Importance of Operations Research

by Suchi Moorty; Updated September 26, 2017
Female executive using phone and computer at office

Operations research (OR) is a management function that draws extensively from the divisions of mathematics and science. It makes use of algorithms, statistics and numerous modeling techniques from mathematics to find the best possible solutions for complex problems. In OR, the maxima has to be optimized and the minima has to be reduced for all the objects involved. Maxima are usually the yield, performance and profit and minima are the losses and risks. There are many reasons to use OR.

Business Operations

Woman Working in Warehouse

OR could be very effective in handling issues of inventory planning and scheduling, production planning, transportation, financial and revenue management and risk management. Basically, OR could be used in any situation where improvements in the productivity of the business are of paramount importance.


Businesswoman Working At Desk In Warehouse

With OR, organizations are greatly relieved from the burden of supervision of all the routine and mundane tasks. The problem areas are identified analytically and quantitatively. Tasks such as scheduling and replenishment of inventories benefit immensely from OR.

Decision Making

Businessman Working At Desk In Warehouse

OR is used for analyzing problems of decision making in a superior fashion. The organization can decide on factors such as sequencing of jobs, production scheduling and replacements. Also the organization can take a call on whether or not to introduce new products or open new factories on the basis of a good OR plan.



Various departments in the organization can be coordinated well with suitable OR. This facilitates smooth functioning for the entire organization.


Warehouse Worker Scanning Barcode

With OR, any organization follows a systematic approach for the conduct of its business. OR essentially emphasizes the use of computers in decision making; hence the chances of errors are minimum.

About the Author

Suchi Moorty has vast writing experience in magazines and on various online portals. She has been associated with the print media since 2003, and is very comfortable in writing on fields such as health care, chemistry, physics, life sciences, management, human resources, finance and accounting. Moorty has a Master of Science in biology.

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