CHARACTERISTICS CONSTITUING THE NATURE OF OR

Interdisciplinary team approach Operation research is done by a team of scientists drawn from various discipline such as mathematics, statistics, economics, engineering, physics etc. Each member of the OR team is benefited from the viewpoint of other and collaborative study gives a solution with great chance of acceptance by management.

System Approach OR emphasizes on the overall approach to the system. This characteristics of OR is often referred to as system orientation. The orientation is based on the observation that in the organized systems the behavior of any part ultimately has some effect on every other part. In OR., an attempt is made to take account of all the significant effects and to evaluate them as a whole. OR thus considers the total system for getting the optimum decisions

Helpful in improving the quality of solution Operation research cannot give perfect answers or solutions to the problem. OR simply helps in improving the quality of the solution but does not result in perfect solution.

Scientific method: Operation research involves scientific and systematic approach of complex problems to arrive at the optimum solution. It uses techniques of scientific research.

Goal oriented optimum solution Operation research tries to optimize a well defined function subject to given constraints and as such is concerned with the optimization theory.

Use of models: Operation research uses models built by quantitative measurement of the variables concerning a given problem and also derives a solution from the model using one or more of the diversified solution techniques. A solution may be extracted from a model either by conducting experiments on it or by mathematical analysis.

Requires willing executives: OR does require the willingness on the part of the executive for experimentation to evaluate the costs and the consequences of the alternative solutions of the problem. It enables the decision maker to be objective in choosing an alternative from among many possible alternatives.

Reduce complexity: OR tries to reduce the complexity of business operations and does help the executive in correcting a troublesome function and to consider innovations which are too costly and complicated to experiment with the actual practice. In view of this above, OR must be viewed both as a science and as an art.

MODELS AND MODELING IN OPERATION RESEARCHES A model in OR is a simplified representation of an operation or is a process in which only the basic aspects or the most important features of a typical problem under investigation are considered. The objective of a model is to identify significant factors and interrelationships.

A good model possess the following characteristics: It should be capable of taking into account, new formulation without having any changes in its frame. Assumption made in the model should be as small as possible. Variable used in the model must be less in number ensuring that it is simple and coherent. It should not take much time in its construction for any problem.

ADVANTAGES OF A MODEL

Problems under consideration become controllable. It provides a logical and systematic approach to the problem It provides the limitations and scope of an activity. It helps in finding useful tools that eliminate duplication of methods applied to solve problems. It helps in finding solution for research and improvements in a system.

CLASSIFICATION OF MODELS

The classification of models is done on the following basis: Models by function Models by structure Models by nature of an environment Models by extent of generality

MODELS BY FUNCTION

These models consist of Descriptive models Predictive models and Normative models

Descriptive models: They describe facts and relationships among the various activities of problem. These models do not have an objective function as part of the model to evaluate decision alternatives. In these models, it is possible to get information as to how one or more factors change as a result of changes in other factors.

Predictive models: These are used predictive analytics to create statistical model of future behavior. A predictive model is made up of a number of predictors, which are variable factors that are likely to influence future behavior or results. In marketing, for example, a customer's gender, age, and purchase history might predict the likelihood of a future sale.

Normative models: Prescriptive model which evaluates alternative solutions to answer the question, "What is going on?" and suggests what ought to be done or how things should work according to an assumption or standard. In comparison, a descriptive model merely describes the solutions without evaluating them. Used mainly as a standard for measuring change or performance.

MODELS BY STRUCTURE

Iconic or physical models: They are pictorial representations af real systems and have the appearance of the real thing. Eg: city maps, blue prints, globe etc. These models are easy to observe and describe, but are difficult to manipulate and are not very useful for the purpose of prediction.

Analog Models: The model in which one set of properties is used to represent another set of properties are called analog models. After the problem is solved, the solution is reinterpreted in terms of the original system. These models are less specific, less concrete, but easier to manipulate than ionic models.

Mathematical or symbolic models: They are most abstract in nature. They employ a set of mathematical symbols to represent the components of real system. These variables are related together by means of mathematical equations to describe the behavior of system.

MODELS BY NATURE OF AN ENVIRONMENT

Deterministic models: They are those in which all parameters and functional relationships are assumed to be known with the certainty when the decision is to be made. Linear programming and break-even models are the example of deterministic models.

Probabilistic or stochastic models: These models are those in which atleast one parameter or decision variable is random variable. These models reflect to some extent the complexity of the real world and the uncertainty surrounding it.

MODELS BY THE EXTENT OF GENERALITY

Specific models: When a model presents a system at some specific time, it is known as specific model, if the time factor is not considered, they are termed as static models.. General models: Simulation and Heuristic models fall under the category of general models. These models are used to explore alternative strategies.