Operations Research
The OR Process
What is OR?
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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
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Planning
Design
Scheduling
Dealing with Defects
Dealing with Variability
Dealing with Inventory
…
Other applications
Situation
Data
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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
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Math. Programming Model
Stochastic Model
Statistical Model
Simulation Model
Construct
a Model
Model
Find a
Solution
Situation
Formulate the
Problem
Problem
Statement
Data
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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
Data
• Change for the
organization
Implement
the Solution
• Change is difficult
• Establish controls to
Solution
recognize change in
Establish
the situation
a Procedure
Formulate the
Problem
Problem
Statement
Construct
a Model
Model
Find
a Solution
Solution
Tools
The Goal is to
Solve the
Problem
Formulate the
Problem
Situation
Problem
Statement
Implement a Solution
Data
Construct
a Model
• The model must be
valid
• The model must be
tractable
• The solution must be
useful
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