The most well-known use is in the form of Economic Order Quantity equation for finding economic lot size. Whether to manufacture or to purchase i.e., make and buy decisions.This study helps in taking decisions about: Operation Research study involves balancing inventory costs against one or more of the following costs: Important techniques of Operation Research are being described hereunder: (i) Inventory Control Models:
![operational research model operational research model](https://www.thestatisticsassignmenthelp.com/uploads/1567837711297.jpg)
Changing relationship between variables i.e., considering them as linear or straight line.Changing the nature of variables e.g., considering variables as constant or continuous.While constructing the model, efforts should be made to simplify them, but only up to the extent so that there is no significant loss of accuracy. Simplification in Operation Research Models: Since model is only an approximation of the real situation, hence it may not include all the variables. The general form of a mathematical model is:į = Relationship between O, and x i, y i. These expressions consist of controllable and uncontrollable variables. Objective function is a mathematical expressions of objectives (cost or profit of the operation), while constraints are mathematical expressions of the limitations on the fulfillment of the objectives. The equations represent objective function and constraints. It should be able to asscimilate the system environmental changes without change in its framework.Ī mathematical model is a set of equations in which the system or problem is described.Variables should be as less as possible.