Organizational management can benefit from the analytical approach to problem-solving and decision-making, known as operations research (OR). In operations research, issues are deconstructed into fundamental elements and then resolved through a set of stages outlined by mathematical analysis (Panneerselvam, 2023). Helping organizations choose the best course of action for resolving an issue is the primary goal of operations research. By giving information on the best choice for inventory mix, labour, or machinery usage, this optimization enables businesses to increase production and efficiency. Through this article, the importance of operational research to institutions will be discussed in detail.
Importance of Operational Research
Optimizing Resource Allocation
Operational research aids institutions in optimizing their resource allocation, which many institutions are struggling to achieve to meet their constrained budgets (Panneerselvam, 2023). Through OR, academic institutions can maximize facilities and classroom utilization when planning to develop their facilities. By implementing OR techniques, the institution can create schedules that correctly assign capable individuals to classes, optimizing room occupancy and reducing time wastage. For instance, Stanford University employs OR techniques to promote resource allocation in the academic arrangement (Min & Bin, 2022). This style improves the learning experiences amongst learners and guarantees proper usage of the available resources. The mathematical simulations, as per OR, consider varied restrictions such as the size of the classroom and room capacities. A reasonable system allocation enhances organizational efficacy, thus helping the shareholders and the university.
Supply Chain Management
For institutions and organizations dealing with the movement of goods and services, efficient supply chain management is crucial. An institution employs the OR techniques to monitor their inventory levels, transport logistics, and distribution network (Jiang et al., 2020). A practical example of an organization using supply chain management is Amazon, an international e-commerce company. It employs OR to streamline its supply chain and optimize its inventory. This tactical method reduces costs linked with the extra inventory as it guarantees the availability of products to the clients (ΣΩΤΗΡΙΑ ΡΟΥΜΑΝΙΑ, 2023). The systems aligning with OR assist in defining the cost-effective courses for product distribution, hence reducing transportation expenses and promoting the general supply chain efficacy. The optimized supply chain positively impacts operational influences, positioning an organization as competitive.
Project Management and Scheduling
Coexisting projects in organizations present distinctive tasks and demand resources. Most companies usually need help with problems of supervising projects and their progress (Zasa et al., 2021). To solve this problem, OR appears as a vital tool in managing these projects, primarily through planning and allocating resources to these projects. The OR simulations ascertain tools in sequential works, thus properly and reasonably allocating resources and defining the ideal schedule for the project. A notable example is the Turner Construction Company. Employing OR methods, Turner meets its project deadlines and task dependencies, aligns with the availability of its resources, and optimizes its project schedules (Doroshin et al., 2023). Accurately scheduling projects promotes management efficacy, highlighting the organization’s competency in completing projects at the ideal time and within budget limits.
Financial Decision-Making
In the finance sector, critical decisions outline the success of organizations. Operational research stands out as an essential participant majorly in the line of portfolio optimization for investment businesses. In a setting where an asset management organization aims to steer equilibrium between optimizing profits and controlling risks. Using OR simulations, the organization can quickly develop a portfolio that considers a band of financial tools available in the markets and the prevailing environment. For instance, Vanguard, known for its investment, employs OR to capitalize on its investment decisions, which optimizes profits for customers and guarantees a proper allocation of assets to inform savvy investment (Astin, 2023). The step-by-step technique, in alignment with operational research, contributes to the long-term financial breakthrough of organizations as it provides a valuable tool to the dynamic economic surroundings.
Healthcare Optimization
Operational research is a significant method in medical institutions whereby resources are limited, and its decision has a life-or-death impact. Medical facilities use OR to promote efficacy in bed allocation, staff scheduling, and resource use. For example, Johns Hopkins Hospital embraced operational research during the COVID-19 pandemic to forecast the influx of patients, tactically allocate resources, ensure that all care units are adequately staffed, and optimize bed capacities. In this way, Johns Hopkins Hospital saved many lives as it provided targeted care to patients in good time and significantly improved the overall efficacy of healthcare (Pawan Whig et al., 2023). This, in turn, depicted the significant impact of operational research in the running of the hospital and its crucial role.
Conclusion
In conclusion, the OR has a lot of positive impacts on several institutions, from medical organizations to businesses and even academic institutions. This powerfully shows how vital operational research is.
References
Astin, G. (2023, April). Exploring Value Creation in Environmental Investments. Utexas.edu. https://repositories.lib.utexas.edu/items/c6ad6346-cd72-44d5-bd82-51bcbb98273d
Doroshin, Kazaryan, R, Jadanovskiy, B, & Andreeva, P. (2023). Aspects of evaluation of the economic efficiency of using information modelling technology in the organization of construction production – ProQuest. Proquest.com. https://www.proquest.com/openview/1a449f4d839c6ad9d797744d32016f26/1?pq-origsite=gscholar&cbl=204055
Jiang, J., Wang, H., Mu, X., & Guan, S. (2020). The logistics industry monitoring system is based on a wireless sensor network platform. Computer Communications, 155, 58–65. https://doi.org/10.1016/j.comcom.2020.03.016
Min, L., & Bin, G. (2022). Online teaching research in universities based on blockchain. Education and Information Technologies, 27(5), 6459–6482. https://doi.org/10.1007/s10639-022-10889-w
Panneerselvam, R. (2023). Operations research. PHI Learning Pvt. Ltd.. https://books.google.com/books?hl=en&lr=&id=GcfAEAAAQBAJ&oi=fnd&pg=PP1&dq=Operations+research+(OR)+is+an+analytical+method+of+problem-solving+and+decision-making+that+is+useful+in+the+management+of+organizations.+In+operations+research,+problems+are+broken+down+into+basic+components+and+then+solved+in+defined+steps+by+mathematical+analysis.+&ots=hqbnDO6sw8&sig=OiLPMBMMeV1fTwuayYwq_ISmvJw
Pawan Whig, Arun Velu, Rahul Reddy Nadikattu, & Yusuf Jibrin Alkali. (2023). Computational Science Role in Medical and Healthcare‐Related Approach. 245–272. https://doi.org/10.1002/9781119763468.ch12
Zasa, F. P., Pellizzon, E., & Patrucco, A. (2021). Managing the Hybrid Organization: How Can Agile and Traditional Project Management Coexist? Research-Technology Management. https://www.tandfonline.com/doi/abs/10.1080/08956308.2021.1843331
ΣΩΤΗΡΙΑ ΡΟΥΜΑΝΙΑ. (2023, July 23). Supply chain strategies and inventory management. Apothesis.eap.gr. https://apothesis.eap.gr/archive/item/185132
write