Written by: Ben Jabbawy, Cornell University
Science and Engineering REALLY ARE COOL. Over the next few months, I will introduce different career paths within these fields. Since I am majoring in Operations Research (OR) Engineering, I figure its a great place to start.
Q: So what is OR anyways?
A: Today, business managers make many decisions involving time, money, labor, and materials. Because of the size and span of current manufacturing and delivery systems, there is a major need for very sophisticated methods of increasing efficiency in the combination of those crucial factors that make up many businesses. OR engineers use a combination of mathematical techniques and specialized computing tools to develop and apply the appropriate techniques.
Q: What real world applications does OR have?
A: There are infinite applications of OR in the real world. Take, for example, an automobile manufacturer. If they can figure out what process is slowing down their manufacturing line, they could save millions of dollars by adjusting that method of production. If airlines could better predict shifts in passenger demand during different seasons, they could fill more seats.
Q: What kind of classes do you take as an OR major?
A: Despite variations in different engineering programs, most OR majors require knowledge of calculus, computer programming, probability and statistics. OR also requires the understanding of the business side of manufacturing through classes such as financial and managerial accounting.
Q: What might be a typical career path for an OR major?
A: OR majors go off to work in companies like UPS managing delivery methods, managing projects at Microsoft, working as consultants and financial analysts or financial planners. The OR skill sets are also very valuable for entrepreneurs.
Let me give you an example that a professor showed my class on the first day. I present you with the following problem, also known as the Transportation problem:
You own a grand piano company with warehouses A, B, C all on the west coast. Customers want to purchase some of your pianos at points X, Y all on the east coast. Because you have been in the business for quite some time, you know the cost per piano (in thousands of dollars) associated with transporting them from…
A >> X = $4 / piano A >> Y = $7 / piano
B >> X = $6 / piano B >> Y = $8 / piano
C >> X = $8 / piano C >> Y = $9 / piano
You also know how many pianos you have stored at each warehouse:
A = 2 pianos
B = 3 pianos
C = 5 pianos
And how many pianos are demanded at each site:
X = 4 pianos
Y = 6 pianos
The problem then becomes fully satisfying the demand sites on the east coast while maximizing your profit (i.e. minimizing total transportation costs). At first glance, you’re probably thinking, ok that’s a joke. Just try out the different combinations in order to satisfy the demand at each site. But consider the same problem at a more realistic scale. Say you had to deliver 1000 pianos to 50 sites all over the world.
In this case, the
plug and chug technique could take forever to figure out. OR engineers use a technique called linear programming, which involves manipulations of simple, linear equations to obtain simplified problems which are then easier to solve and still follow the restrictions of the original problem.
Oh yea, for those of you are still trying to figure out the best solution to the above problem: Send 2 pianos from A >> X, 2 pianos from B >> X, 1 piano from B >> Y, 5 pianos from C >>Y. This gives a total transportation cost of $73,000, which is the lowest possible cost while satisfying all the demand sites!
This, and similar problems and skill sets are very common for OR engineers. These techniques are highly applicable to the business world as well. Think about it, every company wants to maximize profit by minimizing costs, right!?!
Interested in how to solve this problem using linear programming?
Email me for the full explanation!
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