Management Applications Of Operation Research

Some of the areas of manaement decision makinging, where the ' Tools' and 'techniques' of OR ,  are applied, can be outlined as follows :

1) Finance-Budgeting and Investments

(a) cash-flow analysis, long range capital requirements, dividend policies, investment portfolies.

(b) credit policies, credit risks and delinquent account procedures.

(c) claim and complaint procedures.

2). Purchasing, Procurement and Exploration

(a) rules for buying, supplies and stable or varying prices.

(b) determination of quantities and timing of purchases.

(c) bidding policies.

(d) strategies for exploration and exploitation of raw material sources.

(e) replacement policies

3) Production Management
((1)) physical distribution

  (a)  location and size of warehouse, distribution centres and retail outlets

(b) distribution policy

((2)) Facilities Planning
   (a) Number and location of function, warehouse, hospital etc.
 
  (b) Loding and unloading facilities for railroads and trucks determining the transport activity

((3)) Manufacturing
(a) prduction scheduling and sequencing

(b) Stablization of  production and employment traning layoffs and optimum products mix.

((4)) Maintenance and Project Scheduling

(a) Maintence policies and preventive maintenance

(b) Maintenance crew sizes

(c) Project scheduling and allocation of resources

(4) Marketing

(a) product selection,  timing,  competitive actions

(b) Number of salseman,  frequency of calling  on accounts percent of time spent on prospects.

(c) advertising media with respect to cost and time

(5) Personal Management

(a) Selection of suitable personal on minimum salary

(b) mixes of age and skills

(c) Recruitment policies and assitnment of jobs

(6) Research and Development

(a) Determination of the areas of concentration of research and davelopment

(b) Project Selection 

(c) Determination of time cost trade-off and central of development projects

(d) Reliability and alternative design.

From all above area of application, we may conclude that OR can be widely  used in taking management decisions and also  used as a correctiive measure.

             The application of this tool involves certain data and not merly a personality of decision maker and
hence we can say ----------------
           -------"OR A REPLACE A MANAGEMENT BY PERSONALITY."