Operations research can be applied to any business to maximize its profit potential.
Perfecting the decision-making process to yield higher profits for minimum investment is the primary goal of operations research. This is accomplished with the application of techniques such as mathematical modeling. During operations research, professionals will compile large amounts of data, consider all of the available options and use the latest decision-making tools to come to a viable solution most likely to yield the desired result. There are several subtopics within the field of operations research.
Decision Analysis
choose the best decision for a business or new venture out of the many possibilities that exist is what the process of decision analysis aims to do. Decision analysis presents a logical and systematic way to view the pathways different decisions can lead to, enabling the decision maker to look at all the possible outcomes of all possible decisions. Examples of decision analysis methods include risk analysis, risk assessment and creating models for decision-making under conditions of uncertainty.
Financial Engineering
Financial systems are complex entities that require mathematical and statistical analysis tools in order to navigate smoothly. Financial engineering is the area of operations resources that studies financial industries and creates new financial instruments and processes. Financial engineering's goal is to enhance the wealth of those investing in the stock market and financial industries, such as shareholders. A successful financial engineering process or innovation will open up new avenues in the market, allowing investors to accomplish something they could not do previously.
Supply Chain Management
Supply chain management is the aspect of operations research that deals with the path a product follows from the manufacturer to the end user. Supply chain management deals with multiple organizations, whose efforts culminate into a successful, or unsuccessful, manufacturing endeavor. Before the study of the supply chain, each organization would only judge its success or failure from its own perspective, not taking into account the many outside organizations that influence production. Successful supply chain management culminates in maximum customer value and a sustainable, competitive advantage for the company.
Tags: operations research, chain management, deals with, decision analysis, financial industries, supply chain, Supply chain