Nature of the Work
“Operations research” and “management science” are terms that are used interchangeably to describe the discipline of using advanced analytical techniques to make better decisions and to solve problems. The procedures of operations research were first formalized by the military. They have been used in wartime to effectively deploy radar, search for enemy submarines, and get supplies to where they are most needed. In peacetime and in private enterprises, operations research is used in planning business ventures and analyzing options by using statistical analysis, data and computer modeling, linear programming, and other mathematical techniques.
Large organizations are very complex. They must effectively manage money, materials, equipment, and people. Operations research analysts find better ways to coordinate these elements by applying analytical methods from mathematics, science, and engineering. Analysts often find many possible solutions for meeting the goals of a project. These potential solutions are presented to managers, who choose the course of action that they think best.
Operations research analysts are often involved in top-level strategizing, planning, and forecasting. They help to allocate resources, measure performance, schedule, design production facilities and systems, manage the supply chain, set prices, coordinate transportation and distribution, or analyze large databases.
The duties of the operations research analyst vary according to the structure and management of the organization they are assisting. Some firms centralize operations research in one department; others use operations research in each division. Operations research analysts also may work closely with senior managers to identify and solve a variety of problems. Analysts often have one area of specialization, such as working in the transportation or the financial services industry.
Operations research analysts start a project by listening to managers describe a problem. Then, analysts ask questions and formally define the problem. For example, an operations research analyst for an auto manufacturer may be asked to determine the best inventory level for each of the parts needed on a production line and to ascertain the optimal number of windshields to be kept in stock. Too many windshields would be wasteful and expensive, whereas too few could halt production.
Analysts would study the problem, breaking it into its components. Then they would gather information from a variety of sources. To determine the optimal inventory, operations research analysts might talk with engineers about production levels, discuss purchasing arrangements with buyers, and examine storage-cost data provided by the accounting department.
Relevant information in hand, the analysts determine the most appropriate analytical technique. Techniques used may include a Monte Carlo simulation, linear and nonlinear programming, dynamic programming, queuing and other stochastic-process models, Markov decision processes, econometric methods, data envelopment analysis, neural networks, expert systems, decision analysis, and the analytic hierarchy process. Nearly all of these techniques involve the construction of a mathematical model that attempts to describe the system being studied. So, the problem of the windshields, for example, would be described as a set of equations that try to model real-world conditions.
The use of models enables the analyst to explicitly describe the different components and clarify the relationships among them. The descriptions can be altered to examine what may happen to the system under different circumstances. In most cases, a computer program is developed to numerically evaluate the model.
Usually the model chosen is modified and run repeatedly to obtain different solutions. A model for airline flight scheduling, for example, might stipulate such things as connecting cities, the amount of fuel required to fly the routes, projected levels of passenger demand, varying ticket and fuel prices, pilot scheduling, and maintenance costs. By assessing different possible schedules, the analyst is able to determine the best flight schedule consistent with particular assumptions.
Based on the results of the analysis, the operations research analyst presents recommendations to managers. The analyst may need to modify and rerun the computer program to consider different assumptions before presenting the final recommendation. Once managers reach a decision, the analyst usually works with others in the organization to ensure the plan's successful implementation.
Work environment. Operations research analysts generally work regular hours in an office environment. However, because they work on projects that are of immediate interest to top managers, operations research analysts often are under pressure to meet deadlines and may work more than 40 hours a week.
