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Each product requires varying amounts of each of the resources and the company incurs different costs labor, raw materia


Each product requires varying amounts of each of the resources and the company incurs different costs labor, raw materia
Each product requires varying amounts of each of the resources and the company incurs different costs labor, raw materials etc.
in making the products and realizes different revenues when they are sold.
The objective of the O.
project is to allocate the resources to the two products in an optimal fashion.
Typically, the team will have a leader and be constituted of members from various functional areas or departments that will be affected by or have an effect upon the problem at hand.
In the orientation phase, the team typically meets several times to discuss all of the issues involved and to arrive at a focus on the critical ones.Fassilia
United States. Alabama



day: 19.09.2018
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Each product requires varying amounts of each of the resources and the company incurs different costs labor, raw materia

The company makes use of numerous resources such as labor, production machinery, raw materials, capital, data processing
The company makes use of numerous resources such as labor, production machinery, raw materials, capital, data processing, storage space, and material handling equipment to make a number of different products which compete for these resources.
The products have differing profit margins and require different amounts of each resource.
Many of the resources are limited in their availability.
Additionally, there are other complicating factors such as uncertainty in the demand for the products, random machine breakdowns, and union agreements that restrict how the labor force can be used.
Given this complex operating environment, the overall objective is to plan next month s production so that the company can realize the maximum profit possible while simultaneously ending up in a good position for the following month s .
As an illustration of how one might conduct an operations research study to address this situation, consider a highly simplified instance of a production planning problem where there are two main product lines widgets and gizmos, say and three major limiting resources A, B and C, say for which each of the products compete.Fassilia
United States. Alabama



day: 19.09.2018
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Each product requires varying amounts of each of the resources and the company incurs different costs labor, raw materia

Figure 1 The Operations Research Approach.
Figure 1 The Operations Research Approach.
While most of the academic emphasis has been on Steps 4, 5 and 6, the reader should bear in mind the fact that the other steps are equally important from a practical perspective.
Indeed, insufficient attention to these steps has been the reason why O.
has sometimes been mistakenly looked upon as impractical or ineffective in the real world.
Each of these steps is now discussed in further detail.
To illustrate how the steps might be applied, consider a typical scenario where a manufacturing company is planning production for the upcoming month.Fassilia
United States. Alabama



day: 19.09.2018
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Given that O.
Given that O.
represents an integrated framework to help make decisions, it is important to have a clear understanding of this framework so that it can be applied to a generic problem.
To achieve this, the so-called O.
approach is now detailed.
This approach comprises the following seven sequential steps 1 Orientation, 2 Problem Definition, 3 Data Collection, 4 Model Formulation, 5 Solution, 6 Model Validation and Output Analysis, and 7 Implementation and Monitoring.
Tying each of these steps together is a mechanism for continuous feedback; Figure 1 shows this schematically.Fassilia
United States. Alabama



day: 19.09.2018
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uses a methodology that is objective and clearly articulated, and is built around the philosophy that such an approach i
uses a methodology that is objective and clearly articulated, and is built around the philosophy that such an approach is superior to one that is based purely on subjectivity and the opinion of experts, in that it will lead to better and more consistent decisions.
does not preclude the use of human judgement or non-quantifiable reasoning; rather, the latter are viewed as being complementary to the analytical approach.
One should thus view O.
not as an absolute decision making process, but as an aid to making good decisions.
plays an advisory role by presenting a manager or a decision-maker with a set of sound, scientifically derived alternatives.
However, the final decision is always left to the human being who has knowledge that cannot be exactly quantified, and who can temper the results of the analysis to arrive at a sensible decision.Fassilia
United States. Alabama



day: 19.09.2018
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