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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 .

machines. 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. Institute for Operations Research and the Management Sciences . and procedures.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.