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Operations Research
Operational processes can often be executed in many ways.
Because of the great number of choices it is hard to determine (and consequently execute) the optimal option that will maximize the utility.
Operations Research can be a solution to this problem.
Operations Research (or simply OR) is focused on the implementation of mathematical techniques and models within an organization to improve and optimize current processes.
Within the field of OR a specialist can translate a certain operational process to a mathematical model. This is done in the following way:
1. Every operational process has an objective, a certain goal. In the OR specialism this objective is converted to a mathematical objective function or formula. When the mathematical model is solved the objective function is maximized or minimized with the help of a couple of variables. These variables are the decision parameters of the model and represent the choices/options in real-life. Examples of an objective function are the minimizing of costs or the maximizing of a service level.
2. These variables have bounds/restrictions in the model. Examples of these include delivery times, product specifications and demand levels. The values of the variables will always respect these restrictions and stay in between certain quantitative bounds.
After the model has been formulated it can be solved with the aid of mathematical techniques like Linear Programming to determine the optimal solution. This can be done via an easy-to-use Graphical User Interface.
Moreover, now that we have created a good representation of a real process, we can ‘play with the reality’ by, for example, calculate what-if scenario’s. This gives great new insights into the organization on the whole.
Optimizations are possible in many places and OR-solutions can be found in every field or industry.
Some examples of applied OR are:
• A program that can determine the optimal routes for the distribution of an end-product.
• A simulation that determines the bottleneck in a production process.
• A program that schedules the employees of an organization.
• A program that controls the inventory optimally.
• A program that can value potential investments.
• A model that gives an advice how to enlighten a soccer pitch optimally.
• Et cetera...
Knowledge-center
LDM uses mathematical models to optimize their processes.
Next to this, LDM also established (in cooperation with the University of Tilburg) an OR-knowledge-center within its organization. This knowledge-center can mean something for your organization as well.
Do you want to apply OR or do you want to know more about this specialism? Please contact our Industrial Engineer. |
