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Operations Research

Operations Research

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Operations Research

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  1. Operations Research The OR Process

  2. What is OR? • It is a Process • It assists Decision Makers • It has a set of Tools • It is applicable in many Situations

  3. The Process: Recognize the Problem • Manufacturing • Planning • Design • Scheduling • Dealing with Defects • Dealing with Variability • Dealing with Inventory • …

  4. Other applications • Service Industries • Logistics • Transportation • Environment • Health Care • Situations with complexity • Situations with uncertainty

  5. Define the problem Delimit the system Select measures Determine variables Identify constraints Formulate the Problem

  6. Construct a Model • Math. Programming Model • Stochastic Model • Statistical Model • Simulation Model

  7. Find a Solution • Linear Programming • Nonlinear Programming • Regression • Direct Search • Stochastic Optimization • Trial and Error

  8. Establish a Procedure • Production software • Easy to use • Easy to maintain • Acceptable to the user

  9. Implement the Solution • Change for the organization • Change is difficult • Establish controls to recognize change in the situation

  10. The Goal is to Solve the Problem • The model must be valid • The model must be tractable • The solution must be useful

  11. Operations Research/Management Science OR/MS Professionals aim to provide rational bases for decision making by seeking to understand and structure complex situations and to use this understanding to predict system behavior and improve system performance. Much of this work is done using analytical and numerical techniques to develop and manipulate mathematical and computer models of organizational systems composed of people, machines, and procedures. Institute for Operations Research and the Management Sciences