Operation Research Models
The OR models are
Allocation models (Distribution models)
These models are related with the allocation of available resources so as to make the most of profit or minimize loss subject to existing and predicted limitations. Methods which are used for solving allocation models are
Waiting line models (Queueing)
This model is an attempt made to forecast
This model provides to reduce the sum of costs of service providing and cost of getting service, linked with the value of time used up by the customer in a queue.
Game theory (Competitive strategy models)
These models are generally used to decide the behavior of decision-making under conflict or competition. Methods for solving such models are not found suitable for industrial practices mainly because they are meant for an idealistic world neglecting many necessary characteristic of reality.
Inventory (Production) models
These models are related with the finding of the best order quantity and ordering production intervals considering the factors like cost of placing orders, demand per unit time, costs related with goods held up in the inventory and the cost due to scarcity of goods, etc.
Replacement models
These models deals with finding of best time to compensate an equipment in situations which arise when some items or machinery require replacement by a scientific advance or new one or deterioration due to wear and tear, accidents etc. Individual and group replacement principles can be used in case of such equipments that completely fail instantaneously.
Job sequencing models
These models include the selection of a sequence of performing a series of jobs to be done on machines that maximizes the efficiency measure of working of the system.
Network models
These models are pertinent in big projects involving interdependencies and intricacies of activities. CPM (Critical Path Method) and PERT (Project Evaluation and Review Technique) are used for planning, arranging or scheduling and controlling activities of intricate project which can be described through network diagram.
Simulation models
This model is used mostly for solving problems when there are large number of variables and constrained relationships.
Markovian models
These models are applicable in the situations where the state of the system can be stated by some explanatory measure of numerical value and where the system changes from one state to another on a probability basis.
Principles of Modeling
The model building and their applications both should be willfully aware of the following ten principles
Simplifications of OR Models
While developing a model, two contradictory objectives generally strike in our mind
Besides, the management must be able to comprehend the solution of the model and must be able of using it. So the truth of the problem under study should be simplified to the extent when there is no loss of accurateness. The model can be simplified through
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The VAS (value added statement) assists to promote the message that a business is a coalition of interests and which business success relies on co-operation among the several stakeholders.
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