Introduction
Derived from the rapid growth of information systems coupled with the multiple adaptations that organizations suffer through the use of new technologies for decision-making, the need to restructure again for decision-making, supported by a system that allows to visualize effectively the organization's productivity process. To avoid making room for wrong decisions that directly affect the interests and objectives of the organization and avoid deficits.
The high competitiveness that exists in the markets makes decision-making faster, postponement gives an advantage to the opposite, this is when there is not the adequate information and knowledge teams to face the legal framework of globalization.
The palpable difficulty of making decisions has made man look for tools or methods that allow it in the shortest possible time, thus minimizing risk factors, based on the use of technology that prevails today. Such tools that give consistency for the application of decision making are found in the mathematical models of "Operations Research". These models relate the typical variables submerged in the variants of a company, such as:
- The organizationSalesShoppingExpensesProductionRaw materialCostsUtilityInputsAmong others…
This paper addresses part of the application of these tools, as well as their application and the benefit they provide for decision-making, abundant about their history.
1.- History of operations research
Operations research is a basic tool for decision-making in companies due to its quantitative approach, supported by mathematics. The first operations research was put into practice at the beginning of the Second World War, to develop strategies and tactics of war. For all this, the American and British high ranking military commanders called on all scientists to design this method, first developing the "radar". In 1950 it was introduced to industry, business and government, an outstanding example is the "Simplex" method of solving linear programming problems, developed in 1947 by George Dantzing. The biggest boom to give it universal application in almost every company in the world was with the beginning of computers in 1980.
The application of operations research methods, helps professionals to make the most correct decisions in the workplace. Companies must have these methods to solve resource optimization problems in the entity. Observation is a fundamental basis for identifying problems, developing it by formulating the problem statement and thus determining the variables culminating in the application of these operations research methods.
2.- Nature of the operations investigation
As its name indicates it means "to do research on operations" its fundamental application is aimed at the multiple operations or activities carried out by a company or economic entity regardless of its lucrative or non-profit nature, decision-making is basic for all of these, contrary sensu, implies bankruptcy. For all this, certain requirements must be met in order to follow the scientific method of investigation. That is, starting with the observation of the problem, data collection, formulation of the method to apply, the hypothesis to determine if the application of the applied IO is correct or modify as many times as necessary to reach the best reasonable and real optimal conclusion.
In relation to the above, trained people are needed, in the field of mathematics, statistics and probability theory, as well as in economics, business administration, computer science, engineering, physical sciences, behavioral sciences and, of course, in the special techniques of operations investigation.
The mixture of all these skills helps to develop the best decision-making, exercising them in operations research methods.
3.- What is operations research?
There are many definitions, some of which are misleading, but the author of this material mentions two, which are the most accurate.
For Churchman, Ackoff and Arnoff:
Operations research is the application, by interdisciplinary groups, of the scientific method to problems related to the control of organizations or systems (man - machine). In order to produce solutions that best serve the objectives of the organization.
According to the previous definition, it highlights that in every economic entity where man, inputs and the machine are related, the optimization of resources must be superimposed, for the benefit of the organization.
For the IO society of Great Britain it is as follows.
Operations research is modern science's attack on the complex problems that arise in the management and administration of great systems of men, machines, materials, and money, in industry, in business, in government, and in society. defending. Their differential attitude consists in developing a scientific model of such a system that incorporates evaluations of factors such as chance and risk and through which the results of alternative decisions, strategies or controls are predicted and compared. Its purpose is to help management scientifically determine its policies and actions.
I understand that IO is the attack of modern science on economic entities, being understood by economic entity any business where there is investment capital and this in turn, must generate a surplus, for the purposes that were created, that is, if We are talking about a marketer, its objective is to produce and sell generating profits, if I speak of an army its objective is that the greater the investment of money, the better war technologies. Both have common purposes, which is a cost benefit, the first in money and the other in kind.
In addition to this, there are four essential elements: money, material, man and machine. That together they enter into the performance of the direction and the administration, it is there, where the complexity of decision-making is born, about the application of resources. Recommended that for greater optimization of resources they should be supported by scientific models, through mathematical models that help make the best decisions for the benefit of the organization.
The following video summarizes the concept of operations research and shows how it can be used to improve decision-making in different real-life problems.
4.- Operations investigation approach
It has a novelistic approach as a product of its creators, coupled with the survival pressure of war or the synergy generated by combining different disciplines. A description of the approach is as follows:
- Within an economic entity, many variables interact Identify the variables that regulate the behavior or the current state of the problem Build a quantitative model of the assumed system (mathematical model) The solution to the quantitative model is obtained by applying one or more than the techniques developed by the IO. The result is taken according to the best possible reality for decision-making. The solution is implanted in the real system. That is, carry it out.
5.- Operations investigation methodology
Definition of the problem and data collection
In order to be more accurate in making decisions, you must first identify what is the problem that affects the organization? How much loss is this problem causing? Landing all this in a theoretical framework, delimiting scope and objectives, questioning which would be the best solution, and which method should be applied. Once the problem is defined, start by collecting data that interfere with the problem, identifying the variables, creating hypotheses for the solution of the problem, concluding with the application of the mathematical model to apply IO.
Obviously, the definition of the problem in this aspect is quantitative, since it represents money, and its definition would be based on the mathematical variables that these produce. Starting from the variables, I would apply mathematical reasoning using IO techniques.
Formulation of a mathematical model
Once the problem is defined, a mathematical model must be formulated according to the localized variables of each problem, designing equations for this that allow us to see the general panorama of the problem. A model must always be less complex than the real problem, it is an abstract approximation of reality with considerations and simplifications that make the problem more manageable and allow efficient evaluation of alternative solutions. There is software that already has the equations designed according to the problems to be posed. You only need to know how to use them and especially to develop them manually to verify that these packages are fully reliable.
Obtaining a solution from the model
By defining the problem, the dependent variables (which depend on the independent variables) are identified and in order to solve it, a model must be solved that consists of finding the values of the variables, improving the efficiency and effectiveness of the system within the framework of references set by the objectives and constraints of the problem.
Solution procedures can be classified into three types:
- Analytical, which use mathematical deduction processes Numerical, which are inductive and work based on trial and error operations Simulation, which uses methods that imitate or emulate the real system, based on a model.
These models are said to be iterative, since they seek the solution based on the repetition of the same analytical rule until reaching it, if there is one, or at least an approximation.
Model test
It is the development of the mathematical model in Operations Research already defined, for the solution of specific problems, for computers, through the use of software packages updated through versions. This software is not 100% reliable, they maintain a minimum margin of error, which cannot be detected. But as new computational technologies are developed, these errors are minimized. This process of testing and improving a model to increase its validity is known as "model validation."
I believe that the authors of these computer software maintain errors due to the accumulation of variables they contain, inputs and outputs. And to improve these errors a person outside of them must monitor the data included in the software.
Solution Control Establishments
The already designed software depends on the variables, parameters, relationships etc., as long as they do not change significantly. When data is inserted into the computer base, it must be ensured that it respects the system parameters. Otherwise it is important to develop a new system that encompasses all these changes.
Usually this is known as sensitivity analysis, which consists of determining the ranges of variation of the parameters within which the solution of the problem does not change.
Implementation of the solution
The team that designs the operating system, for the database on computers, must report on new advances in the application of an entity's operations research method. Since these must be designed according to the needs of the organization. When the problem brought by the previous procedures is already detected, they must be modified and used in new systems. Properly informing administrators, managers of the new findings for their sale and staff training. As you can see, these companies that create their own software for sale must be specialists in the field and the partners who invest in the application of these new technologies must have the full support, saving time, money and effort.As is known, these problems carried out manually would waste too much time and it would take time to make the right decisions. That is why with these new systems it gives greater productivity to companies by discarding unnecessary expenses.
The implementation stage includes several steps. First, the operations research team must give a careful explanation to operational management about the new system to be adopted and its relationship to operational reality. These two groups then share the responsibility of developing the procedures required to put the system into operation.
6.- Impact of operations investigation
All organizations around the world have seen an economic rebound reflected in their profits and this is due to the application of operations research in their businesses, given its efficiency in the management of computer systems. There are now more than 30 countries that are members of the International Federation of Operational Research Sicieties (IFORS), with each country having an operations research society.
Without a doubt this leaves me perplexed about the application of these new systems in organizations around the world. Implementing these systems in companies would be very successful in making decisions.
7.- Risk when applying operations research
Mention that despite the introduction of data into the system, to determine the best possible solution to a problem. They are usually manipulable according to our needs if they are not provided with the correct information. That is to say, for the system to work properly, the variables must be identified (mathematical models) because otherwise we would have to adjust it according to our needs, affecting decision-making.
8.- Limitations of the investigation of operations
- It is often necessary to make simplifications of the original problem in order to manipulate it and obtain a solution. Most models only consider a single objective and frequently in organizations there are multiple objectives. There is a tendency not to consider all the restrictions in a problem practical, because the teaching and training methods give the application of this science centrally are based on small problems for practical reasons, for which a very simplistic and naive opinion is developed in the students about the application of these techniques to real problems.Cost-benefit analysis of the implementation of solutions defined through IoT is hardly ever performed,sometimes the potential benefits are outweighed by the costs incurred by the development and implementation of a model.
9.- Specific models of operations investigation
- Production Planning Personnel Assignment Transport Inventories Diets Market Investment Strategies Project Management Etc.
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Conclusion (personal opinion)
The history of operations research mentions about the emergence until the application today, its boom was greater with the use of computers. Operations research arose from the need to implement better warfare tactics and strategies during the Second World War for the American and English Army, giving its first fruit to the "radar" in 1950. Later the "Simplex" method to solve problems of linear programming, developed in 1947 by George Dantzing. Its greatest universal application boom in almost all companies in the world was with the beginning of computers in 1980. Operations research consists of the use of mathematical models, statistics and algorithms in order to carry out a decision-making process,It allows the analysis of decision making taking into account the scarcity of resources, to determine how a defined objective can be optimized such as maximizing benefits or minimizing costs.
Operations research is the application of scientific methodology through mathematical models, first to represent the problem and then to solve them.
The complexity of the problems that are represented in organizations no longer fit into a single discipline of knowledge, it has become multidisciplinary, therefore, for its analysis and solution, groups composed of specialists from different areas of knowledge are required who manage to communicate with a common language.
As mentioned, before solving a problem, it must be identified and this is achieved through observation, collecting the data that interferes with the problem.
Its basic method consists of the following steps.
- Observation Definition of real problems Development of alternative solutions Selection of the optimal solution through experimentation Verification of the optimal solution.
In this way, it is concluded that it is vitally important to enrich oneself with these new computer systems that use these operations research software for the best and timely decision-making in the productivity process of the organization.
