Operations Research:
Making More Out of Information Systems
Prof. Gloria Grazioli
What is Operations Research?
Operations
The activities carried out in an organization.
Research
The process of observation and testing characterized by the scientific method. Situation, problem statement, model construction, validation, experimentation, candidate solutions.
Model
An abstract representation of reality.
Mathematical, physical, narrative, set of rules in computer program.
Systems Approach
Include broad implications of decisions for the organization at each stage in analysis. Both quantitative and qualitative factors are considered.
Optimal Solution
A solution to the model that optimizes (maximizes or minimizes) some measure of merit over all feasible solutions.
Team
A group of individuals bringing various skills and viewpoints to a problem.
Operations Research Techniques
A collection of general mathematical models, analytical procedures, and algorithms.
Definition of OR
OR professionals aim to provide a rational basis 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.
Mathematics in Operation
Mathematical Solution Method (Algorithm) Real Practical Problem
Mathematical (Optimization) Problem
x2
Computer Algorithm
Human Decision-Maker
Decision Support Software System
Decision Support
Decision Support Tool Interface
• Describe system
• Define boundaries
• State assumptions
• Select performance measures
• Define variables
• Define constraints
• Identify data requirements
Problem Solving Stages
Mathematical Solution Method (Algorithm) Real Practical Problem
Mathematical (Optimization) Problem
Computer Algorithm
Human Decision-Maker
Decision Support Software System
Staff Rostering at Childcare Centre
Mathematical Programming
Software Program
Excel with VBA
Childcare Centre Manager
Constructing a Model
Problem must be translated from verbal, qualitative terms to
mathematical, quantitative terms
A mathematical model is a collection of
functional relationships by which allowable actions are delimited and evaluated
Implementation
A solution to a problem usually implies changes for some individuals in the organization
Often there is resistance to change, making the implementation difficult
A user-friendly system is needed
Those affected should go through training
Some applications
• Airline, Gate Scheduling
• Telecommunications/Road/Rail Network Design
• Organization Supply Chain Strategy (DC, Plant,..)
• Just-in-Time Manufacturing Planning
• Retail Shop floor Layout
• Revenue, Pricing and Promotions
• Demand Forecasting
• Project Planning
• Economics – Micro/Macro
link
https://www.youtube.com/watch?v=-aIV14ZLqOM https://www.youtube.com/watch?v=ILWbaWrjgU4 https://www.youtube.com/watch?v=tbUcC7C01vk
