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

Linear Programming
Construct
a Model

Nonlinear Programming Model

Regression Find
Direct Search a Solution

Stochastic Optimization
Trial and Error Solution Tools
Establish a Formulate the
Problem

Procedure
Situation Problem
Statement

Production Data

software Construct
a Model

Easy to use Model

Easy to Solution
maintain Find
a Solution

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

the Solution
Situation Problem
Statement

Change for the Data

organization Implement
Construct
a Model
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 Situation

Problem

Implement a Solution
Problem
Statement

Problem Data
Construct
a Model
Implement
The model must be the Solution
Model
valid
The model must be Solution
Find

tractable
a Solution
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