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Advantages and Disadvantages of Operation Research

Operations research (OR) is a problem-solving and decision-making analytical approach beneficial in organizational management. In operations research, issues are deconstructed into their simplest forms before being mathematically analyzed and resolved in a set of processes. Operational research aims to achieve the greatest performance possible given the available conditions. Any firm that uses scarce resources has to allocate them as effectively as possible; operations research helps in this process.

Operations research has many advantages, but it also has its disadvantages. Before using operations research in a business decision, entrepreneurs must become familiar with all sides of the domain.

Advantages and Disadvantages of Operation Research

Advantages of Operation Research

  • Better Systems

An O.R. technique is frequently adopted to examine a specific decision-making issue, such as the best factory site or whether to construct a new warehouse. Additionally, it helps select cost-effective transportation methods, work sequencing, production planning, replacement of outdated machinery, etc.

  • Enhanced Productivity

Operations research contributes to boosting an organization's production. Before making a critical choice, operations controls provide managers with valuable information. It helps a business make small decisions that build up to big ones. Many businesses employ simulation operations research techniques to increase productivity by combining them in various ways.

Daily duties like inventory management, personnel planning, business development, installation, and technological upgrades are also made easier with its aid. Making correct and effective decisions aids in increasing an organization's productivity.

  • Best Control

The management of big firms understands how hard and expensive it is to supervise every regular task continuously. An O.R. method could give the executive a quantitative and analytical foundation to pinpoint the issue. Applications in this area that are implemented most commonly deal with inventory replenishment and production schedule.

  • Provides many alternatives

Management is in charge of making critical organizational choices. Operations research offers several solutions to a single issue, assisting management in selecting the best option and putting it into practice to achieve the desired result.

Managers can assess the risks connected to each option and then choose whether or not to implement it.

  • Improved Coordination

The coordination between a company's many departments and employees is improved by operations research because operations research concentrates not on a single department but the entire organization.

As a result, managers in each area know what must be done to advance the organization's overall goal. As a result, when solutions are implemented across all departments, managers of various departments may collaborate better.

  • Better Decision making

O.R. models increase decision-making and lower the possibility of making bad decisions. The O.R. technique improves the executive's understanding of his decision-making process.

  • Reduce chances of failure

Operations and research managers discover all potential solutions for a given problem with the aid of operations, reducing the risk of failure.

Before adopting a solution, all potential hazards are examined. As a result, until an unforeseen event occurs, the probability of failure decreases.

Disadvantages of Operation Research

  • Costly

The main drawback of operations research is its high price. Operations research uses mathematical equations that are created using pricey technologies. In addition, simulations require the assistance of professionals.

Even though the cost would be quite expensive, all of this may offer useful answers. Companies with limited resources can use operations research due to the high implementation costs.

  • Dependence on a computerized system

O.R. methods look for the best solution while considering all the variables. Due to the size of these components in contemporary society, describing them quantitatively and developing links between them calls for extensive computations that computers can only perform.

  • Unquantifiable Elements

OR only gives a solution when all aspects of an issue can be quantified. Not all pertinent variables are amenable to quantification. In OR studies, factors that cannot be measured have no place. Models in OR do not consider emotional or qualitative elements, which may be quite significant.

  • Distance between Manager & Operations Researcher

O.R. specialists have to be mathematicians or statisticians who may not be familiar with business issues. Similarly, a manager cannot comprehend the intricate functioning of O.R. There is a gap t between the two.

  • Implementation

Any decision's implementation is a sensitive task. It must account for the intricacies of human relationships and behavior. Sometimes resistance is presented due to psychological issues that have nothing to do with the problem or its solution.

  • Reliance on Specialists

Operations research is required to carry out by a team of specialists. Several factors are related to this, making operations research an undesirable choice for management.

For instance, if there is a miscommunication between managers & OR specialists, the solutions won't work and can't be applied. Additionally, if inaccurate information is given to the experts, all solutions will be rendered useless and may even result in a loss rather than an advantage.

  • Not Realistic

Experts in Operation Research create extremely complex models to address issues. These models might not be accurate. Therefore, they might not apply to real-world circumstances.

  • Complex

Operation Research is a highly complicated concept. A typical manager would find it very challenging to comprehend. As a result, most managers avoid using OR techniques.

The Conclusion

After discussing the advantages and disadvantages, we can conclude that, despite its disadvantages, operations research is important since it develops effective solutions to challenging business problems.

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