Operational Research Approach

Operational Research Approach

1. 1. Problem Recognition

2. 2. Problem Structuring and Definition

3. 3. Modelling and Analysis

   • Analysis
     • Qualitative Analysis - soft OR based on the manager's judgement and experience
     • Quantitative Analysis - based on quantitative facts or data, where objectives, consstraints etc are expressed with mathematical expression
       • + Problem is complex
         • WHY QUANTITATIVE ANALYSIS IS CHOSEN
       • + Problem is very important
       • + Problem is new
       • + Problem is very repetitive
       • Quantitative Analysis Process
         • 1. Model Development
           • Iconic Models - physical replicas, scalar representation of objects
           • Analogue Models - physical in form, but do not resemble the object modelled
           • Mathematical Models - modelled through mathematical formulas and expression
             • Determinitic Model - if all uncontrollable inputs to the model are known and cannot vary
             • Stochastic Model - if any uncontrollable variables are uncertain and subject to vary
           • Less expensive, less time and less risk
             • COST?BENEFIT CONSIDERATIONS: cost is the most important thing if a model is worth it
         • 2. Data Preparation
           • Objective Function - describes the problem's objective (maximising and minimising costs)
           • Uncontrollable Inputs - environmental factors that are not under the control of the decision maker
           • Decision Variables - controllable inputs, decision maker's responsibility
         • 3. Model Solution
           • Optimal Solution: the best output, gives the maximum value for the objective function and satisfies the constraints
           • Feasibility - if the values of the decision variables meets the contraints
         • 4. Report Generation

4. 4. Solutions and Recommendation

5. 6. Implimentation

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