Operations Research/Management Science Key Terms

Learn a few OR/MS terms to begin navigating the field

Operations Research/Management Science is a rapidly growing field, and its techniques have been applied in many organizations, both public and private. In a nutshell, OR/MS seeks to streamline operations, be they financial, transportation, inventory or communications, with the goal of decreasing waste and increasing effectiveness. OR/MS is concerned with how organizations solve problems and implement solutions. To analyze this, the management scientists employ a wide range of mathematical tools, including logic, network analysis and game theory. A wealth of key terms is used to describe these tools, but this guide will outline the science's broader areas of focus.

 

Simulation

Simulation is a method of modeling an operation in a way that allows management to identify areas for improvement and test possible solutions. Simulations are almost always created with software that allows users to import, test and analyze data.
Try: Flexism is a simulation software developer.

Optimization and decision analysis

Optimization allows management to choose solutions in a scientific manner. When presented with a problem, there might be an infinite number of remedies. Optimization provides a way of comparing the different routes based on targeted benchmarks.
Try: Microsoft has a series of guides to optimizing IT infrastructure. Dr. Hossein Arsham of the University of Baltimore publishes Tools for Decision Analysis and provides a resource for students and practitioners of the field.

Data analysis and statistical methods

This realm of OR/MS includes data mining and forecasting; it is the way in which decision makers pick up on patterns that can be exploited to increase efficiency or revenue.
Try: Topics in Statistical Data Analysis, also published by Dr. Hossein Arsham, is a treasure trove of data analysis resources.

Soft OR

Soft organization research refers to non-mathematical tools used in OR/MS, including soft systems mapping, the strategic choice approach and cognitive methodology.
Try: OR/MS Today has an article on soft OR, with case studies of how its methodologies have been used to effectively solve problems.

Strategic planning

Strategic planning helps an organization set priorities. To set goals, you need to figure out where you want to go and develop a plan of action. To evaluate your success, you must set benchmarks. Unlike a business plan, strategic planning is concerned with the health of the organization overall.
Try: The Free Management Library has an in-depth guide to strategic planning for non-profit organizations.

Linear modeling or programming

Linear modeling is a tool used to try and optimize an economic outcome. It can help OR/MS practitioners find the best solution, while taking into account constraints.
Try: The University of Regina explains the concept of linear programming and how it is used in operations research.

Copyright © 2011 Business.com, Inc. All Rights Reserved.

---