Operations research (OR), also called management science, refers to a collection of analytical techniques used for optimum decision making in management and other fields of human activity. OR makes heavy uses of mathematical and graphical techniques. However the term is now used to include other analytical techniques also.
The method of operation research consists of developing a logical model of reality, and then manipulating this model to understand the impact of different variables impacting the reality, and based on this understanding selecting an appropriate decision. The OR model of reality may be represented in any suitable forms such as mathematical expression, network diagram, graph or any other physical model.
Some of the most common techniques of OR are linear programming, project networks, various statistical techniques, simulation, transportation models, replacement models, production planning systems, and inventory models including economic order quantity (EOQ) formula.
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