Operation Research may be regarded as a tool which is utilized to increase the effectiveness of the management decisions. O R is objective supplement to the subjective feeling of the decision maker.
Significance of Operations Research can be formulated as follows:

1. Better Control :The management of big business houses finds it much costly to provide continuous executive supervisions over routine decisions. An OR approach directs the executives to devote their attention to more important matters.

2. Better Coordination: OR has been very useful to make a clear cut picture out of a situation of chaos. For example OR based planning models because a methods of co ordination marketing decisions with the limitation imposed on manufacturing capabilities.

3. Better Systems :OR study is also initiated to analyze a particular problem of decision making such as establishing a new warehouse new transportation plan assigned retrenchment plans.

4. Better Decisions :OR models frequently yield actions that improve a common sense decision making. Sometimes a situation may be so complicated that a human mind cannot take appropriate decisions by taking into account all the factors relevant for decision making OR helps to do so.