TECH TRENDS
Operational Research : a hidden gem in business transformation
Operational Research , known as ‘ the art and science of decision-making ’, is a hidden gem that is a transformative tool for businesses . It combines advanced mathematics , data analytics and human insights to provide a comprehensive toolkit for businesses . This discipline goes beyond simple data analytics , turning data insights into real-world solutions for complex problems . Seb Hargreaves , Executive Director of The OR Society , discusses how Operational Research can help businesses .
Operational Research ( OR ) specialists work closely with businesses to understand their unique challenges and goals . They create mathematical models , algorithms and customised tools to address specific problems . value from their data , model complex systems and make better decisions with reduced risk .
Tackling complex business problems in retail and manufacturing
For example , an OR expert might help a logistics company to optimise its delivery routes by considering factors such as traffic , fuel expenses and delivery deadlines . Similarly , a retailer might use OR to analyse sales data and determine optimal stock levels , balancing customer demand with inventory costs through predictive analysis .
Members of The OR Society have also worked with e-commerce giant , Amazon , to achieve more efficient scheduling of delivery routes and the most recent availability of vast amounts of data has further enhanced OR ’ s capability to aid complex decision-making .
Looking back at the roots
One notable example is glass company , Pilkington UK , part of the NSG Group , which used OR techniques to reduce glass waste and optimise its manufacturing processes .
By analysing its order data using OR techniques , Pilkington UK was able to better plan manufacturing processes to align with specific customer orders . This led to varied sizes of glass being cut to match orders – optimisation that reduced waste , saved costs and improved customer satisfaction .
Tesco , Britain ’ s largest grocer , also turned to OR solutions to manage its expiring stock more
OR evolved in World War II , when scientists and engineers developed innovative methods to enhance military operations . By analysing military data , mapping processes , simulating scenarios and devising optimal routes and logistics strategies for merchant ships , OR played a crucial role in reducing military losses and ensuring mission success .
Today , executives across organisations large and small , private and public , are using OR to unlock
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