MEANING OF OR:

OR IN THE MOST GENERAL SENSE,CAN BE

CHARACTERIZED AS THE APPLICATION OF
SCIENTIFIC METHODS,TECHNIQUES AND
TOOLS,TO PROBLEMS INVOLVING THE
OPERATIONS OF A SYSTEM SO AS TO PROVIDE
THOSE IN CONTROL OF THE OPERATIONS WITH
OPTIMUM SOLUTIONS TO THE PROBLEMS.

ACCORDING TO OPERATION RESEARCH

SOCIETY,AMERICA:
OR IS CONCERENED WITH SCIENTIFICALLY
DECIDING HOW TO BEST DESIGN AND OPERATE
MAN-MACHINE SYSTEMS USUALLY REQUIRING
THE ALLOCATION OF SCARCE RESOURCES.
 HISTORY OF OR:
OR CAME INTO EXISTENCE DURING WORLD WAR II
WHEN THERE WAS A NEED TO MANAGE SCARCE
RESOURCES.

 THE TERM OR WAS COINED AS A RESULT OF

“RESEARCH ON MILITARY OPERATIONS “DURING THIS
WAR.
 DURING WAR A GROUP OF SPECIALISTS FROM VARIOUS
FIELDS LIKE
MATHEMATICS,ECONOMICS,STATISTICS,ENGINEERING,
BEHAVOURAL AND PHYSICAL SCIENCE WERE FORMED
AS SPECIAL UNITS WITHIN THE ARMED FORCES TO
DEAL WITH STRATEGIC AND TACTICAL PROBLEMS OF
VARIOUS MILITARY OPERATIONS.
AFTER THE WAR ENDED, SCIENTISTSWHO HAD BEEN
ACTIVE IN THE MILITARY OR GROUPS MADE EFFORTS
TO APPLY OR APPROACH TO CIVILIAN
PROBLEMS,RELATED TO BUSINESS,INDUSTRY,R&D
etc.
DURING 1950,THERE WAS SUBSTANTIAL PROGRESS
IN THE APPLICATION OF OR TECHNIQUES FOR
CIVILIAN ACTIVITIES ALONG WITH INTEREST IN THE
PROFESSIONAL DEVELOPMENT AND EDUCATION IN
OR.
NATURE & SIGNIFICANCE:
OR APPROACH IS PARTICULARLY USEFUL IN
BALANCING CONFLICTING OBJECTIVES WHERE
THERE ARE MANY ALTERNATIVE COURSES OF
ACTION ARE AVAILABLE TO DECISION MAKERS.

 OPTIMAL DECISION MUST BE ONE THAT IS BEST

FOR THE ORGANIZATION AS A WHOLE.IT IS OFTEN
CALLED GLOBAL OPTIMUM.

 A DECISION THAT IS BEST FOR ONE OR MORE

SECTIONS OF THE ORGANIZATION IS USUALLY
CALLED SUBOPTIMUM DECISION.
APPLICATIONS OF OR

FINANCE AND ACCOUNTING

 DIVIDEND POLICIES ,PORTFOLIO MGT,CAPITAL
BUDGETING,COST ALLOCATION AND COST CONTROL
AND FINANCIAL PLANNING.
MARKETING
 SELECTION OF PRODUCT MIX,ADVERTISING,MEDIA
PLANNING,SALES EFFORT ALLOCATION AND
ASSIGNMENT.
PURCHASING,PROCUREMENT AND EXPLORATION
 DETERMINATION OF QUANTITIES AND TIMINGS OF
PURCHASE,BIDDING POLICIES,VENDOR
ANALYSIS,TRANSPORTATION PLANNING
PRODUCTION MANAGEMENT

 PROJECT PLANNING
 FACILITIES PLANNING
 MANUFACTURING PLANNING

PERSONNEL MANAGEMENT
 MANPOWER PLANNING AND RECRUITMENT

 SCHEDULING OF TRAINING

 JOB ASSIGNMENT

 ESTABLISHING EQUITABLE BONUS SYSTEM

GOVERNMENT

 ECONOMIC PLANNING
 NATURAL RESOURCES,SOCIAL PLANNING

 MILITARY,POLICE ,URBAN HOUSING

PROBLEMS
GENERAL MANAGEMENT
 MAKING QUALITY CONTROL MORE
EFFECTIVE
 DECISION SUPPORT SYSTEM,MIS AND
FORECASTING