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Chapter 2 : Overview of the OR
modeling Approach
Mathematical method of OR - quantitative
techniques form the main part of what is
known about OR.
Usual phases of OR study is the following:
2011/1/31 Introduction to Operations Research Page 1 OR
School of Management,HUST
Usual Phase of OR Study
Define the problem of interest and gather relevant data.
Formulate a mathematical model to represent the
problem.
Develop a computer-base procedure for deriving
solution to the problem from the model.
Test the model and refine it as needed.
Prepare for the ongoing application of the model as
proscribed
implement
2011/1/31 Introduction to Operations Research Page 2 OR
School of Management,HUST
2.1 Define the Problem and
Gather Data
Determining appropriate objective for the problem to
be considered.
For entire organization, usually the objective that are
formulated should be those of entire organization – OR study
seeks solution that are optimal for overall organization rather
than suboptimal solution that are best for only one
component.
For profit-making organization, OR study use long-run profit
maximization as the sole objective.
However, many profit-making organization do not use this
approach and use satisfactory profits combined with other
objective.
2011/1/31 Introduction to Operations Research Page 3 OR
School of Management,HUST
2.1 Define the Problem and
Gather Data
Gathering relevant data about the problem
OR team spend large amount of time gathering relevant data
to provide the needed input of the mathematical model.
Install a new Management Information System to collect the
necessary data and spend time trying to i
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