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 – Planning
– Design
– Scheduling
Data – Dealing with Defects
– Dealing with Variability
– Dealing with Inventory
– …
 Other applications
• Service Industries
Situation • Logistics
• Transportation
• Environment
Data
• Health Care
• Situations with complexity
• Situations with uncertainty
 Formulate the Problem
Formulate the
Problem
Situation Problem
Statement

Data

• Define the problem • Determine variables

• Delimit the system • Identify constraints
• Select measures
 Construct a Situation
Formulate the
Problem
Problem

Model Statement

Data

Construct
• Math. Programming Model a Model

• Stochastic Model
Model
• Statistical Model
• Simulation Model
 Find a Situation
Formulate the
Problem
Problem

Solution Statement

Data

Construct
• Linear Programming a Model

• Nonlinear Programming Model

• Regression Find
a Solution
• Direct Search
• Stochastic Optimization
• Trial and Error Solution Tools
Establish a Formulate the
Problem
Situation
Procedure
Problem
Statement

• Production Data

software
Construct
a Model

• Easy to use Model

• Easy to Solution
maintain Find
a Solution

• Acceptable to Establish
a Procedure
the user
Solution Tools
 Implement Formulate the
Problem
Situation
the Solution
Problem
Statement

• Change for the Data

organization
Construct
a Model
Implement
the Solution
• Change is difficult Model
• Establish controls to Solution
recognize change in Find
a Solution
the situation Establish
a Procedure

Solution Tools
The Goal is to Formulate the

Solve the
Problem
Situation Problem
Implement a Solution Statement

Problem Data
Construct
a Model
Implement
• The model must be the Solution
Model
valid
• The model must be Solution
Find
a Solution
tractable Establish
a Procedure
• The solution must be
Test the Model
useful 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