Operational Research: Effective Decision Making in Operations Management

Operational Research 1
OPERATIONAL RESEARCH
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Operational Research 2
Executive Summary
The paper covers the effectiveness of operations management. It illustrates how a
decision is a primary factor in contributing to effective operation management. Decision making
is a primary driver in solving problems with the use of analytical methods. The methods are
applied by organizations to enhance control. Several activities take place in operations research
such as breaking down of problems into segments and then solving them in steps by the aid of
mathematical analysis. Organizations have adopted operations research as a model to address
complex issues related to business operations
The decisions influence the various ways that have been incorporated into business
management that managers make. Managers of multiple businesses are required to make
improved decisions regarding transactions since it is essential in shaping the corporate image of a
company and ensuring that the business is run efficiently with the available resources.

Operational Research 3
Table of Contents
Introduction................................................................................................................ 4
Operations Research.................................................................................................. 5
Decisions Making Under Uncertainty..........................................................................6
Maximin Criterion.................................................................................................... 7
Fuzzy Method.......................................................................................................... 7
Robust Optimization................................................................................................ 8
Decision Making Under Risk....................................................................................... 8
Decision Making Under Certainty...............................................................................9
Conclusion.................................................................................................................. 9
References............................................................................................................... 10

Operational Research 4
Introduction
Operational research is associated with various analytical tools that aid in decision
making. Decision trees refer to a model that involves contemplating each option and the related
outcomes to help arrive at a better decision, and it also incorporates the use of statistics. Many
businesses today fail because of having a weaker decision tree (Gepp, and Kumar, 2015, 4000).
A company will thrive when it applies the use of business tree when arriving at decisions. A
business tree will help an organization to evaluate all the options of choices and thus come up
with concrete and better decisions. It allows companies to statistical data when discussing how to
solve a specific problem. The information derived from the databooks will facilitate the decision-
making process, and this will result in decisions that support business operations and ensure the
company’s performance is enhanced.
Operational management is dependent on decisions, and policies stipulate by the
company. Operations management aims at achieving efficiency in business by mainstreaming the
best business practices. According to (Heizer, et al., 2017), operations management is crucial in
identifying market issues by employing a strategic framework that monitors business practices
such as warehousing and inventory. Operations management aims at ensuring that the
maximization of profits is achieved. Stable operation management will ensure the sustainability
of the business administration and provision of quality goods and services by providing that
labor and the available resource are converted into the finished overall value. Therefore
operation management is a core to the creation of product and services. According to (Khanna,
2015), production and management are intertwined in the sense that information flows between
production and management. The other function of operational management is enabling financial
and operational needs as well as human resources skills in the production sector. There are other
business tools such as planning, coordinating, controlling, and even organizing the resources the