Operations research (OR) is an analytical method of problem-solving and decision-making that is useful in the management of organizations. In operations research, problems are broken down into basic components and then solved in defined steps by mathematical analysis.
The process of operations research can be broadly broken down into the following steps:
Disciplines that are similar to, or overlap with, operations research include statistical analysis, management science, game theory, optimization theory, artificial intelligence and network analysis. All of these techniques have the goal of solving complex problems and improving quantitative decisions.
The concept of operations research arose during World War II by military planners. After the war, the techniques used in their operations research were applied to addressing problems in business, the government and society.
There are three primary characteristics of all operations research efforts:
The field of operations research provides a more powerful approach to decision making than ordinary software and data analytics tools. Employing operations research professionals can help companies achieve more complete datasets, consider all available options, predict all possible outcomes and estimate risk. Additionally, operations research can be tailored to specific business processes or use cases to determine which techniques are most appropriate to solve the problem.
Operations research can be applied to a variety of use cases, including:
05 Sep 2019