Introduction to

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• Introduction to
• Operations Research

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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.

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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

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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

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Methodology of Operations ResearchThe 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.
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Methodology of Operations ResearchThe Seven
Steps to a Good OR Analysis

• What are the objectives?
• Is the proposed problem too narrow?
• Is it too broad?

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Methodology of Operations ResearchThe 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?

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Methodology of Operations ResearchThe Seven
Steps to a Good OR Analysis

• What kind of model should be used?
• Is the model accurate?
• Is the model too complex?

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Methodology of Operations ResearchThe Seven
Steps to a Good OR Analysis

• Do outputs match current observations for current
  inputs?
• Are outputs reasonable?
• Could the model be erroneous?

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Methodology of Operations ResearchThe 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!

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Methodology of Operations ResearchThe Seven
Steps to a Good OR Analysis

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

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Methodology of Operations ResearchThe 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.

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Successful OR Applications