1. Chapter 1
Introduction

2. 1.1 The Origins of Operations Research
Operations Research introduction videos: origin, development and applications
OR in a nutshell 1
OR in a nutshell 2
OR in everyday life and its origin
OR development and applications
OR in politics and recent military operations
OR in healthcare

3. 1.1 The Origins of Operations Research
Operations research (OR)
Seeks solutions to problems that arise in complex organizations
First used in the military during WW II
Managing allocation of scarce resources
Early 1950s: OR introduced into business, industry, and government

4. The Origins of Operations Research
Factors influencing growth of OR
Improved techniques
Simplex method
Computer revolution
Fast solution of complex computational problems
Microsoft Excel
Includes a Solver that can be used with various OR problems

5. 1.2 The Nature of Operations Research
Research on how to conduct and coordinate an organization’s activities OR
Is also called management science
Utilizes the scientific method
Must provide positive, understandable conclusions to the decision maker

6. The Nature of Operations Research
Process
Carefully observe and formulate the problem
Gather data
Construct a mathematical model
Test whether the model represents the actual situation
Modify the model as appropriate and validate again

7. The Nature of Operations Research
Broad viewpoint
Considers what is best for organization as a whole
Attempts to identify best possible course of action
Team approach
Consists of individuals with diverse backgrounds and skills
Necessary for considering ramifications of problem throughout organization

8. 1.3 The Rise of Analytics Together with Operations Research
Analytics (business analytics)
Introduced in 2006 by Thomas H. Davenport
Similar in concept to operations research
Transforms data into insight to make better decisions
Big data
Refers to the massive amounts of data available today

9. The Rise of Analytics Together with Operations Research
Categories of analytics applications
Descriptive analytics
Identify interesting patterns to describe what is currently happening
Predictive analytics
Using data to predict what will happen in the future
Prescriptive analytics
Using data to prescribe what should be done in the future

10. The Rise of Analytics Together with Operations Research
OR focuses on predictive and prescriptive analytics
Famous analytics applications
2012 U.S. presidential campaign
The Obama team used data to target voters and donors
Moneyball (book and subsequent movie)
The Oakland Athletics baseball team used analytics to identify athletes to draft

11. 1.4 The Impact of Operations Research
International Federation of Operational Research Societies (IFORS)
Consists of a few dozen member countries
Each country has a national OR society
Institute for Operations Research and the Management Sciences (INFORMS)
International society headquartered in U.S.
Publishes leading journals
Analytics, Interfaces

12. 1.5 Algorithms and OR Courseware
Systematic solution procedures for solving certain types of problems
OR Courseware
Available at
OR Tutor
Part of OR Courseware
Contains demonstration examples for learning

13. Algorithms and OR Courseware
Interactive Operations Research Tutorial
Contained in OR Courseware
Includes interactive procedures for executing algorithms
Computer performs computations
Students focus on learning algorithmic logic
OR Courseware introduces four popular software packages
Used for executing algorithms

14. Algorithms and OR Courseware
Microsoft Excel
Solver add-in (Frontline Systems, Inc.)
Analytic Software Platform for Education (ASPE)
From Frontline Systems
LINDO and LINGO
Student versions can be downloaded for free
Modeling system MPL
Contains solvers for complex problems

15. Algorithms and OR Courseware
Website contains:
Learning aids for Chapters 3 and higher
Solved Examples for each chapter (from Chapter 3 onward)
Supplementary examples