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