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Introduction to Operations Research

Introduction to Operations Research. Introduction to Operations Research. Operations research/management science

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Introduction to Operations Research

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  1. Introduction to Operations Research

  2. Introduction to Operations Research • Operations research/management science • Winston: “a scientific approach to decision making, which seeks to determine how best to design and operate a system, usually under conditions requiring the allocation of scarce resources.” • Kimball & Morse: “a scientific method of providing executive departments with a quantitative basis for decisions regarding the operations under their control.” MATH 327 - Mathematical Modeling

  3. Introduction to Operations Research • Provides rational basis for decision making • Solves the type of complex problems that turn up in the modern business environment • Builds mathematical and computer models of organizational systems composed of people, machines, and procedures • Uses analytical and numerical techniques to make predictions and decisions based on these models MATH 327 - Mathematical Modeling

  4. Introduction to Operations Research • Draws upon • engineering, management, mathematics • Closely related to the "decision sciences" • applied mathematics, computer science, economics, industrial engineering and systems engineering MATH 327 - Mathematical Modeling

  5. Identify the Problem or Opportunity Understand the System Formulate a Mathematical Model Verify the Model Select the Best Alternative Present the Results of the Analysis Implement and Evaluate Methodology of Operations Research*The Seven Steps to a Good OR Analysis Feedback loops at all levels! *Adapted from Winston, Wayne L., Operations Research: Applications and Algorithms, 3rd Edition, Duxbury Press, 1994, p. 2. MATH 327 - Mathematical Modeling

  6. Identify the Problem or Opportunity Understand the System Formulate a Mathematical Model Verify the Model Select the Best Alternative Present the Results of the Analysis Implement and Evaluate Methodology of Operations Research*The Seven Steps to a Good OR Analysis • What are the objectives? • Is the proposed problem too narrow? • Is it too broad? MATH 327 - Mathematical Modeling

  7. Identify the Problem or Opportunity Understand the System Formulate a Mathematical Model Verify the Model Select the Best Alternative Present the Results of the Analysis Implement and Evaluate Methodology of Operations Research*The Seven Steps to a Good OR Analysis • What data should be collected? • How will data be collected? • How do different components of the system interact with each other? MATH 327 - Mathematical Modeling

  8. Identify the Problem or Opportunity Understand the System Formulate a Mathematical Model Verify the Model Select the Best Alternative Present the Results of the Analysis Implement and Evaluate Methodology of Operations Research*The Seven Steps to a Good OR Analysis • What kind of model should be used? • Is the model accurate? • Is the model too complex? MATH 327 - Mathematical Modeling

  9. Identify the Problem or Opportunity Understand the System Formulate a Mathematical Model Verify the Model Select the Best Alternative Present the Results of the Analysis Implement and Evaluate Methodology of Operations Research*The Seven Steps to a Good OR Analysis • Do outputs match current observations for current inputs? • Are outputs reasonable? • Could the model be erroneous? MATH 327 - Mathematical Modeling

  10. Identify the Problem or Opportunity Understand the System Formulate a Mathematical Model Verify the Model Select the Best Alternative Present the Results of the Analysis Implement and Evaluate Methodology of Operations Research*The Seven Steps to a Good OR Analysis • What if there are conflicting objectives? • Inherently the most difficult step. • This is where software tools will help us! MATH 327 - Mathematical Modeling

  11. Identify the Problem or Opportunity Understand the System Formulate a Mathematical Model Verify the Model Select the Best Alternative Present the Results of the Analysis Implement and Evaluate Methodology of Operations Research*The Seven Steps to a Good OR Analysis • Must communicate results in layman’s terms. • System must be user friendly! MATH 327 - Mathematical Modeling

  12. Identify the Problem or Opportunity Understand the System Formulate a Mathematical Model Verify the Model Select the Best Alternative Present the Results of the Analysis Implement and Evaluate Methodology of Operations Research*The Seven Steps to a Good OR Analysis • Users must be trained on the new system. • System must be observed over time to ensure it works properly. MATH 327 - Mathematical Modeling

  13. Successful OR Applications MATH 327 - Mathematical Modeling

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