Professional Documents
Culture Documents
OR1 01 Modelingintro
OR1 01 Modelingintro
Ling-Chieh Kung
OR I: Course Overview 1 / 34
Motivation Business analytics Mathematical programming History Preview for this course
Road map
I Motivation.
I Business analytics.
I Mathematical programming.
I History.
I Preview for this course.
OR I: Course Overview 2 / 34
Motivation Business analytics Mathematical programming History Preview for this course
Resource allocation
I What is management?
I Someone said:
I “Management is the attainment of organizational goals in an effective
and efficient manner through planning, organizing, leading, and
controlling organizational resources.”1 (Daft, 2014, p. 7)
I What are resources in an organization?
Resource allocation
OR I: Course Overview 4 / 34
Motivation Business analytics Mathematical programming History Preview for this course
OR I: Course Overview 5 / 34
Motivation Business analytics Mathematical programming History Preview for this course
OR I: Course Overview 6 / 34
Motivation Business analytics Mathematical programming History Preview for this course
Industry applications
I Key decisions:
I How to deliver 6.5 millions items to more than 220 countries each day?
I In each region, where to build distribution hubs?
I In each distribution hub, how to classify and sort items?
I In each city, how to choose routes?
I What do you need?
I Well-designed information systems.
I Operations Research!
OR I: Course Overview 7 / 34
Motivation Business analytics Mathematical programming History Preview for this course
Industry applications
I Key decisions:
I How to determine the cities to connect?
I How to schedule more than 2000 flights per day?
I How to assign crews to flights?
I How to reassign crews immediately when there is an emergency?
I What do you need?
I Well-designed information systems.
I Operations Research!
OR I: Course Overview 8 / 34
Motivation Business analytics Mathematical programming History Preview for this course
Road map
I Motivation.
I Business analytics.
I Mathematical programming.
I History.
I Preview for this course.
OR I: Course Overview 10 / 34
Motivation Business analytics Mathematical programming History Preview for this course
Business analytics
I Today, everybody
talks about business
analytics.
I Master of business
administration
(MBA) becomes
master of business
analytics (or master
of science in business
analytics).
OR I: Course Overview 11 / 34
Motivation Business analytics Mathematical programming History Preview for this course
OR I: Course Overview 12 / 34
Motivation Business analytics Mathematical programming History Preview for this course
OR I: Course Overview 13 / 34
Motivation Business analytics Mathematical programming History Preview for this course
OR I: Course Overview 14 / 34
Motivation Business analytics Mathematical programming History Preview for this course
OR I: Course Overview 15 / 34
Motivation Business analytics Mathematical programming History Preview for this course
I Advantages:
I It describes a problem in a precise and concise way (among people and
between a person and a computer).
I It facilitates the use of computers to solve a problem whose model has
been formulated.
I Disadvantages:
I Some of the problems are hard to be formulated into mathematical
models.
I Some critical information is missing.
I The aim of this course: Through various examples, we want to let
people get an concrete idea about:
I What may be solved by operations research.
I What cannot be solved by operations research.
OR I: Course Overview 16 / 34
Motivation Business analytics Mathematical programming History Preview for this course
Road map
I Motivation.
I Business analytics.
I Mathematical programming.
I History.
I Preview for this course.
OR I: Course Overview 17 / 34
Motivation Business analytics Mathematical programming History Preview for this course
OR I: Course Overview 18 / 34
Motivation Business analytics Mathematical programming History Preview for this course
I Choosing items
according to their
weight-value ratios
results in items 1, 2, 3, ID Item Weight Value Value / Weight
4, and 5. The total
1 compass 0.5 6 12
value is 22. 2 hatchet 1.5 5 3.33
I The optimal solution is 3 matches 0.4 4 10
to bring items 1, 2, 3, 4 tarpaulin 1 4 4
4, and 6. The total 5 telescope 1.1 3 2.73
6 cylinder 1.6 4 2.5
value is 23. 7 Rilakkuma 0.8 1 1.25
I How may we model or
formulate this
problem?
OR I: Course Overview 19 / 34
Motivation Business analytics Mathematical programming History Preview for this course
and
xi ∈ {0, 1} ∀i = 1, ..., 7.
OR I: Course Overview 20 / 34
Motivation Business analytics Mathematical programming History Preview for this course
OR I: Course Overview 21 / 34
Motivation Business analytics Mathematical programming History Preview for this course
OR I: Course Overview 22 / 34
Motivation Business analytics Mathematical programming History Preview for this course
OR I: Course Overview 23 / 34
Motivation Business analytics Mathematical programming History Preview for this course
OR I: Course Overview 24 / 34
Motivation Business analytics Mathematical programming History Preview for this course
OR I: Course Overview 25 / 34
Motivation Business analytics Mathematical programming History Preview for this course
Road map
I Motivation.
I Business analytics.
I Mathematical programming.
I History.
I Preview for this course.
OR I: Course Overview 26 / 34
Motivation Business analytics Mathematical programming History Preview for this course
OR I: Course Overview 27 / 34
Motivation Business analytics Mathematical programming History Preview for this course
Road map
I Motivation.
I Business analytics.
I Mathematical programming.
I History.
I Preview for this course.
OR I: Course Overview 31 / 34
Motivation Business analytics Mathematical programming History Preview for this course
Course structure
OR I: Course Overview 32 / 34
Motivation Business analytics Mathematical programming History Preview for this course
Course contents
OR I: Course Overview 33 / 34
Motivation Business analytics Mathematical programming History Preview for this course
OR I: Course Overview 34 / 34