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2 A model can be defined as a representation of an actual

object or situation. It shows the relationship of action
and reaction in terms of cause and effect.
2 The main objective of a model is to provide means for
analyzing the behavior of the system and improving its
performance.
Types of OR Models

2 Allocation Models- This model is used to allocate

resources in such a way that the optimum utilization of
these resources could be achieved.

2 Inventory Models- This model deals with the problem

of determination of the quantity to be ordered and time
for placing an order.
Continued..

2 Waiting Line Models -These models are helpful to

establish a trade-off between cost of providing a
service and the waiting time of a customer in the
queuing system. It describes the components of the
system.
2 Sequencing Models- The problem of sequencing arises
where there are a number of tasks which are to be
performed such as in case of hospital, plant etc.
Continued..

2 Replacement models- These models are used when

equipment is to replace whose efficiency deteriorates
with time or fails immediately. The optimum time to
replace an equipment can be determined with the help
of this model.
2 Game Theory Model- These models are used to
determine the behavior of two or more opponents who
are called players and who compete for the
achievements of conflicting goals.
Continued..

2 Network models- These models are applied to plan

large scale projects. PERT (Programmed Evaluation
and Review Techniques) and CPM (Critical Path
Method).
2 Marcov Chain Models- These models are used for
analyzing a system which changes over a period of
time among various possible outcomes.
Continued..

2 Simulation Models- These models are used to develop

a method to evaluate the merit if alternative courses of
action where various variables are random.
2 Decision Analysis Models- These models deal with the
selection of an optimum of course of action given the
possible payoffs and the probability of their
occurrence.
Advantages

2 Systematic approach to problems

2 Critical analysis
2 Based on reality
2 Powerful tool for predicting future
2 Entire problem can be viewed
2 Transfer of ideas
Disadvantages

2 Applicable to only specific problem

2 Only quantitative factors are considered
2 Human factor is ignored
2 Resistance