Approaches and Phases of Operation Research in Decision Making:

Operation Research (OR) provides a logical and systematic approach to decision-making. The approaches, phases and process study must also be quite logical and systematic. There are six important steps in the operation research study, but in all, each and every step does not necessarily follow the logical order as below:

STEP-1: Observing the problem Environment:

The first step is the observation of the environment in which the problem exists. This step includes activities like conferences, site visits, research, observation etc. These activities give sufficient information and support to define the problem.

STEP-2: Analysing and Defining the Problem:

In this step, the problem is defined, and the objectives and limitations of the study are stated in its context. The end results of this step are a clear grasp of the need for a solution and an understanding of its nature.

STEP-3: Deriving a model:

The next step is to develop a model, which is the representation of the same real or abstract situation. OR models are basically mathematical models representing systems, processes or environments in form of equations, relationships or formulae. The activities in this step are to define interrelationships among variables, formulate equations, use known OR models or searching suitable alternate models. The proposed model may be field-tested and modified in order to work under stated environmental constraints. A model may also be modified if the management is not satisfied with the answer that it gives.

STEP-4: Selecting Appropriate Data Input:

It is an established fact that without appropriate data the results of the OR models cannot be trusted. Hence, using the right kind of data is vital in OR. Important activities in this step are analysing internal-external data and facts, collecting opinions and using computer data banks. The purpose of this step is to have sufficient input to operate and test the models.

STEP-5: Providing a Solution and Testing its Reasonableness:

In this step, the solution to the problems is obtained with the help of the model and data input. Such a solution is not implemented immediately and this solution is used to test the model and to find its limitations if any. If the solution is not reasonable or if the model is not behaving properly, updating and modification of the model are considered at this stage. The end result is that the solution that supports the current organization is objectives.

STEP-6: Implementing the solution:

This is the last phase of the OR study. In OR the decision-making is scientific but the implementation of decision involves many behavioural issues. Therefore, the implementation authority has to resolve the behavioural issues, involving the workers and supervisors to avoid further conflicts. The gap between management and OR scientist may offer some resistance but must be eliminated before the solution is accepted in totality. Both parties should play a positive role since the implementation will help the organization as a whole. A properly implemented solution obtained through OR techniques results in improved working conditions and wins management support.

(Source – Various books of college library)

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