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Introduction To Operations Research

Operations research provides a scientific approach to decision making by building mathematical models of organizational systems composed of multiple interacting components. It draws on various fields like engineering, management, and mathematics to analyze complex problems in business. The methodology typically involves 7 steps: defining objectives and scope, collecting relevant data, understanding system interactions, selecting an appropriate model, validating the model's accuracy, analyzing outputs, and communicating results effectively to stakeholders. Operations research has helped many companies optimize operations and save millions of dollars annually in various industries.

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168 views13 pages

Introduction To Operations Research

Operations research provides a scientific approach to decision making by building mathematical models of organizational systems composed of multiple interacting components. It draws on various fields like engineering, management, and mathematics to analyze complex problems in business. The methodology typically involves 7 steps: defining objectives and scope, collecting relevant data, understanding system interactions, selecting an appropriate model, validating the model's accuracy, analyzing outputs, and communicating results effectively to stakeholders. Operations research has helped many companies optimize operations and save millions of dollars annually in various industries.

Uploaded by

Skr King
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPT, PDF, TXT or read online on Scribd
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Introduction to Operations Research

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 2
Modeling

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

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 4

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

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

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

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

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

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

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Methodology of Operations Research* The Seven Steps to a Good OR Analysis


Must communicate results in laymans terms. System must be user friendly!

MATH 327 - Mathematical Modeling

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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

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Successful OR Applications
Company Hewlett Packard Taco Bell Proctor & Gamble Delta Airlines AT&T Yellow Freight Systems, Inc. San Francisco Police Dept. Bethlehem Steel North American Van Lines Citgo Petroleum United Airlines Dairyman's Creamery Phillips Petroleum Year 1998 1998 1997 1994 1993 1992 1989 1989 1988 1987 1986 1985 1983 Problem Designing buffers into production line Employee scheduling Redesign production & distributon system Assigning planes to routes Call center design Design trucking network Patrol Scheduling Design an Ingot Mold Stripper Assigning loads to drivers Refinery operations & distribution Scheduling reservation personnel Optimal production levels Equipment replacement Techniques Used Queuing models IP, Forecasting, Simulation Transportation models Integer Programming Queuing models, Simulation Network models, Forecasting, Simulation Linear Programming Integer Programming Network modeling Linear Programming, Forecasting LP, Queuing, Forecasting Linear Programming Network modeling Annual Savings $280 million $13 million $200 million $100 million $750 million $17.3 million $11 million $8 million $2.5 million $70 million $6 million $48,000 $90,000

MATH 327 - Mathematical Modeling

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