Operational research and ethics: A literature review

Any human activity raises ethical questions, questions about ‘good’ and ‘right’ ways to act and to live; or to put it differently, questions of values and responsibility. From its inception operational research (OR) has engaged with such questions in terms of professional behavior, the handling of preferences in OR, the societal role of OR, the process of OR intervention and the content of OR analysis. As a result, analytical methods and processes have been developed to help clients explore the ethical dimension of their decisions. The paper reviews the literature published in selected OR journals (Management Science; Operations Research; Interfaces; the European Journal of Operational Research; the Journal of the Operations Research Society; Omega; International Transactions in Operational Research; the Journal of Multi-Criteria Decision Analysis), organizing it along the lines of OR’s core competences. The review identifies a number of significant research programmes that are well established and are being energetically pursued; the research findings are being applied to a wide range of important issues. Ethical questions lie at the heart of the great governmental and commercial issues of the day: economic growth and instability; inequality and injustice; environmental degradation and sustainability. They also lie at the heart of the more mundane decisions of day-to-day OR. ‘Ethics’ therefore provides a useful focus for OR both in terms of raising the awareness of all concerned and in providing a theme for research. As a result of the review some research questions are suggested. There is much of interest, much to do.     

The importance of systems thinking in ethical and sustainable decision-making

Ethical values beyond the satisfaction of basic human needs are specific to each society at a given time. Modern societies are confronted to the challenges of disappearing natural resources, fierce competition on global markets, and climate change. In this paper we define ‘good’, and at the same time ‘ethical‘ decisions in the 21st century as being in accordance with the principles of Sustainable Development. Operations Research can assist sustainable decision-making in two ways: (1) through the tools of systems thinking, in particular system dynamics and soft system modelling, to provide insight into the way complex non-linear living systems and human societies function, and help making sustainable decisions, and (2) through educating and training young people in systems thinking. The paper presents examples of simple models that could serve in classrooms.     

Critical rationalism in practice: Strategies to manage subjectivity in OR investigations

The philosophical position referred to as critical rationalism (CR) is potentially important to OR because it holds out the possibility of supporting OR’s claim to offer managers a scientifically ‘rational’ approach. However, as developed by Karl Popper, and subsequently extended by David Miller, CR can only support practice (deciding what to do, how to act) in a very limited way; concentrating on the critical application of deductive logic, the crucial role of subjective judgements in making technical and moral choices are ignored or are at least left underdeveloped. By reflecting on the way that managers, engineers, administrators and other professionals take decisions in practice, three strategies are identified for handling the inevitable subjectivity in practical decision-making. It is argued that these three strategies can be understood as attempts to emulate the scientific process of achieving intersubjective consensus, a process inherent in CR. The perspective developed in the paper provides practitioners with a way of understanding their clients’ approach to decision-making and holds out the possibility of making coherent the claim that they are offering advice on how to apply a scientific approach to decision-making; it presents academics with some philosophical challenges and some new avenues for research.     

Energy-aware workload management models for operation cost reduction in data centers

In the last century, the costs of powering datacenters have increased so quickly, that datacenter power bills now dwarf the IT hardware bills. Many large infrastructure programs have been developed in the past few years to reduce the energy consumption of datacenters, especially with respect to cooling requirements. Although these methods are effective in lowering the operation costs they do require large upfront investments. It is therefore not surprising that some datacenters have been unable to utilize the above means and as a result are still struggling with high energy bills. In this work we present a cheap addition to or an alternative to such investments as we propose the use of intelligent, energy efficient, system allocation mechanisms in place of current packaged system schedulers available in modern hardware infrastructure cutting server power costs by 40%. We pursue both the quest for (1) understanding the energy costs generated in operation as well has how to utilize this information to (2) allocate computing tasks efficiently in a cost minimizing optimization approach. We were able to underline the energy savings potential of our models compared to current state-of-the-art schedulers. However, since this allocation problem is complex (NP-hard) we investigated various model approximations in a trade-off between computational complexity and allocative efficiency. As a part of this investigation, we evaluate how changes in system configurations impact the goodness of our results in a full factorial parametric evaluation.     

Behavioural modelling of career progression in the European Commission

Though manpower planning models have been part of OR for many years, and simulation has always been acknowledged as a potential approach, there are few reported applications of its use. In this case-based study we report on a micro-simulation model that exploits the structure of the European Commission’s appraisal and promotion rules, and includes regression-based sampling schemes which allow for non-Normal error terms to represent behavioural factors that led to the need for a new system. With a suitably parsimonious formulation the 20,000 person model runs very effectively, and the transparency associated with simulation proves an important factor in the successful use of the model as the basis for designing a promotion box system that was implemented across the Commission in 2009. The simulation modelling incorporates many Markov-type elements, and we reflect on important lessons learned from this combined use of micro-simulation and Markov-based approaches to manpower modelling.     

WASAN: The development of a facilitated methodology for structuring a waste minimisation problem

This paper contributes a new methodology called Waste And Source-matter ANalyses (WASAN) which supports a group in building agreeable actions for safely minimising avoidable waste. WASAN integrates influences from the Operational Research (OR) methodologies/philosophies of Problem Structuring Methods, Systems Thinking, simulation modelling and sensitivity analysis as well as industry approaches of Waste Management Hierarchy, Hazard Operability (HAZOP) Studies and As Low As Reasonably Practicable (ALARP). The paper shows how these influences are compiled into facilitative structures that support managers in developing recommendations on how to reduce avoidable waste production. WASAN is being designed as Health and Safety Executive Guidance on what constitutes good decision making practice for the companies that manage nuclear sites. In this paper we report and reflect on its use in two soft OR/problem structuring workshops conducted on radioactive waste in the nuclear industry.     

Executive views concerning decision support tools

Support tools for strategic-level decision-making have become increasingly popular. This study investigates the role of OR/MS tools in today’s strategic-level decision support tool market. Executives working in Finland’s 500 largest companies were asked about the decision support tools they use when making major decisions. The responses received indicated that executives actively use a variety of tools, and an average of five different strategic-level tools. Approximately 10% of the tools used could be identified as OR/MS type, these often suit the needs of larger companies with strategic logistical or production functions and compared to other tools, have a specific profile. Executives see advantages in using tools that provide cognitive, collaboration and communication possibilities, and also in using tools that make processes more efficient. OR methodologies have influenced some of the other tools on the market, but ‘soft OR’ tool usage could not be identified. Tools which support creativity are needed.     

Ubi Caritas? — Modelling beliefs about charities

In this paper we report on a project in which we explored with a number of officers from different charities their beliefs about charitable giving, and built explicit models of these beliefs so that they might be examined in a more systematic way than they can be when just talking about them. We discuss some of the issues and problems around creating and using explicit models of individuals' beliefs to share wisdom, and report some of the things that happened when we sought to do this. We suggest that our approach provides practical help with the problems of sharing views.OR has traditionally been geared to those organizations who are able and willing to pay for it; in this paper we report on an OR project in organizations to whom it has not usually been available.     

Planning sustainable community health schemes in rural areas of developing countries

In this research, we consider the planning of community health schemes by non-governmental or faith-based organisations in rural areas of developing countries, from both top-down and ground level viewpoints. We conclude that both types of planning approach are valid and necessary for sustainability of such developments. With top-down planning in mind, we describe our hierarchical models especially designed for location of community health facilities, with objectives pertaining to both efficiency and equity of provision. As an additional case study, we present modelling of the location of a maximal number of self-sustainable primary healthcare workers in a rural region of India.     

Ethics outside,within, or beyond OR models?

Since ethical concerns are calling for more attention within Operational Research, we present three approaches to combine Operational Research models with ethics. Our intention is to clarify the trade-offs faced by the OR community, in particular the tension between the scientific legitimacy of OR models (ethics outside OR models) and the integration of ethics within models (ethics within OR models). Presenting and discussing an approach that combines OR models with the process of OR (ethics beyond OR models), we suggest rigorous ways to express the relation between ethics and OR models. As our work is exploratory, we are trying to avoid a dogmatic attitude and call for further research. We argue that there are interesting avenues for research at the theoretical, methodological and applied levels and that the OR community can contribute to an innovative, constructive and responsible social dialogue about its ethics.     

Optimizing revenue in CDMA networks under demand uncertainty

Mathematical programming models for telecommunications network design are prevalent in the literature, but little research has been reported on stochastic models for cellular networks. We present a stochastic revenue optimization model for CDMA networks inspired by bid pricing models from the airline industry. We describe the optimality conditions for the model and develop a supergradient algorithm to solve it. We provide computational results that show the effects of the distribution and variance of demand. Finally, we discuss areas of future research, including a method to optimize the locations of the towers.     

Modeling cooperation on a class of distribution problems

In this paper we study models of cooperation between the nodes of a network that represents a distribution problem. The distribution problem we propose arises when, over a graph, a group of nodes offers certain commodity, some other nodes require it and a third group of nodes neither need this material nor offer it but they are strategically relevant to the distribution plan. The delivery of one unit of material to a demand node generates a fixed profit, and the shipping of the material through the arcs has an associated cost. We show that in such a framework cooperation is beneficial for the different parties. We prove that the cooperative situation arising from this distribution problem is totally balanced by finding a set of stable allocations (in the core of an associated cooperative game). In order to overcome certain fairness problems of these solutions, we introduce two new solution concepts and study their properties.     

Spanning trees with variable degree bounds

In this paper, we introduce and study a generalization of the degree constrained minimum spanning tree problem where we may install one of several available transmission systems (each with a different cost value) in each edge. The degree of the endnodes of each edge depends on the system installed on the edge. We also discuss a particular case that arises in the design of wireless mesh networks (in this variant the degree of the endnodes of each edge depend on the transmission system installed on it as well as on the length of the edge). We propose three classes of models using different sets of variables and compare from a theoretical perspective as well as from a computational point of view, the models and the corresponding linear programming relaxations. The computational results show that some of the proposed models are able to solve to optimality instances with 100 nodes and different scenarios.     

OR in healthcare: A European perspective

The European Working Group “Operational Research Applied to Health Services” (ORAHS) is one of the domain specific EURO Working Groups organized by EURO - the European Association of Operational Research Societies. In this paper we report on the development of ORAHS as a platform for OR in health, and analyse the papers presented at meetings over the 35 years of its existence. We propose a two-way framework for analysis, where one dimension is the nine stages of the product life cycle: identifying consumer requirements, designing a new service to meet these requirements, forecasting demand for such a service, securing resources for it, allocating these resources, developing Programs & Plans to use these resources for delivering the service, establishing criteria for service delivery, managing the performance of the service, and finally, evaluating its performance. The other dimension is a three-level classification into broad application areas referring to processes at different levels in healthcare: Patients & Providers, Units & Hospitals, and Regional & National. We use this framework to carry out a quantitative analysis of all the papers presented during the meetings of ORAHS since its inception in 1975. We then describe developments over this period in applying OR approaches and techniques to healthcare, and present an overview of the main application areas and challenges.     

Cost/risk balanced management of scarce resources using stochastic programming

We consider the situation when a scarce renewable resource should be periodically distributed between different users by a Resource Management Authority (RMA). The replenishment of this resource as well as users demand is subject to considerable uncertainty. We develop cost optimization and risk management models that can assist the RMA in its decision about striking the balance between the level of target delivery to the users and the level of risk that this delivery will not be met. These models are based on utilization and further development of the general methodology of stochastic programming for scenario optimization, taking into account appropriate risk management approaches. By a scenario optimization model we obtain a target barycentric value with respect to selected decision variables. A successive reoptimization of deterministic model for the worst case scenarios allows the reduction of the risk of negative consequences derived from unmet resources demand. Our reference case study is the distribution of scarce water resources. We show results of some numerical experiments in real physical systems.     

Soft OR in China: A critical report

As China’s reform steps into the ‘deep water zone’ where value complexity becomes paramount, general-purpose decision-making aids such as Operational Research (OR) are increasingly confronted with the challenge of dealing with interest conflicts. However, due to historical events and institutional circumstances, OR in China to date is largely constrained by a technocratic approach which is not fit for purpose. Encouragingly, recent OR innovations inside China signify a conscious move to embrace value plurality and tackle social conflicts. OR is not merely a neutral tool for solving technical problems, but a world-building discourse that shapes society. The future of OR, particularly Soft OR, in China will be determined by whether OR workers are willing and capable to act as institutional entrepreneurs promoting scientific and democratic decision-making that deepens the reform toward an open, just and prosperous society. The implications go beyond the OR community and China’s borders.     

A review of O.R. practice in Spain

Summary First, a brief history of the development of Operations Research practice in Spain is presented. Secondly, and this forms the bulk of the paper, the most relevant OR applications in Spain, reported in the specialized literature, are commented in some detail. We have adopted the application-oriented classification criteria of IAOR, which allows us to distinguish those subjects that have been tackled more frequently. Finally the fluctuating role played by the university OR groups in providing advice to firms and public and private institutions is considered.     

A graph-theoretic perspective on the links-to-concepts ratio expected in cognitive maps

Strategic options development and analysis (SODA) has maintained that it expects a links-to-concepts ratio of 1.15–1.20 in cognitive maps. This expectation is investigated from a graph-theoretic perspective in order to highlight two issues that the SODA literature has not mentioned. First, the ratio is impossible to achieve in tree-structured maps. Second, adherence to the expectation can result in minimally connected maps. Both issues are discussed with examples and calculations, and a conclusion is drawn that graph theory is a potentially rich, yet relatively untapped, source of insights for not only SODA, but for soft OR and systems thinking in general.     

A review of the recent contribution of systems thinking to operational research and management science

The systems approach, or systems thinking, has been intimately connected with the development of OR and management science initially through the work of founders such as Churchman and Ackoff and latterly through innovations such as soft systems. In this paper we have undertaken a review of the contribution that systems thinking has been making more recently, especially to the practice of OR. Systems thinking is a discipline in its own right, with many theoretical and methodological developments, but it is also applicable to almost any problem area because of its generality, and so such a review must always be selective. We have looked at the literature from both a theoretical and an applications orientation. In the first part we consider the main systems theories and methodologies in terms of their recent developments and also their applications. This covers: the systems approach, complexity theory, cybernetics, system dynamics, soft OR and PSMs, critical systems and multimethodology. In the second part we review the main domains of application: strategy, information systems, organisations, production and operations, ecology and agriculture, and medicine and health. Our overall conclusion is that while systems may not be well established institutionally, in terms of academic departments, it is incredibly healthy in terms of the quantity and variety of its applications.