Characteristics of OR (Features)
The essential characteristics of OR are
1. Inter-disciplinary team approach - The highly optimized solution is found by a group of scientists who are selected from diverse disciplines.
2. To maximize the total output - It attempts to maximize by maximizing the profit and minimizing the loss.
3. Imperfectness of solutions - Enhances the quality of solution.
4. Use of scientific research - It makes use of scientific research to arrive at a optimum solution.
5. Wholistic approach to the system - OR takes all significant related factors and finds the best optimum solution for the total organization.
Management Applications of OR
Some areas of applications are
§ Credit policies, account procedures
§ Cash flow analysis, investment portfolios
§ Physical distribution
§ Manufacturing
§ Maintenance and project scheduling
§ Facilities planning
§ Project selection
§ Reliability and alternative design
§ Determination of area of research and development
§ Product selection, timing
§ Advertising, number of salesman
§ Quantities and timing of purchase
§ Rules for buying, supplies
§ Replacement policies
§ Mixes of age and skills
§ Selection of suitable personnel on minimum salary
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