Application Of Various Operation Research Techniques in industry, business, government, military and agriculture.
Wide verity of industries namely, airlines, automobiles, transportation,petroleum, coal, chemical mining, paper, communication, computer, electronics etc.
have made extensive use of Operation Research techniques.
Some of the problems to which Operation techniques have been successfully applied are:
- Linear programming
- Dynamic programming
- Inventory control
- Queuing theory
- Decision theory
- Network techniques of PERT and CPM
- Replacement theory
1). Linear programming
Linear programming has been used to,
- solve problems involving assignment of jobs to machines
- product mix
- advertising media selection
- least cost diet
- investment portfolio selection and many others
2). Dynamic programming
Dynamic programming has been applied to
- capital budgeting
- selection of advertising media
- employment smoothing
- cargo loading and optimal routing problems.
3). Inventory control
Inventory control models have been used to,
- determine economic order quantities
- safety stocks
- reorder levels
- minimum and maximum stock levels
4). Queuing theory
Queuing theory has been helpful to solve problems of,
- traffic congestion
- repair and maintenance of broken-down machines
- number of service facilities
- scheduling and control of air traffic
- hospital operations
- counters in banks and railway booking agencies.
5). Decision theory
Decision theory has been helpful in,
- controlling hurricanes
- water pollution
- space exploration
- research and development projects.
6). Network techniques of PERT and CPM
Network techniques of PERT and CPM have been used in,
- scheduling and controlling construction of dams
- highways and development and production of aircraft
- computers etc.
Simulation has been helpful in,
- a wide variety of probabilistic marketing situations
used to find NPV (Net Present Value) distribution for the venture of market introduction of a new product.
8). Replacement theory
Replacement theory has been extensively employed to determine the optimum replacement interval for three types of replacement problems:
- replacement of items that deteriorate with time.
- replacement of items that do not deteriorate with time but fail suddenly.
- staff replacement and recruitment.
Other techniques extensively employed are game theory, statistical quality control, investment analysis, goal programming, etc.