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Advantages of Operations Research OR in Decision Making

square Advantages of Operations Research (OR)

The role, importance or advantages of Operations Research (OR) are:-

advantages of operations research OR

Picture or Image depicting the Advantages of Operations Research (OR).

1. Effective Decisions

Operations Research (OR) helps the managers to take better and quicker decisions. It increases the number of alternatives. It helps the managers to evaluate the risk and results of all the alternative decisions. So, OR makes the decisions more effective.

2. Better Coordination

Operations Research (OR) helps to coordinate all the decisions of the organisation. It coordinates all the decisions taken by the different levels of management and the various departments of the organisation. For e.g. It coordinates the decisions taken by the production department with the decisions taken by the marketing department.

3. Facilitates Control

Operations Research (OR) helps the manager to control his subordinates. It helps the manager to decide which work is most important. The manager does the most important work himself, and he delegates the less important work to his subordinates.

Operations Research (OR) helps a manager to fix standards for all the work. It helps him to measure the performance of the subordinates. It helps the manager to find out and correct the deviations (difference) in the performance. So, OR facilitates control.

4. Improves Productivity

Operations Research (OR) helps to improve the productivity of the organisation. It helps to decide about the selection, location and size of the factories, warehouses, etc. It helps in inventory control. It helps in production planning and control. It also helps in manpower planning. OR is used in expansion, modernisation, installation of technology, etc. OR uses many different mathematical and statistical techniques to improve productivity. Simulation is used by many organisations to improve their productivity. That is, they try out many production improvement techniques on a small scale. If these techniques are successful then they are used on a large scale.

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