of airports for the rapid and safe processing of travellers, improving appointments systems for medical practice. * Planning and forecasting: identifying possible future developments in telecommunications, deciding how much capacity is needed in a holiday business. * Yield management: setting the prices of airline seats and hotel rooms to reflect changing demand and the risk of no shows. * Credit scoring: deciding which customers offer the best prospects for credit companies. * Marketing: evaluating the value of sale promotions, developing customer profiles and computing the life-time value of a customer. * Defence and peace keeping: finding ways to deploy troops rapidly.
Classifications of Operation Research Models :
1. Classification by degree of abstraction. With then aforesaid liberty in the definition of a model (i.e. it may or may not be a physical construct) whatever we sneak or write or read is after all a model. Surely when we speak or write we describe some event or whatever which though we cannot do perfectly well because of our mastery of the language and the limitations too. For example in the case of a cricket match commentary the commentator who is modelling the palsy for his audience is usually under time limitations. All such models are language models. Business case studies are such models in our4 context.
2. Classification according to Structure.
An iconic model : represents a static event. Characteristics that are not considered in the analysis for which the model is constructed are not included in the model. For example, in the use of a model in the study of the structure of an atom the colour of the model is irrelevant because this particular fact does not afford any scientific study of the atom. Models of automobiles used in the study of a parking problem need is its dimensions i.e., two dimensions (photo blueprints maps) or three dimensions (small airplane globe atom). When a model surpasses the third dimension it is no longer possible to construct it physically.
Analogue model : An organizational chart is a common analogue model. It represents the relationships existing between the various members of the organization. A man machine chart is also schematic model. It represents a time varying interaction of men and machines ovier a complete work cycle. A flow process chart is another schematic model which represents the other of occurrence of various events to make a product. Contour lines on a map are analogue of the flow of electricity through wires. Similarly demand curves and frequency distribution curves used in statistics are example of analogue models.
Symbolic Models (Mathemaical Models) are those which employ a set of symbols (i.e. letters Numbers etc.) and functions to represent the decision variables and their relationships to describe the behaviour or the system the symbols used generally mathematical or logical in character. They are by far the most widely employed in an O.R. study because of the great deal of complexity associated with an organization.
3. Classification by purpose. Models can be classified by purpose. The purpose of a model may be to describe predict or prescribe. (a) Descriptive models. A descriptive model simply describes some aspects of a situation based on observation survey questionnaire results or other available data the result...