Operations Research Methodologies Research Articles

Application of Electre III and DEA methods in the BPR of a bank branch network

Operational research methodologies are a powerful tool assisting managers in their effort to critically review business data and decide on future business actions. This paper presents the application of Electre multi-criteria methodology and Data Envelopment Analysis, as a part of a small commercial bank's ongoing effort to reengineer its branch network. We focus on two particular problems: first, categorization of the branches so as to apply adequate equivalent organizational schemas and second the assessment of relative efficiency of human resources.

The Science of Sports: Combining Quantitative Analysis and Sports Applications in an Undergraduate Course

I present the development of a one-semester undergraduate course devoted to operations research (O.R.) and statistical methodologies in sports, specifically targeted for first-year collegiate students. In particular, this class explores decision analysis and linear regression using sports as the sole basis of application. Term projects and oral presentations permit student groups the opportunity to investigate specific quantitative applications in this field. Essentially, I endeavor to couple a student's inherent interest in sports with training in basic analytical approaches.

A data envelopment analysis approach to measure the mutual fund performance

In this paper we present a model which can be used to evaluate the performance of mutual funds. This model applies an operational research methodology, called data envelopment analysis (DEA), which allows to measure the relative efficiency of decision making units. This approach allows to define mutual fund performance indexes that can take into account several inputs and thus consider different risk measures and, above all, the investment costs (subscription costs and redemption fees). Moreover, the DEA approach can naturally envisage other output indicators, in addition to the mean return considered by the traditional indexes. Therefore, a generalized version of the DEA mutual fund performance indexes is defined, too, which includes among the outputs a stochastic dominance indicator that reflects both the investors' preference structure and the time occurrence of the returns. In addition, the procedure allows to identify, for each mutual fund, a composite portfolio which can be considered as a particular benchmark. The performance indexes proposed are tested on empirical data.

Primal-dual methods for sustainable harvest scheduling problems

Timber harvest schedules form the heart of forest resource management. The operations research methodology is applied to resolving the multi-product, multi-period sustainable timber harvest scheduling problems, where area constraints, harvest flow constraints, and ending inventory constraints are imposed. By taking advantage of the model characterization of block diagonal constraints with multiple sets of network sub-problems and the set of coupling constraints, an efficient algorithm is explored. Specifically, a primal-dual method of closed-form solutions is first developed to solve the network sub-problems on the individual basis. Then, a primal-dual steepest-edge algorithm that achieves the global optimum is presented. A numerical example illustrating steps of the solution procedure is presented. The proposed algorithm is implemented, and its performance is compared with that of the AMPL-CPLEX package. The proposed primal-dual algorithm achieves, on the average, an approximately four to one reduction in iteration numbers and an about eight to one reduction in the CPU execution time. Scope and purpose Timber harvest schedules form the heart of forest resource management. This paper presents the model formulation, structure identification, and algorithm explored for resolving the multi-product, multi-period harvest scheduling problem, where area constraints, harvest flow constraints, and ending inventory constraints serve as the basis of a sustainable forest policy. The work applies the mathematical programming methodology to the forest management regime. To streamline the solution procedure, we first identify the block diagonal constraint structure, the network sub-problems, and a set of coupling constraints. By employing a primal-dual algorithm using only closed-form solutions that resolves the network sub-problems, we explore a primal-dual steepest-edge algorithm that achieves the optimal harvest schedule. The proposed algorithm is coded in the Borland C++ programming language and run on a personal computer. For comparison, the package of AMPL-CPLEX and the proposed method are applied to solving a set of arbitrarily generated sample problems. The proposed primal-dual algorithm outperforms the general-purpose package in both iteration numbers and the CPU execution time.

An interactive multiobjective programming approach to combinatorial data analysis

Combinatorial optimization problems in the social and behavioral sciences are frequently associated with a variety of alternative objective criteria. Multiobjective programming is an operations research methodology that enables the quantitative analyst to investigate tradeoffs among relevant objective criteria. In this paper, we describe an interactive procedure for multiobjective asymmetric unidimensional seriation problems. This procedure uses a dynamic-programming algorithm to partially generate the efficient set of sequences for small to medium-sized problems, and a multioperation heuristic to estimate the efficient set for larger problems. The interactive multiobjective procedure is applied to an empirical data set from the psychometric literature. We conclude with a discussion of other potential areas of application in combinatorial data analysis.

Interpretation of inequality constraints involving interval coefficients and a solution to interval linear programming

The modern trend in Operations Research methodology deserves modelling of all relevant vague or uncertain information involved in a real decision problem. Generally, vagueness is modelled by a fuzzy approach and uncertainty by a stochastic approach. In some cases, a decision maker may prefer using interval numbers as coefficients of an inexact relationship. As a coefficient an interval assumes an extent of tolerance or a region that the parameter can possibly take. However, its use in the optimization problems is not much attended as it merits. This paper defines an interval linear programming problem as an extension of the classical linear programming problem to an inexact environment. On the basis of a comparative study on ordering interval numbers, inequality constraints involving interval coefficients are reduced in their satisfactory crisp equivalent forms and a satisfactory solution of the problem is defined. A numerical example is also given.

THE DEVELOPMENT OF A SPATIAL DECISION SUPPORT SYSTEM TO OPTIMISE AGRICULTURAL RESOURCE USE IN THE WESTERN CAPE

This paper describes the development of a decision support model for regional agricultural resource utilisation. The analysis was generated in a spatial context and the optimisation technique was interactive with a geographical information system (GIS). Economic and operational research methodologies were linked to the GIS in the process of determining the appropriate resource uses for the region. The optimisation technique was applied for the Western Cape Province for eight crops. The results of this research are discussed in this paper, with specific reference to its application value for the public sector and agri-business.

Determining the financial feasibility of privatized military housing initiatives with DSS-delivered quantitative models

The armed services must provide their personnel with acceptable housing at minimum cost within the vicinity of military installations. To help achieve these housing objectives, the Department of Defense (DoD) has entered into experimental joint ventures with private developers to construct attractive housing on military installation property. To support the analysis of the joint ventures, the DoD needed quantitative models that would help officials evaluate the feasibility of the housing projects. A decision support system, called the Housing Revitalization Support Office System (HRSOS), has been developed to deliver the necessary models. A key component of HRSOS is a collection of econometric, project occupancy, and simulation models that determine a project's financial outcomes. This paper describes the models, their role in the joint venture evaluation process, and the decision support system used to deliver the analyses and reports to DoD officials. The paper also presents the benefits from using the model and discusses the implications for public finance and military housing management. Scope and purpose Historically, military housing has been acquired, maintained, and managed through the Department of Defense with public funds. The process has become quite expensive, and military personnel and officials have not always been satisfied with the resulting accommodations. To rectify the situation, the Department of Defense (DoD) established an agency, called the Housing Revitalization Support Office (HRSO), to develop innovative privatization initiatives that would improve the quality of military housing and reduce government expenditures for the accommodations. A decision support system, called the Housing Revitalization Support Office System (HRSO), has been developed to help government officials evaluate, among other things, the financial feasibility of the privatization initiatives. This paper presents the system and its underlying econometric and simulation models, examines the economic and management benefits from using the system, and discusses the implications for public finance and military housing management. The HRSOS situation represents a new application for operations research and other quantitative methodologies. In addition, it further illustrates how such methodologies can be delivered effectively to non-technical managers through decision support systems.

A project evaluation system in the state economic information system of China: An operations research practice in public sectors

Operations Research (OR) methodology and its mathematical models have been widely accepted as management means in China, not only in industry and agriculture, but also in non-profit organizations, including the governmental departments and institutions. In this paper, we introduce an OR practice in the State Information Center (SIC) of China. The task is to design and develop a system, the Project Evaluation System, for SIC to manage investments in the various parts of the State Economic Information System of China (SEIS). It is a decision support system with various OR models and algorithms combined together as the core part of the system. Data Envelopment Analysis is used to evaluate the relative efficiencies of the sub-systems of the SEIS and the Analytic Hierarchy Process methodology is adopted to form the decision process. To allocate further investment to the sub-systems, an investment prediction model for non-profit organizations was formulated which is in a format of a parametric linear programming problem. This new OR model can be applied in many decision problems in economy and finance. We also discuss in this paper the experience summed up from our practice.

An integer programming model for vaccine procurement and delivery for childhood immunization: a pilot study.

The National Immunization Program of the Centers for Disease Control and Prevention has identified several challenges that must be faced in childhood immunization programs to deliver and procure vaccines to protect against the common preventable diseases. The biomedical challenge is how to combine and formulate products to take advantage of new vaccines without requiring additional injections. A programmatic challenge is to incorporate then into already crowded immunization schedules. The economic challenge is to make wise procurement choices from among a growing number of competing products. This paper reports the results of a pilot study using operations research methodologies to address the third of these challenges. The pilot is an integer programming model for procuring vaccines for a set of childhood diseases. The model is studied under various scenarios (minimum total cost, next lowest total cost, maximum total cost, minimum total cost with all manufacturers represented). The results of this pilot study demonstrate how a practical set of operations research tools can be developed to guide vaccine selection and procurement, which might stimulate the development of innovations in new vaccines to meet the challenges of disease control through immunization.

Energy planning and environmental management with the information and decision support system MESAP

Sound energy and environmental accounting must be the basis of any strategic decision making in order to keep up with the increasing complexity of energy and environmental problems. Therefore, improvements in the data management of existing decision support tools become essential. MESAP, the Modular Energy System Analysis and Planning environment, integrates modern information management with existing operations research methodologies. The design principles are flexibility concerning structure and aggregation of the analysed system, modularity of the involved methodologies and user friendliness of the software. The essential aspect of MESAP is the standardisation of the data interface achieved through the separation of the database design from the mathematical modelling algorithms. The database is designed as a case study information system and can serve any process–engineering oriented energy system model. Today, MESAP is used at the local, regional and national level to perform energy and environmental management, demand side management, integrated resource planning, life cycle and fuel chain analysis.

Personality correlates of pedophilia: Are they reliable indicators?

This article critically reviews the literature related to personality correlates of pedophilia. It is noted that the “slippage” of legal and moral constructs into operational criteria and research methodology in this field have created impediments to sound professional consensus and the accumulation of a coherent data base. When the construct “pedophile” was separated from the construct “sex offender against a minor,” there were no reliable findings regarding “pedophiles.” “Sex offenders against minors” were noted fairly consistently to have experienced early disturbances in mother relationships and were found for the most part to be non‐violent and not aroused by sexually aggressive stimuli involving children (although a smaller portion were violent and/or were aroused by such stimuli). A subgroup of these offenders displayed the passive, lonely and shy profile frequently thought to be associated with the pedophile, although such tendencies were not clinically significant and were similar to profiles fou...

SYSTEMS SCIENCE AT THE COPENHAGEN BUSINESS SCHOOL: REINTRODUCING COMPLEXITY TO PLANNING

As an acknowledged subject to be taught and researched, “Systems Science” is rather new to Denmark. Prior to 1985 it had received only limited recognition in university circles and amongst leaders of social systems. In that year however, three events took place at the Copenhagen Business School which radically changed the situation: a professorship in systems science was established, the Institute of Computer & Systems Sciences was established, and a new educational program in which systems science plays a significant role was established. Originally it was intended that systems science would represent an extension of traditional operations research methodology and techniques. The actual developments can better be described as a transcendence of analytical approaches to decision-making by a new collective rationality which attempts to integrate the qualitative and the quantitative aspects of planning, as well as its analytical and political aspects.

Linear programming and pediatric dietetics

The composition of 500 foods has been stored in a computer in order to analyse a child's diet. The methodology of operations research is applied to a very simple problem: a diet with only two foods. The geometrical representation of the 'feasible region' and of the 'objective function' is illustrated. One of the analytical methods employable with many variables (foods) is considered. This method was used in trying to find diets allowing for the preferential use of selected foods while respecting recommended dietary allowances, the tastes of the child and other constraints. The theoretical difficulty of transferring this methodology to pediatric dietetics was examined. We solved a simple case utilizing this procedure.

Freight Distribution and Transport Systems Planning

Interactive‐graphic systems and operations research methodologies are increasingly being combined to produce efficient, versatile and powerful tools that enhance the decision‐making process. The possible contribution of such tools to the planning of distribution systems for industrial firms and freight carrier service networks and operations is examined and compared.

The selection and scheduling of textile orders with due dates

This paper describes a case study of a textile firm. The problem was reduced to a 0–1 integer program which selects the best subset of orders that maximizes revenue while meeting due dates (a problem that is NP-hard). Because of the limited technical competence of the firm's employees a ‘best of three heuristic’ solution procedure was proffered. Each of the heuristics are greedy with polynomial complexity of O( n 2) where n is the number of possible orders available for selection. These algorithms were tested using real problem data and gave results of 4.5 (on average) percent error of maximum revenue. This was within the five percent limit specified by the firm. Initial successful implementation followed by disbandonment due to economic downturn displays the need for more strategic approaches to abet the implementation of operations research methodologies.

Policing vice in the West End

The aim of this article is to discuss operational difficulties of West End policing, in particular those pertaining to female prostitution, whilst also drawing up lessons for operational research and systems methodologies, in this “real-world” context, through practical application of such approaches. A systemic analysis is briefly presented, and the findings of this in terms of (a) methodological reflections, and (b) ways forward in the situation, are discussed.

Immunization Drop-Outs and Maternal Behavior: Evaluation of Reasons Given and Strategies for Maintaining Gains Made in the National Vaccination Campaign in Liberia

Through annual National Vaccination Weeks, Liberia, one of thirteen African countries participating in the CCCD program, has achieved good rates of initial vaccination coverage against childhood diseases. However, rates of completion have been disappointing. Described is a community-based operations research methodology for a.) identifying reasons for non-completion of the vaccination series according to groups of mothers, front-line health workers and country level administrators, b.) for making recommendations for alternatives in the delivery system, and c.) for critiquing the focus group methodology as a tool for increasing commitment to program goals.

ON A COMPUTER‐BASED THEORY OF STRATEGIES

Some of the objectives and working tools of a new area of study, tentatively called Theory of Strategies, are described. It is based on the methodology of artificial intelligence, decision theory, operations research and digital gaming. The latter refers to computing activity that incorporates model building, simulation and learning programs in conflict situations. We also discuss three long‐term projects which aim at automatically analyzing and synthesizing strategies.

Area Editor Statement—OR Practice

1. Reports of actual applications that are significant e.g., that a. Are nonroutine, novel, or unusual, b. Produced unusually dramatic results for users, c. Received great attention (e.g., in the popular press), d. Failed in an instructive manner, or e. Caused major changes in the orientation and approach of a major application effort. 2. Serious surveys and studies of the use, nonuse, or misuse of operations research in particular industries or of the use, nonuse, or misuse of particular operations research methods as well as scholarly discussions of the gaps and problems in operations research theory that significantly limit its potential for use, and 3. Practitioner-oriented tutorials, surveys, and evaluations of new or rapidly evolving technical areas and of computer programs and systems for making operations research methodology available,