For this post, Iwill put about Operational Research as an Introduction.
Firstly, I will inform you about quotes’ for Operational Research Theories as centre note (in bracket) in this post so it will avoid people think everything that I put at here is mine. Because I don’t want people think that I’m doing plagiarism. It’s a big NO NO for me. ^__^
I’m trying to explain what is Operational reseach as an Introduction from some books that I’ve read before. So far, I used two books which are Operations Research : An Introduction, 8th Ed. by Hamdy A. Taha and Riset Operasi: untuk Pengambil Keputusan, 1st Ed. by Johannes Supranto.
Let’s we begin our topic about Operational Research – Introduction.
What is Operational Research?
Operational Research has a function to allocate limited sources (input) with activities as efficient and effective as they could to gain optimal results of operation (output) (Supranto, 1988).
The first formal activities of Operational Research or Management Science (in USA) happened during World War II when British Army and USA Army need a method that could solve their problem at that time.
Then they gathered many scientists from many fields to solve the problem which is lack of resources always be a big problem for surviving in battle field. So they need to make scientifically based decisions regarding the best utilization of war material.
And then they found ” Operational Research” that practically to maximize the profit or to minimize the loss.
After World War II the Operational Research which is the ideas advanced in military operations were adapted to improve efficiency and productivity in the civilian sector.
At below, I will give you one simple problem to find about optimality.
Imagine that you have to arrange your marriage party that would be held in your hometown (we assume the hometown name is Fairyland). So within 5 weeks you have commitment to have a round trip from the place that you live now (we assume the place name is City) and Fairyland.
(From this point, we will mention Fairyland as FL and City as C).
You fly out of C on Monday and return on Wednesday. A regular round trip ticket costs IDR. 2.000.000, but a 20% discount is granted if the dates of the ticket span a weekend. A one – way ticket in either direction costs 75% of the regular price.
How should you buy the tickets for the 5 weeks period?
** We can look at the situation as a decision-making problem whose solutions requires answering 3 questions:
1. What are the decision alternatives?
2. Under what restrictions is the decision made?
3. What is an appropriate objective criterion for evaluating the alternatives?
Three alternatives are considered:
1. Buy 5 regular C – FL – C for departure on Monday and return on Wednesday of the same week.
2. Buy 1 (one) C – FL, 4 (four) FL – C – FL that spa weekends, and 1 (one) FL – C.
3. Buy 1 (one) C – FL – C to cover Monday of the first week and Wednesday of the last week and 4 (four) FL – C – FL to cover the remaining legs. All tickets in this alternative span at least one weekend.
The restriction on these options:
–> you should be able to leave C on Monday and return on Wednesday of the same week.
An obvious objective criterion for evaluating the proposal alternative:
–> the price of the tickets –> the alternative that yields the smallest cost is the best.
Specifically we have:
Alternative 1 cost : 5 x IDR. 2.000.000 = IDR. 10.000.000
Alternative 2 cost : (0.75 x IDR. 2.000.000) + (4 x (0.8 x IDR. 2.000.000)) + (0.75 x IDR. 2.000.000) = IDR. 9.400.000
Alternative 3 cost : 5 x (0.8 x IDR.2.000.000) = IDR. 8.000.000
Thus, you should choose alternative 3.
Though the preceding example illustrates the three main components of an Operational Research model – alternatives, objective criterion, and constraints – situation differ in the details of how each components is developed and constructed.
For futher information, I will analyze that at the next post.
Hopefully this post can give you an information about Operational Research briefly.