It is Operation Research MBA Assignments of SMU M0032. Check Linear Programming Problems for MB0032 SMU MBA Assignments also.
“Describe the broad classification of operations research models in details. Name the different steps needed in OR approach of problem solving?”
A model is known as the representation of the reality. It is known as an idealized representation or abstraction of a real life system. The main objective of this model is to identify significant factors and their interrelationship. A model is helpful is decision making as it provides a simplified description of complexities and uncertainties of a problem in logical structure.
A broad classification of OR models:
a) Physical modes include all form of diagrams, graphs and charts. They are designed to deal with specific problems. They bring out significant factors and inter-relationship in pictorial firm so as to facilitate analysis.
There are two types:
1) Ieonic models and 2) Analog models
Iconic model is known as an image of an object or system that is represented on a small scale. We can say that these models can simulate the actual performance of a product.
On the other hand analog models are small physical systems that have similar characteristics and work like an object. For example- Toy.
b) Mathematical Model or Symbolic models represent the decision variable of the system. The model employs a set of mathematical symbols also. The variables are related by mathematical system also. For example - Allocation, sequencing, replacement models etc.
c) It is by nature of Environment
We have 1) Deterministic model in which every thing is defined and the results are certain. Eg: EOQ model 2) Probabilistic models in which the input and output variables follow a probability distribution Eg: Games Theory.
d) By the extent of Generality: The tow models belonging to this class are 1) General model can be applied in general and does not pertain to one problem only. Eg: Linear Programming 2) Specific model is applicable under specific condition only. For example - Sales can response curve or equation which can be known as a function of advertising that is applicable in the marketing function alone.
The scientific method translates a real given problem into a mathematical representation which is solved and retransformed into the original context. The OR approach to problem solving consists of the following steps:
1) Definition of the problem
The first and the most important requirement is that the root problem should be identified and understood. The problem should be identified properly, this indicates three major aspects:
1) A description of the goal or the objective of the study, 2) an identification of the decision alternative to the system, and 3) a recognition of the limitations, restrictions and requirements of the system.
2) Construction of the model
Depending on the definition of the problem, the operations research team should decide on the most suitable model for representing the system. Such a model should specify quantitative expressions for the objective and the constraints of the problem in terms of its decision variables.
3) Solution of the model
Once an appropriate model has been formulated the next stage in the analysis calls for its solution and the interpretation of the solution in the context of the given problem – A solution to a model implies determination of a specific set of decision variables that would yield on optimum solution. An optimum solution is one which maximizes or minimizes the performance of any measure in a model subject to the condition and constraints imposed on the model.
4) Validation the model
A model is a good representative of a system, and then the optimal solution must improve the system’s performance. A common method for testing the validity of a model is to compare its performance with some post data available for the actual system.
5) About Implementation of the final result
The optimal solution obtained from a model should be applied practice to improve the performance of the system and the validity of the solution should be verified under changing conditions.