Operations Research

Introduction:

Management deals with reality that is at once complex, dynamic, and multifaceted. It is neither possible nor desirable, to consider each and every element of reality before deciding the courses of action. It is impossible because of time available to decide the courses of action and the resources, which are limited in nature. More over in many cases, it will be impossible for a manager to conduct experiment in real environment.

 

Characteristics of a Good Model

1.       The number of parameters considered in a model should be less to understand the problem easily.

2.       A good model should be flexible to accommodate any necessary information during the stages of building the model.

3.       A model must take less time to construct.

4.       A model may be accompanied by lower and upper bounds of parametric values.

 

 Steps in Constructing a Model

1.       Problem environment analysis and formulation: One has to study the system in all aspects, if necessary make relevant assumptions, have the decision for which he is constructing the model in mind and formulate the model.

2.       Model construction and assumptions: Identify the main variables and constraints and relate them logically to arrive at a model.

3.       Testing the model: After the formulation, before using check the model for its validity.