O.R. Education and Developing Economies with Special Reference to India

The paper reviews the current state of application of O.R. in general and in developed economies in particular. It then analyses the causes for unsatisfactory application of O.R. in developing economies. Based on the analysis, the paper proceeds to review the existing O.R. education and training and develops an integrated design of O.R. education and training for developing economies. The paper outlines the role that international agencies should play in implementing the proposed scheme of O.R. education and training for developing economies.     

Location of slaughterhouses under economies of scale

The facility location problem described in this paper comes from an industrial application in the slaughterhouse industry of Norway. Investigations show that the slaughterhouse industry experiences economies of scale in the production facilities. We examine a location-allocation problem focusing on the location of slaughterhouses, their size and the allocation of animals in the different farming districts to these slaughterhouses. The model is general and has applications within other industries that experience economies of scale.We present an approach based on linearization of the facility costs and Lagrangean relaxation. We also develop a greedy heuristic to find upper bounds. We use the method to solve a problem instance for the Norwegian Meat Co-operative and compare our results to previous results achieved using standard branch-and-bound in commercial software.     

An Application of Dynamic Programming to Pattern Recognition

This paper presents a problem in pattern recognition and formulates it in terms of a dynamic-programming model. Although dynamic programming is usually thought of as an O.R. tool applied to management problems, this paper shows that it has natural applications in pattern matching and recognition, developing aspects of fifth generation computing technology.     

The Search for Appropriate O.R.: A Review of Operational Research in Developing Countries

This paper is a review of the literature relating to the application of O.R. in developing countries. The paper attempts to identify the special factors which affect decision problems in developing countries. Some desirable characteristics for O.R. in this context are outlined. The paper then summarises the results of a review of published studies, and some criticisms are made of current O.R. work.     

Experiences with Using Expert Systems in O.R.

Increased awareness of expert systems technology, and the availability of relevant software, has tempted many O.R. groups to investigate the expert systems approach. This paper considers the strategies open to O.R. groups interested in employing expert systems, reviews some of the relevant software, and discusses what those O.R. groups who have already investigated the use of expert systems methods are actually doing.Some of the authors' experience of developing expert systems is discussed. The development of an expert system that helps bankers analyse company accounts is presented. The use of expert system methods as vehicles for decision analysis, and the possibilities for producing systems that act as O.R. consultants are also discussed.     

Using Repertory Grids for Problem Construction

In the last couple of years, O.R. workers have expressed interest in the use of repertory grids as a part of their armoury for tackling messy problems in organizations. This paper is designed to describe some of our experiences of using grids to aid the process of problem construction. It will also express some of our views of the theoretical and technical aspects of their use for working on problems.The principles behind the use of grids invite the design of other methods for managing qualitative problem data. The paper will briefly introduce some we have found helpful.     

How Relevant is Operational Research to Development? The Case of Kenyan Industry

This paper proposes that the debate over O.R.'s role in development can be advanced by looking at a specific industrial environment. The Kenyan example suggests that for O.R. to make a contribution to this developing society it must: first, be defined as broadly as possible so as to include the most basic problem-solving techniques, and second, contribute to the diffusing of these techniques throughout the economy. O.R. should be viewed less as the province of an elite group of specialists— and more as a common resource available to managers at any level of industry. O.R. educators in developing nations can "democratise" quantitative techniques by incorporating them into such traditional business disciplines as accounting, marketing, and production. These courses should stress problem-solving and rely on cases drawn from local experiences. The paper ends by describing a pilot project, the Case Research and Documentation Centre, which is designed to promote more pragmatic management education and research in Kenya.     

Lessons for O.R. from the World of Banking

This paper will be of interest to the reader concerned with O.R. in banking and to the more general reader concerned with the successful development of O.R. The paper describes and analyses the complex historical development of the O.R. Group in the National Westminster Bank, which, since 1966, has grown into one of the leading O.R. groups in finance. As well as providing a new and original documentation of the type of problem areas and approaches that have been examined in the relatively short history of O.R. in banking, the paper draws on the experience of O.R. at NatWest and that of other O.R. groups in other European banks in order to identify the factors which determine whether or not an O.R. group will develop successfully.     

The Changing Role of O.R.

The authors set out to consider the activities of their own O.R. group at British Airways in the light of Russ Ackoff's papers delivered at the 1978 ORS Conference, but the paper has developed into a discussion of Ackoff's ideas from the viewpoint of an in-house industrial O.R. group that has had considerable success in implementation and has thought a great deal about what it is trying to do. Particularly relevant is the emphasis placed by this O.R. group on highly interactive planning models and systems and on an evolutionary approach to development. Some attempt is made to put Ackoff's ideas into an historical perspective and his main points are discussed one by one. The authors are in sympathy with the direction Ackoff is pressing, but not with the gloom his paper has generated in some quarters.     

Pricing Policy Models: A Case Study in Practical O.R.

A simple but robust and widely applicable approach to determining the price discount to use during periodic sales promotions is described. The approach provides an illustration of O.R. methodology, and it is discussed in the context of a problem formulation exercise used for O.R. courses. This discussion clarifies alternatives and provides cautionary notes for those wishing to implement the approach.     

Play theatre a new way to teach O.R.

In this paper we present a teaching experiment which is particularly motivating for students following an Operational Research course. The experiment consists of the presentation of a theatre play by the students in which they integrate a real world problem, its modelisation, the use of associated software and sensitivity analysis. This experiment can easily be reproduced by any teacher in O.R.     

Quantitative Forecasting—the State of the Art: Econometric Models

Econometric model building for forecasting has developed substantially over the past 15 years. Nevertheless, operational researchers have neglected these new developments. This paper defines nine stages the forecaster must go through when developing an econometric model. Each stage is discussed with reference to the most recent research. The complexity of econometric model building requires the forecaster to adopt a modelling strategy. Two have been proposed in the literature; one moves from a specific model to a more general version, the second goes from the general to the specific. Five recent O.R. studies using econometric methodology are then evaluated, highlighting the common areas of weakness. They are those areas that econometricians have paid most attention to in their recent research. The paper then surveys the effectiveness of econometric models compared to alternative approaches, concluding with some recommendations to the O.R. worker in forecasting. In particular, it recommends that more attempts are made to develop econometric models for O.R. applications.     

The values of nonstandard exchange economies

R. J. Aumann has stated and rigorously proved the value equivalence theorem for exchange economies with a non-atomic continuum of traders. The analogous results is established here for nonstandard exchange economies using Abraham Robinson’s calculus of infinitesimals. The proof is patterned after a short heuristic argument given by Aumann. The research in this paper was supported in part by the National Science Foundation and the Ford Foundation.     

The Impact of Operational Research on Agriculture

The paper shows that agriculture is one of the United Kingdom's largest industries. It would therefore be expected that O.R. could have made a significant contribution to decision making. But achievements in practice have been disappointingly small. The industry comprises of a large number of small individual businesses which do not permit specialisation in management functions. Consequently, technical advice and much R and D is provided from public funds. O.R. applications for agriculture have mainly been developed by Universities, Colleges, State Advisory Services and QUANGOS.The paper discusses some techniques used in agriculture—linear programming, dynamic programming and simulation—and outlines some problems encountered with these. Other techniques have had limited uptake and application. Reasons for the disappointing impact of O.R. are discussed as a set of problems-those specific to farmers and their systems; those specific to computer use; problems in recruiting and training O.R. specialists and problems in communication.     

Real-World O.R./M.S. Applications in Journals

In this paper, we present the results of a study of real-world applications of O.R./M.S. as seen in journals. Five leading journals in the field are surveyed, and real-world application articles are classified using a two dimensional framework consisting of orientation and decision. The orientation dimension separates strategically oriented applications with long-term implications and tactically oriented applications with medium- and short-term implications. The decision dimension refers to the type of decision in the application-largely structured or largely unstructured. The major O.R./M.S. topics are placed in the resulting four quadrants, and articles published in the four most recent volumes of the five journals are classified. Based on the results of this survey, the thrust and shortcomings of implementation research are discussed. Some measures for enhancing publication of field-based research are also proposed.     

The Prospect for O.R. in the Nigerian Government Service—An Administrators' Viewpoint

The paper reports the results of interviews with senior government administrators in Nigeria in which they were asked a range of questions about their own work and about the problems that are likely to be encountered in trying to introduce operational research into the government service. It is thus in contrast with most papers on O.R. in developing countries, which are written primarily from the viewpoint of practitioners. The administrators confirmed that there was a wide range of problems recognized as being suitable for the O.R. approach, and identified some of the barriers to the introduction of an effective O.R. service.     

Corporate Planning and Its Use of O.R. in the N.C.B.: A Personal View

Moving from Operational Research to Corporate Planning within one organisation is a rather modest change, which nevertheless leads to a different perspective. While still an advisory function, Corporate Planning, to be successful, has to maintain itself at the centre of a `messy' system tackling `messy' problems. Holding on to a clear strategy in such circumstances is not only difficult but vital. The success of the strategy depends on its robustness and ability to adapt to new circumstances. Recent debates in the O.R. literature have focused on the importance of robustness and the nature of uncertainty using the paradigms of rational and bureaucratic processes. This is a useful perspective from which to view our activities and the relative roles of Operational Research and Corporate Planning, either separately or together. The term `mature' O.R. is used to differentiate research that has been built up over many years in the N.C.B. from the problem solving activity often used to characterise O.R. The challenge is to prevent maturity developing into old age.     

A Teachers' Network for Third World O.R.

The progress of O.R. in developing countries has been hampered by the lack of appropriate educational materials. A contribution has been made with the writing of a book of case exercises. Several teachers in different countries have tried the book with a variety of students. The feedback has been encouraging. Initiatives are being taken, supported by IFORS, to build a wider network of teachers of O.R. for developing countries.     

Introducing the Microcomputer into the O.R. Department

This paper reviews the typical main-frame computer services that are currently available and by accepting the alleged advantages of microcomputers postulates the ideal computing requirements of O.R. departments. Experience of microcomputers in O.R. departments, within the N.C.B. and elsewhere, is considered in relation to these ideal requirements. It is concluded that although some main-frame computer services will remain essential to O.R. and accepting that the main-frame can give a reasonable general computing service, the micro offers additional advantages. These include: lower cost and/or better service, the ability to configure the equipment exactly to meet O.R. needs; full control over applications and priorities; and portability - which means that computing power can now be taken direct to the manager by the O.R. department.