Advantages and
limitations of
operations research
Definition of Operation research
Operations research (OR) is an analytical method of
problem-solving and decision-making that is helpful in the
administration of organizations. In operations research,
issues are broken down into essential segments and then
solved in defined steps by mathematical analysis.
OPERATIONS RESEARCH USES (ROLE)
• Operations research plays an important role in almost all areas of business decisions.
Some problems where operational research (OR) approach can be used:
1)Finance, Budgeting and Investments
2)Marketing
3) Purchasing, Procurement and Exploration
4)Production Management
5)Personnel Management
6)Research and Development
ADVANTAGES OF OR
• Better Coordination(OR plays a major role in Overall approach. So it easily coordinate the
decision taken by different department in an organization)
• Improves Productivity(It helps to choice, area and size of the stockrooms, Factories etc..
It helps in stock control. It helps underway arranging and control. It likewise help in labor
arranging. It utilizes scientific and measurable methods to enhance by and large
profitability)
• Effective Decisions (Better and Quick choice assesses hazard and return of choices)
• Facilities Control(it discovers and right the deviation in the exhibitions)
Limitations of OR
• In the quantitative analysis of operations research, specific assumptions and
estimates are made for assigning quantitative values to factors included. If
such estimates are wrong, the result would be similarly misleading.
• It is not a substitute for the entire process of decision making.
• A knowledge of few ideas of mathematics and statistics is essential for
adoption of quantitative examination by the managers.
• Immaterial elements of human behaviour cannot be measured precisely and
all the examples of relationships among the elemets may not be covered.