Real Life Application of Math in Operation Research

The field of operations research (OR) employs statistical analysis, mathematical models, and optimisation strategies to address challenging decision-making issues in a range of sectors. It first appeared in World War II, when resource allocation and strategic planning were necessary for military operations. It has now spread into a wide range of industries, including manufacturing, banking, logistics, healthcare, and more. OR aids businesses in streamlining operations, cutting expenses, and increasing efficiency by offering data-driven insights and solutions.

What is Math?

Numbers, quantities, forms, and patterns are all explored in the study of mathematics. It includes a number of disciplines, including calculus, algebra, geometry, and statistics, and it provides a fundamental tool for comprehending and resolving challenging issues in both theoretical and real-world settings. The development of logical reasoning, critical thinking, and analytical abilities all depend on mathematics.

What is Operation Research?

Operations research (OR) is a field of study that uses mathematical modeling and analytical techniques to solve complex problems and make better decisions in various areas such as business, engineering, healthcare, and logistics.

In simpler terms, it’s like having a set of tools and methods to figure out the best way to do things efficiently and effectively. In a business context, OR might help a company decide how to allocate resources like manpower, equipment, and finances to maximize profits or minimize costs. It’s essentially about using math and data to make smarter decisions and improve outcomes.

Application of Math in Operation Research

To enhance decision-making and resource management, operations research makes use of a broad range of mathematical ideas, including probability, statistics, game theory, and linear and nonlinear optimisation. Key domains in which OR is utilised are as follows:

• Supply chain management: Cutting down on transportation expenses, improving warehouse operations, and maximising inventory levels.
• Scheduling: The effective use of time and resources in project management, labour distribution, or production scheduling.
• Queueing Theory: Examining and enhancing consumer flow in service-oriented companies like contact centers, banks, and hospitals.
• Transportation and Logistics: Creating effective networks and routes for the delivery of goods and services.
• Healthcare management: Optimising staff scheduling, enhancing resource allocation, and streamlining patient flow.

Real-life Application of Math in Operation Research

Supply Chain Management at Amazon

Utilising OR methods, Amazon is able to balance inventory levels throughout its worldwide supply chain, optimise delivery routes, and manage its extensive network of facilities. Amazon may increase delivery speeds and reduce shipping costs by using mathematical models.

Example:

Amazon employs OR to strategically place goods throughout its distribution centres in order to optimise warehouse operations. Amazon can ensure that popular products are available at warehouses nearest to customers, lowering shipping costs and delivery times, by utilising algorithms that analyse demand trends.

Airline Scheduling and Pricing

Airlines utilise OR to optimise ticket prices, crew allocations, and flight schedules. As a result, they are able to increase sales while keeping client satisfaction levels high.

Example:

OR is a tool used by Delta Air Lines to optimise crew assignments and flight schedules. Through careful coordination of flight frequencies and routes, Delta is able to reduce delays and maximise aircraft utilisation. Furthermore, dynamic ticket prices are determined using OR in response to competition, demand, and other variables.

Healthcare Resource Allocation

OR is used by hospitals to better schedule staff, assign operating rooms, and control patient flow. Healthcare providers can reduce expenses and enhance patient care by optimising these procedures.

Example:

OR is used by the Mayo Clinic to optimise operating room scheduling and manage patient flow. The clinic can efficiently distribute medical staff and resources, leading to reduced wait times and better patient outcomes, by analysing historical data and patient demands.

Telecommunications Network Design

OR is used by telecom businesses to optimise bandwidth allocation, create effective network architectures, and transmit data more efficiently. Customers will receive dependable and prompt service as a result.

Example:

AT&T designs and optimises their telecom network using OR. AT&T is able to plan network expansions, optimise bandwidth distribution, and guarantee dependable service throughout its network by modelling data traffic patterns and customer demand.

Manufacturing Process Optimization

Utilising OR approaches, businesses such as Toyota enhance quality control, reduce waste, and optimise production schedules. They are able to meet client demand and remain competitive as a result.

Example:

Toyota uses OR approaches to streamline manufacturing processes in its production systems, including the Toyota Production System (TPS). Toyota can increase productivity and uphold high standards by cutting waste, balancing production lines, and minimising inventories.

Revenue Management in Hospitality and Tourism

Airlines, hotels, and resorts all employ operations research methodologies to maximise revenue and optimise pricing tactics. These companies are able to dynamically modify accommodation rates or ticket prices by examining variables like demand, seasonality, and competition. To maintain high occupancy rates and revenue, a hotel could, for instance, raise room rates during peak tourist seasons and decrease them during off-peak times.

Example:

Marriott International employs OR to dynamically adjust room rates in response to demand, seasonality, and exclusive events. Marriott is able to optimise income and sustain high occupancy rates all year round by implementing real-time price adjustments.

Urban Planning and Traffic Management

Operations research is used by cities to enhance traffic control and urban planning. OR methods can be used to regulate traffic flow in crowded regions, optimise traffic light timings, and construct effective road networks. Cities may reduce traffic, increase safety, and improve overall transportation efficiency by analysing traffic patterns and projecting future trends.

Example:

Singapore employs OR to effectively control traffic flow. Singapore has successfully decreased traffic and increased overall transportation efficiency by putting in place smart traffic lights and road pricing schemes based on real-time data and traffic patterns.

Conclusion

Operations research is a multidisciplinary field with many applications in different industries. It helps modern firms run more efficiently by generating creative solutions. Operations and decision-making will continue to be significantly shaped by OR as data becomes more readily available and technology develops.

FAQs on Real-life Application of Math in Operation Research

What is Operations Research ?

The field of operations research (OR) employs analytical and quantitative techniques to address challenging decision-making issues in a range of business contexts.

What are some common OR techniques ?

Linear programming, integer programming, simulation, queueing theory, and game theory are examples of common OR approaches.

How does OR benefit businesses ?

OR assists companies in streamlining operations, cutting expenses, increasing productivity, and making data-driven choices that lead to improved results.

Can OR be applied to service industries ?

Yes, OR is frequently used to improve resource allocation and customer experience in service industries like retail, healthcare, banking, and telecommunications.

What is linear programming in OR ?

Resource allocation and production planning frequently use linear programming, an OR approach that entails optimising a linear objective function according to linear constraints.

How does OR help in transportation ?

In order to ensure prompt and economical delivery, OR helps manage fleet schedules, optimise transportation routes, and save logistics expenses.

Is OR only applicable in large organizations ?

No, OR may be used to increase productivity, streamline processes, and make better decisions in businesses of all sizes.