Operations Research

The OR Process

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

The Process: Recognize the Problem

Manufacturing
Situation

Data

Planning Design Scheduling Dealing with Defects Dealing with Variability Dealing with Inventory

Other applications
Situation

Data

Service Industries Logistics Transportation Environment Health Care Situations with complexity Situations with uncertainty

Formulate the Problem

Situation
Formulate the Problem

Problem Statement

Data

Define the problem Delimit the system Select measures

Determine variables Identify constraints

Construct a Model

Situation

Formulate the Problem

Problem Statement

Data

Math. Programming Model Stochastic Model Statistical Model Simulation Model

Construct a Model

Model

Find a Solution

Situation

Formulate the Problem

Problem Statement

Data

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

Construct a Model

Model

Tools

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

Situation

Formulate the Problem

Problem Statement

Data

Construct a Model

Model

Solution
Find a Solution

Establish a Procedure
Solution
Tools

Implement the Solution

Situation

Formulate the Problem

Problem Statement

Data Change for the organization Implement the Solution Change is difficult Establish controls to Solution recognize change in Establish the situation a Procedure

Construct a Model

Model

Find a Solution

Solution

Tools

The Goal is to Solve the Problem

The model must be valid The model must be tractable The solution must be useful

Situation

Formulate the Problem

Implement a Solution

Problem Statement

Data Construct a Model Implement the Solution

Model Solution
Find a Solution Establish a Procedure Test the Model and the Solution

Solution

Tools

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