Operations Research Applications Research Articles

Data-driven robust optimization

The last decade witnessed an explosion in the availability of data for operations research applications. Motivated by this growing availability, we propose a novel schema for utilizing data to design uncertainty sets for robust optimization using statistical hypothesis tests. The approach is flexible and widely applicable, and robust optimization problems built from our new sets are computationally tractable, both theoretically and practically. Furthermore, optimal solutions to these problems enjoy a strong, finite-sample probabilistic guarantee whenever the constraints and objective function are concave in the uncertainty. We describe concrete procedures for choosing an appropriate set for a given application and applying our approach to multiple uncertain constraints. Computational evidence in portfolio management and queueing confirm that our data-driven sets significantly outperform traditional robust optimization techniques whenever data are available.

Theory building using SAP-LAP linkages: an application in the context of disaster management

Management of disaster relief operations is a complex task involving pre-disaster, during disaster and post-disaster operations. It requires the involvement and coordination of multiple actors and processes. Traditionally, operations research applications in general and specifically for disaster relief have been made, largely, on quantitative and analytical front. There is a lack of qualitative and interpretive approaches in operations research applications. This paper uses an interpretive method, SAP-LAP (situation, actor, process, learning, action, performance) framework and linkages, in the context of disaster management. It enables to develop a theoretical framework for disaster management answering the fundamental questions of theory building. The paper first provides a selective review of disaster management and identifies the gap in building theoretical framework for the same. It then describes the methodology in terms of SAP-LAP framework and linkages with a broad appreciation of its application in operations as well as strategic management. This methodology is applied to develop a theoretical framework for disaster management. The paper finally discusses both the theoretical and practical implications of the proposed framework and concludes with future directions of research.

Book Reviews

In Book Reviews, we review an extensive and diverse range of books. They cover theory and applications in operations research, statistics, management science, econometrics, mathematics, computers, and information systems. In addition, we include books in other fields that emphasize technical applications. The editor will be pleased to receive an email from those willing to review a book, with an indication of specific areas of interest. If you are aware of a specific book that you would like to review, or that you think should be reviewed, please contact the editor. The following books are reviewed in this issue of Interfaces, 47(1), January–February 2017: Decision Science for Housing and Community Development: Localized and Evidence-Based Responses to Distressed Housing and Blighted Communities, Michael P. Johnson, Jeffrey M. Keisler, Senay Solak, David A. Turcotte, Armagan Bayram, and Rachel Bogardus Drew; Linear and Mixed Integer Programming for Portfolio Optimization, Renata Mansini, Wlodzimierz Ogryczak, and M. Grazia Speranza.

Operations Research Transforms the Scheduling of Chilean Soccer Leagues and South American World Cup Qualifiers

For the past 12 years, the Chilean Professional Soccer Association (ANFP) has applied operations research (OR) techniques to schedule soccer leagues in Chile. Using integer programming-based methods, the ANFP decides which matches are played in each round, taking into account various objectives, such as holding down costs and ensuring engaging tournaments for the fans. It has scheduled more than 50 tournaments using this approach, resulting in an estimated direct economic impact of about $59 million, including reductions in television broadcaster operating costs, growth in soccer pay-television subscriptions, increased ticket revenue, and lower travel costs for the teams. This application of OR has also had significant noneconomic impacts. First, the incorporation of team requirements and various sporting criteria has improved process transparency and schedule fairness, increasing fans’ interest in local professional tournaments; second, because of the high portability of these techniques, they have been used successfully to schedule sports leagues in other countries (examples include volleyball and basketball in Argentina, and the South American qualifiers for the 2018 Soccer World Cup). Furthermore, the models and methods used in this scheduling application have been disseminated widely, helping to promote OR as an effective tool for addressing practical problems. Our outreach activities have reached thousands of high school and university students in four countries and a more general audience of millions of television viewers and Internet users.

Book Reviews

In Book Reviews, we review an extensive and diverse range of books. They cover theory and applications in operations research, statistics, management science, econometrics, mathematics, computers, and information systems. In addition, we include books in other fields that emphasize technical applications. The editor will be pleased to receive an email from those willing to review a book, with an indication of specific areas of interest. If you are aware of a specific book that you would like to review, or that you think should be reviewed, please contact the editor. The following books are reviewed in this issue of Interfaces, 46(6), November–December 2016: Only Humans Need Apply, Thomas H. Davenport and Julia Kirby; Success and Luck: Good Fortune and the Myth of Meritocracy, Robert H. Frank; and Multiobjective Linear Programming, An Introduction, Dinh The Luc.

Introduction: Special Issue on Operations Research Applications in the Energy Industry

This special issue presents a tutorial and five applications of operations research in the energy industry. The tutorial discusses the use of mixed-complementarity problems for modeling energy policies. The applications include optimizing plant dispatch decisions in an electricity grid, managing oil and gas pipelines, securing cost-effective coal supplies for power plants, and implementing inspection plans for energy-efficiency programs at an electric utility.

A distributed simulation methodological framework for OR/MS applications

Distributed Simulation (DS) allows existing models to be composed together to form simulations of large-scale systems, or large models to be divided into models that execute on separate computers. Among its claimed benefits are model reuse, speedup, data privacy and data consistency. DS is arguably widely used in the defence sector. However, it is rarely used in Operations Research and Management Science (OR/MS) applications in areas such as manufacturing and healthcare, despite its potential advantages. The main barriers to use DS in OR/MS are the technical complexity in implementation and a gap between the world views of DS and OR/MS communities. In this paper, we propose a new method that attempts to link together the methodological practices of OR/MS and DS. Using a representative case study, we show that our methodological framework simplifies significantly DS implementation.

The New Generation of Operations Research Methods in Supply Chain Optimization: A Review

The possibilities of applying Operations Research (O.R.) techniques in the design of real-world systems are vast. The optimization and design of the supply chain network (SCN) is one of the relevant topics that has directed the attention of many scholars. Sound decisions in this regard, including the proper selection of the facility’s location, transportation modes and routes and inventory management policies, can noticeably improve the systems performance. Over 380 articles published between 2005 and 2016 in the ISI/Web of Science database have applied advanced O.R. techniques in SCN optimization studies. This paper offers a systematic review of these published contributions by focusing on two categories of O.R. approaches most recently applied for the design of SC systems: integrated mathematical modeling and simulation-optimization (S-O) frameworks. A taxonomy analysis of the mentioned approaches is presented based on the supply chain elements. A bibliometric analysis is also conducted to provide technical insights into the possible gaps in the field. Moreover, the relevant studies on SC sustainability are highlighted. The research results are supportive of the S-O frameworks as either an alternative approach or an effective solution method for the integrated problems. The research outcomes can provide researchers in the field with useful details of the integrated problems and S-O frameworks as the most recent O.R. methodologies in the field of SC optimization.

Book Reviews

In Book Reviews, we review an extensive and diverse range of books. They cover theory and applications in operations research, statistics, management science, econometrics, mathematics, computers, and information systems. In addition, we include books in other fields that emphasize technical applications. The editor will be pleased to receive an email from those willing to review a book, with an indication of specific areas of interest. If you are aware of a specific book that you would like to review, or that you think should be reviewed, please contact the editor. The following books are reviewed in this issue of Interfaces, 46(5), September–October 2016: An Economist in the Real World: The Art of Policymaking in India, Kaushik Basu; and Supply Chain Configuration: Concepts, Solutions, and Applications, Charu Chandra and Janis Grabis.

Book Reviews

In Book Reviews, we review an extensive and diverse range of books. They cover theory and applications in operations research, statistics, management science, econometrics, mathematics, computers, and information systems. In addition, we include books in other fields that emphasize technical applications. The editor will be pleased to receive an email from those willing to review a book, with an indication of specific areas of interest. If you are aware of a specific book that you would like to review, or that you think should be reviewed, please contact the editor. The following books are reviewed in this issue of Interfaces, 46(4), July–August 2016: Phishing for Phools: The Economics of Manipulation and Deception, George A. Akerlof and Robert J. Shiller; and Applied Probability: Models and Intuition, Arnold I. Barnett.

Proceedings of the 2015 Mathematics and Statistics in Industry Study Group

This special Section of the ANZIAM Journal (Electronic Supplement) contains the refereed papers from the 2015 Mathematics and Statistics in Industry Study Group (MISG 2014) held at QUT from 28 to 31 January 2015. The MISG is a special interest meeting of ANZIAM, the Australia and New Zealand Industrial and Applied Mathematics (ANZIAM) division of the Australian Mathematics Society. The MISG meetings take place annually and provide a forum where projects proposed by industry can be worked on intensively, by high profile scientists in the fields of Applied Mathematics, Statistics and Operations Research, from Australia, New Zealand and the world beyond, along with representatives from the industries proposing the projects.

Proceedings of the 2014 Mathematics and Statistics in Industry Study Group

This special Section of the ANZIAM Journal (Electronic Supplement) contains the refereed papers from the 2014 Mathematics and Statistics in Industry Study Group (MISG 2014) held at QUT from 28 January to 1 February 2014. The MISG is a special interest meeting of ANZIAM, the Australia and New Zealand Industrial and Applied Mathematics (ANZIAM) division of the Australian Mathematics Society. The MISG meetings take place annually and provide a forum where projects proposed by industry can be worked on intensively, by high profile scientists in the fields of Applied Mathematics, Statistics and Operations Research, from Australia, New Zealand and the world beyond, along with representatives from the industries proposing the projects.

Operations research applications in hospital operations: Part III

ABSTRACTHospital decision and policy makers are tasked with developing innovative strategies to provide patients with quality healthcare in an effective and efficient manner. Operations research (OR) methods have been applied to hospital operations to improve effectiveness and efficiency. In this three-part article, we review OR applications in hospital environments. In particular, we develop a timeline of events in US healthcare from the late 1940s to 2015 and separate the timeline into four eras: Expansion, Cost Control, Reform, and Accountability. Part I of the article describes the Eras of Expansion and Cost Control, Part II describes the Era of Reform, and Part III describes the Era of Accountability. Research performed during each era is contextualized and stratified by OR method and hospital operations application area. The series of three articles provides a comprehensive review of publications detailing operations research applications in hospital operations. The following is Part III, which details the OR applications in hospital operation area publications from 2010 to January 2015. During the Era of Accountability, the most commonly used OR methods were discrete event simulation and deterministic modeling (optimization), while the most common hospital operation areas where OR methods were applied were staff, room, and patient scheduling, as well as general patient flow assessment.

Book Reviews

In Book Reviews, we review an extensive and diverse range of books. They cover theory and applications in operations research, statistics, management science, econometrics, mathematics, computers, and information systems. In addition, we include books in other fields that emphasize technical applications. The editor will be pleased to receive an email from those willing to review a book, with an indication of specific areas of interest. If you are aware of a specific book that you would like to review, or that you think should be reviewed, please contact the editor. The following books are reviewed in this issue of Interfaces, 46(3), May–June 2016: Inequality: What Can Be Done?, Anthony B. Atkinson; and R for Marketing Research and Analytics, Chris Chapman and Elea McDonnell Feit.

Test-driven simulation modelling: A case study using agent-based maritime search-operation simulation

Model verification and validation (V&V) is one of the most important activities in simulation modelling. Model validation is especially challenging for Agent-Based Simulation (ABS). Techniques that can help to improve V&V in simulation modelling are needed. This paper proposes a V&V technique called Test-Driven Simulation Modelling (TDSM) which applies techniques from Test-Driven Development in software engineering to simulation modelling. The main principle in TDSM is that a unit test for a simulation model has to be specified before the simulation model is implemented. Hence, TDSM explicitly embeds V&V in simulation modelling. We use a case study in maritime search operations to demonstrate how TDSM can be used in practice. Maritime search operations (and search operations in general) are one of the classic applications of Operational Research (OR). Hence, we can use analytical models from the vast search theory literature for unit tests in TDSM. The results show that TDSM is a useful technique in the verification and validation of simulation models, especially ABS models. This paper also shows that ABS can offer an alternative modelling approach in the analysis of maritime search operations.

Book Reviews

In Book Reviews, we review an extensive and diverse range of books. They cover theory and applications in operations research, statistics, management science, econometrics, mathematics, computers, and information systems. In addition, we include books in other fields that emphasize technical applications. The editor will be pleased to receive an email from those willing to review a book, with an indication of specific areas of interest. If you are aware of a specific book that you would like to review, or that you think should be reviewed, please contact the editor. The following books are reviewed in this issue of Interfaces, 46(2), March–April 2016: Causes of Supply Chain Disruptions: An Empirical Analysis in Cold Chains for Food and Pharmaceuticals, Verena Brenner; Multichannel Commerce: A Consumer Perspective on the Integration of Physical and Electronic Channels, Manuel Trenz.

Operations research applications in hospital operations: Part II

ABSTRACTHospital managers are tasked with developing innovative strategies to provide patients with quality healthcare in an effective and efficient manner. Operations research (OR) methods have been applied to hospital operations to improve effectiveness and efficiency.In this three-part article, we review OR applications in hospital environments. In particular, we develop a timeline of events in US healthcare from the late 1940s to 2015 and separate the timeline into four eras: Expansion, Cost Control, Reform, and Accountability. Part I of the article describes the Eras of Expansion and Cost Control, Part II describes the Era of Reform, and Part III describes the Era of Accountability. Research performed during each era is contextualized and stratified by OR method and hospital operations application area.The following article is Part II of the three-part article, which details the OR applications in hospital operation area publications from 1990 to 2009. During the Era of Reform, the most commonly used OR methods were discrete event simulation and deterministic modeling (optimization), while the hospital operations areas where OR methods were applied were staff, room, and patient scheduling, as well as general patient flow assessment.

Book Reviews

In Book Reviews, we review an extensive and diverse range of books. They cover theory and applications in operations research, statistics, management science, econometrics, mathematics, computers, and information systems. In addition, we include books in other fields that emphasize technical applications. The editor will be pleased to receive an email from those willing to review a book, with an indication of specific areas of interest. If you are aware of a specific book that you would like to review, or that you think should be reviewed, please contact the editor. The following books are reviewed in this issue of Interfaces, 46(1), January–February 2016: Operations Planning: Mixed Integer Optimization Models, Joseph Geunes; Extension of Data Envelopment Analysis with Preference Information: Value Efficiency, Tarja Joro and Pekka J. Korhonen; and Rational Action: The Sciences of Policy in Britain and America, 1940–1960, William Thomas.

Maximizing the U.S. Army’s Future Contribution to Global Security Using the Capability Portfolio Analysis Tool (CPAT)

Recent budget reductions have posed tremendous challenges to the U.S. Army in managing its portfolio of ground combat systems (tanks and other fighting vehicles), thus placing many important programs at risk. To address these challenges, the Army and a supporting team developed and applied the Capability Portfolio Analysis Tool (CPAT) to optimally invest in ground combat modernization over the next 25–35 years. CPAT provides the Army with the analytical rigor needed to help senior Army decision makers allocate scarce modernization dollars to protect soldiers and maintain capability overmatch. CPAT delivers unparalleled insight into multiple-decade modernization planning using a novel multiphase mixed-integer linear programming technique and illustrates a cultural shift toward analytics in the Army’s acquisition thinking and processes. CPAT analysis helped shape decisions to continue modernization of the $10 billion Stryker family of vehicles (originally slated for cancellation) and to strategically reallocate over $20 billion to existing modernization programs by not pursuing the Ground Combat Vehicle program as originally envisioned. More than 40 studies have been completed using CPAT, applying operations research methods to optimally prioritize billions of taxpayer dollars and allowing Army acquisition executives to base investment decisions on analytically rigorous evaluations of portfolio trade-offs.

Prioritizing Interrelated Road Projects Using Metaheuristics

AbstractProjects are considered interrelated when their benefits or costs depend on which other projects are implemented. The timing of such projects may also complicate their analysis. Selection and scheduling of interrelated projects is a challenging optimization problem that has many applications in various fields, including economics, operations research, business, management, and transportation. The goal is to determine which projects should be selected and when they should be funded in order to minimize the total system cost over a planning horizon. Finding the optimal solution for such problems often requires extensive evaluation of possible solutions because of the complex nature and noisy surface of their solution space. This paper applies three metaheuristic algorithms including a genetic algorithm (GA), simulated annealing (SA), and Tabu search (TS) in seeking efficient and consistent solutions to the selection and scheduling problem. These approaches are applied to a special case of link capac...