History of Operations Research
38 Questions
3 Views

Choose a study mode

Play Quiz
Study Flashcards
Spaced Repetition
Chat to lesson

Podcast

Play an AI-generated podcast conversation about this lesson

Questions and Answers

What is the last step in the 7 steps of problem solving?

  • Choose an alternative
  • Determine the set of alternative solutions
  • Evaluate the results (correct)
  • Evaluate the alternatives

    • Who is associated with the development of Linear Programming?

  • George Dantzig (correct)
  • Ralph Gomory
  • H.Karmarkar
  • Jon Von Neuman

    • What is the primary reason for using a Quantitative Analysis approach to decision making?

  • The problem is not repetitive
  • The problem is well understood
  • The problem is complex (correct)
  • The problem is not very important

    • Who is associated with the development of Integer Programming?

    <p>Ralph Gomory</p> Signup and view all the answers

    What is the primary focus of Game Theory?

    <p>Decision making under uncertainty</p> Signup and view all the answers

    What is the name of the organization that was formed in 2006?

    <p>INFORMS</p> Signup and view all the answers

    What is the minimum number of units of Product 1 that Iron Works, Inc. must produce?

    <p>60 units</p> Signup and view all the answers

    What is the optimal solution to the Iron Works, Inc. problem?

    <p>x1 = 60 and x2 = 626 2/3</p> Signup and view all the answers

    What are the key inputs required to build a mathematical model for project scheduling?

    <p>Normal and expedited activity completion times, funds available for expediting, and precedence relationships of the activities</p> Signup and view all the answers

    What is the objective function of the mathematical model in project scheduling?

    <p>Minimize project completion time</p> Signup and view all the answers

    What is the mathematical model that gives the starting bid (B) for a car in terms of the car's original price (P), current age (A) and mileage (M)?

    <p>B = .7(P - 800(A) - .025(M))</p> Signup and view all the answers

    What is the purpose of solving the mathematical model in project scheduling?

    <p>To identify the values of the decision variables that provide the best output for the model</p> Signup and view all the answers

    What type of model is used in project scheduling?

    <p>Stochastic model</p> Signup and view all the answers

    Why is the optimal solution x1 = 60 and x2 = 626 2/3 not a true optimal solution for the 'real-life' problem?

    <p>Because it assumes production of fractions of units</p> Signup and view all the answers

    What is the age deduction per year in the Austin Auto Auction model?

    <p>$800</p> Signup and view all the answers

    What is the maximum number of units of Product 2 that Iron Works, Inc. can produce?

    <p>720 units</p> Signup and view all the answers

    What is the assumption of the Austin Auto Auction model regarding the factors influencing the value of a used car?

    <p>The model assumes that the only factors influencing the value of a used car are the original price, age, and mileage.</p> Signup and view all the answers

    What are the decision variables in the mathematical model for project scheduling?

    <p>Which activities to expedite and by how much, and when to start each activity</p> Signup and view all the answers

    What is the outcome of solving the mathematical model in project scheduling?

    <p>Best course of action</p> Signup and view all the answers

    What is the monthly rent paid by Ponderosa Development Corporation for its building?

    <p>$2,000</p> Signup and view all the answers

    What is the total monthly cost of Ponderosa Development Corporation?

    <p>$6,000</p> Signup and view all the answers

    What is an example of a tool used to solve the mathematical model in project scheduling?

    <p>Read nurse profiles and demand requirements</p> Signup and view all the answers

    What is the total monthly salary cost of the seven permanent employees of Ponderosa Development Corporation?

    <p>Not given</p> Signup and view all the answers

    What is the mileage deduction per mile in the Austin Auto Auction model?

    <p>$0.025</p> Signup and view all the answers

    What approach can be used to solve the mathematical model in project scheduling?

    <p>Trial-and-error approach</p> Signup and view all the answers

    What is the monthly cost of supplies, utilities, and leased equipment for Ponderosa Development Corporation?

    <p>$3,000</p> Signup and view all the answers

    What is the linear manner of devaluation assumed in the Austin Auto Auction model?

    <p>Age and mileage decrease the value of a car in a linear manner.</p> Signup and view all the answers

    What is the unit profit for product 1 in the Iron Works, Inc. model?

    <p>p1</p> Signup and view all the answers

    What is the minimum number of units of product 1 required in the Iron Works, Inc. contract?

    <p>m</p> Signup and view all the answers

    How many pounds of steel are required to make a unit of product 1 in the Iron Works, Inc. model?

    <p>a1</p> Signup and view all the answers

    What was the primary goal of Merrill Lynch's Management Science Group?

    <p>To evaluate the total revenue at risk</p> Signup and view all the answers

    What was the outcome of introducing two new products at Merrill Lynch?

    <p>A revenue gain of $80 million</p> Signup and view all the answers

    What was the primary challenge faced by NBC's sales staff?

    <p>Manually developing sales plans for advertisers</p> Signup and view all the answers

    What was the primary objective of Ford Motor's prototype vehicle testing?

    <p>To reduce costs on prototype development</p> Signup and view all the answers

    What was the benefit of Merrill Lynch's Management Science Group's simulation of client-choice behavior?

    <p>Evaluation of total revenue at risk and assessment of pricing schedules</p> Signup and view all the answers

    What was the outcome of NBC's use of optimization models?

    <p>Improved sales-force productivity and revenue management</p> Signup and view all the answers

    What was the common goal of the three companies mentioned?

    <p>To increase revenue through optimization and simulation</p> Signup and view all the answers

    What was the outcome of NBC's optimization of ad sales?

    <p>A revenue gain of $200 million</p> Signup and view all the answers

    Study Notes

    History of Operations Research

    • Operations Research originated in the 1940s with contributions from L.H. Kuhn, A.Tucker, Jon Von Neumann, George Dantzig, and Oscar Morgenstern
    • Key developments: Queuing Theory, Non-Linear Programming, Linear Programming, Game Theory, Simulation, Dynamic Programming, and Integer Programming

    Timeline of Operations Research

    • 1970: Microcomputer, H.Karmarkar's work on Linear Programming, and the introduction of Spreadsheet Packages
    • 1980: Personal computer, OR/MS Softwares, and the establishment of INFORMS
    • 1990: Advancements in OR/MS Softwares and simulations
    • 2006: You are here

    Problem Solving and Decision Making

    • 7 Steps of Problem Solving: • Identify and define the problem • Determine the set of alternative solutions • Determine the criteria for evaluating the alternatives • Evaluate the alternatives • Choose an alternative • Implement the chosen alternative • Evaluate the results
    • The first 5 steps are the process of decision making

    Quantitative Analysis and Decision Making

    • Reasons for using a Quantitative Analysis Approach: • The problem is complex • The problem is very important • The problem is new • The problem is repetitive

    Project Scheduling

    • Example: Project Scheduling
    • Decision variables: which activities to expedite and by how much, and when to start each activity
    • Objective function: minimize project completion time
    • Constraints: do not violate any activity precedence relationships and do not expedite in excess of the funds available

    Model Solution

    • Involves identifying the values of the decision variables that provide the "best" output for the model
    • One approach is trial-and-error

    Examples and Case Studies

    • Austin Auto Auction: Develop a mathematical model to determine the starting bid for a car based on its original price, age, and mileage
    • Iron Works, Inc.: Determine the optimal production levels for two products made from steel, considering the original price, age, and mileage
    • Ponderosa Development Corporation: Determine the optimal production levels for two products, considering the monthly salaries of employees, leased equipment, and supplies
    • Merrill Lynch: Simulate client-choice behavior to evaluate the total revenue at risk and assess the impact of various pricing schedules
    • NBC's Optimization of Ad Sales: Use optimization models to reduce labor time and improve pricing of ad spots, increasing revenue by over $200 million
    • Ford Motor Prototype Vehicle Testing: Reduce costs on developing prototypes for new cars and modified products

    Studying That Suits You

    Use AI to generate personalized quizzes and flashcards to suit your learning preferences.

    Quiz Team

    Related Documents

    3rd Lecturer.ppt

    Description

    This quiz covers the key figures and developments in the history of operations research, including notable mathematicians, algorithms, and methodologies.

    More Like This

    Use Quizgecko on...
    Browser
    Open
    Browser
    Browser