Operations Research or Qualitative Approach MCQ Questions and Solutions with Explanations | Management

Operations Research was known as an ability to win a war without really going in to a Battle field and Fighting.

Morse and Kimball (1946) defined Operations Research as scientific method of providing executive departments with a quantitative basis for decisions regarding the operations under their control. Kimbal (1946) “OR is a scientific method of providing executive department with a quantitative basis for decision regarding the operations under their control.

Operations Research has the characteristics the it is done by a team of Scientists. Operations research attempts to evaluate the effect of changes in any part of a system on the performance of the system as a whole and to search for causes of a problem that arises in one part of a system in other parts or in the interrelationships between parts. In industry, a production problem may be approached by a change in marketing policy.

There is a great scope for Economists, Administrators and Statisticians and Technicians working as a team to solve problems of defence by using the Operations Research approach.

Operations Research emphasizes on the overall approach to the system. This characteristics of Operations Research is often referred as Team Approach. Operations research (OR) is an analytical method of problem-solving and decision-making that is useful in the management of organizations. In operations research, problems are broken down into basic components and then solved in defined steps by mathematical analysis.

Operations Research cannot give perfect Answers and Solutions to problems.

Operations Research study generally involves three phases.
1.Judgment Phase. This consists of: (i) Determination of the operation (ii) establishment of the objectives and values related to the operation (iii) Determination of the suitable measures of effectiveness and (iv) formulation of the problems relative to the objectives.
2.Research Phase. This phase utilizes; (i) Operations and data collection for a better understanding of the problems, (ii) Formulation of hypothesis and model, (iii) observation and experimentation to test the hypothesis on the basis of additional data, (iv) Analysis of the available information and verification of the hypothesis using pre-established measures of effectiveness, and (v) predictions of various results from the hypothesis (vi) generalization of the various results and consideration of alternative methods.
3. Action Phase. It consists of making recommendations for the decision process by those who first posed the problems for consideration or by anyone in a position to make a decision, influencing the operation in which the problem occurred.

Allocation models involves the allocation of resources to activities in such a manner that some measure of effectiveness is optimized. Allocation models can be created to present possible asset allocation strategies for clients. Diversifying investments by asset categories can offset the fluctuations of the performance of the total portfolio. Besides offering models, OIPA supports the use of funds through allocation configuration.

Allocation problems can be solved by Linear Programming Technique and Non – Linear Programming Technique.

In Deterministic Models, everything is defined and the results are certain. Mathematical model in which outcomes are precisely determined through known relationships among states and events, without any room for random variation. In such models, a given input will always produce the same output, such as in a known chemical reaction.