Introduction To QA Additional Note

MBA program
Quantitative Analysis for Decision Making

Names of Operations Research
Operations Research = Management Science = Quantitative Analysis

 Alternative Names:
 Operational Research
 Operations Analysis
 Quantitative Analysis
 Quantitative Methods
 Systems Analysis
 Decision Analysis
 Decision Science
Introduction to Management Science
1.1. DEFINITION
Because of the wide scope of application of operations research, giving a precise
definition is difficult. Operations Research is defined by many authors in different
ways. However, a few definitions of OR are given below.
Management science is a scientific approach to solving management problems.
Management science is the application of a scientific approach to solving
management problems in order to help managers make better decisions. As
implied by this definition, management science encompasses a number of
mathematically oriented techniques that have either been developed within the
field of management science or been adapted from other disciplines, such as the
natural sciences, mathematics, statistics, and engineering.
Defn .....
 “Operations Research is a systematic analysis of a problem through
scientific methods, carried out by appropriate specialists, working
together as a team, constituted at the instance of management for the
purpose of finding an optimum and the most appropriate solution, to
meet the given objective under a given set constraints.”
QA/MS/OR is the application of the scientific method to the study of
the operations of large, complex organizations or activities.
QA/MS/OR is the application of the scientific method to the analysis
and solution of managerial decision.
Defn ....
Management science techniques can be applied to solve problems in different
types of organizations, including services, government, military, business and
industry, and health care.
Management science can be used in a variety of organizations to solve many
different types of problems.
• Management science also involves the philosophy of approaching a problem in
a logical manner (i.e., a scientific approach). The logical, consistent, and
systematic approach to problem solving can be as useful (and valuable) as the
knowledge of the mechanics of the mathematical techniques themselves. This
understanding is especially important for those readers who do not always see
the immediate benefit of studying mathematically oriented disciplines such as
management science.
Therefore, Management science encompasses a logical approach to problem
solving.
Cont’d
Definition
In general, QA/MS/OR can be defined as the:
 Application of SCIENTIFIC METHOD

 Study of LARGE & COMPLEX SYSTEMS
 Analysis of MANAGERIAL PROBLEMS, or
 Process of Finding OPTIMAL SOLUTION
Meaning of Operations Research:
From the concept and definition given above, Operations Research is:
1. The application of scientific methods, techniques and tools to the problem to
find an answer.
2. A management tool in the hands of a manager to take a decision
3. A scientific approach to decision making process
4. An “applied research” aims at finding a solution for an immediate problem
facing a society, industry or a business enterprise. This is not “fundamental
research”
5. A decision-oriented research, using scientific methods, for providing
management a quantitative basis for taking decision regarding operations under
its control
6. Applied decision theory. It uses scientific, mathematical and logical means to
take decisions.
1.2. Brief History of Operations Research
 During World War II – Operations Research created as a discipline.
o To deploy resource in most economical and efficient ways- military operations.

• It is generally agreed that operations Research came is into existence as a
discipline during World War II when there was a critical need to manage scarce
resources. The term “Operations research” was coined as a result of research
on military operations during this war.
• Therefore, group of individuals who collectively were considered specialists in
mathematics, Economics, statistics and probability theory, engineering,
behavioral, and physical science were formed as special unit within the armed
forces to deal with strategic and tactical problems of various military operations.
• The objective was the most effective utilization of most limited military
resources by the use of quantitative techniques.
Cont’d
• After the war ended, scientists who had been active in the military
OR groups made efforts to apply the operations research approach
to civilian problems, related to business, industry, research and
development, and even won Nobel prizes when they returned to
their peacetime disciplines.
• As the war ended and the mathematical models and techniques that
were kept secret during the war began to be released, there was a
natural inclination to test their applicability to business problems.
• At the same time, various consulting firms were established to apply
these techniques to industrial and business problems, and courses
in the use of quantitative techniques for business management
began to surface in American universities.
1.3. Management Science Modeling Techniques in Practice
There are various techniques used in O.R. Some of these are listed
here:
• Probability theory
• Linear Programming
• Transportation algorithm
• Assignment problems
• Queuing Theory
• PERT/CPM Method etc

Introduction To QA Additional Note

Uploaded by

Copyright:

Available Formats

Introduction To QA Additional Note

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Introduction To QA Additional Note

Uploaded by

Copyright:

Available Formats

MBA program

Quantitative Analysis for Decision Making

Operations Research = Management Science = Quantitative Analysis

 Application of SCIENTIFIC METHOD

 During World War II – Operations Research created as a discipline.

o To deploy resource in most economical and efficient ways- military operations.

You might also like