Chapter 1 Introduction

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

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

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

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

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

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

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

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

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

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

1.5 Algorithms and OR Courseware Systematic solution procedures for solving certain types of problems OR Courseware Available at www.mhhe.com/hillier OR Tutor Part of OR Courseware Contains demonstration examples for learning

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

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

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