Applications of Operations Research

Successful OR applications can be found in a broad array of industries dealing with challenges such as
planning, routing, scheduling, forecasting, process analysis and decision analysis. OR is also contributing greatly to
healthcare services such as surgical and bed scheduling, portering operations, emergency transport, accident trend
analysis and treatment optimization. In the service sector, OR techniques have been found especially helpful when
dealing with variability in service delivery such as call centres, queues for service and medical wait times.

A sampler of typical OR applications includes:

• Optimization of LTL trucking (Yellow Freight)

• Rail Car Optimization (CP Rail)
• Optimal package designs (Domtar Packaging, Ltd)
• Manpower planning models (Treasury Board Secretariat)
• Aircraft operations (Delta Airlines)
• Routing of Waste Trucks (Waste Management Inc.)
• Surgical bed optimization (Fraser Health Authority)
• Pre-board passenger screening (Vancouver International Airport )
• Resource allocation in a mental health hospital (Douglas Hospital)
• Switching network studies (Bell-Northern Research, Ltd)
• Maintenance Strategies for the US Coast Guard
• Revenue Management (American Airlines)

OR has been applied in many industry sectors including the following:

Transport and Travel. OR techniques are used by airlines and rail companies to offer varying fares and make
higher revenues by filling more seats at different prices - an OR technique known as Yield Management. All
airlines depend on the effective use of OR techniques to make them operate at a profit.

Retailing. In supermarkets, data from store loyalty card schemes is analyzed by OR groups to advise on
merchandising policies and profitability improvement. OR methods are also used to decide when and where new
store developments should be made.

Health. Hospital managers use OR to make decisions such as determining the optimal utilization of operating
rooms and personnel, assessing the risks posed by patients with various medical conditions, and deciding
necessary levels of perishable medicine in stock.

Financial Services. OR practitioners address issues such as portfolio and risk management, planning and
analysis of customer service. They are widely employed in Credit Risk Management—a vital area for lenders
needing to ensure that they find the optimum balance of risk and revenue.

Government. OR is a key contributor in modernizing government services and making them more efficient.
Some OR applications include modeling the impact of performance related pay for teachers, evaluating
government call-centers, projecting the size of the prison population, and national defense.

Centre for Operations Excellence 209-2053 Main Mall, Vancouver, BC V6T 1Z2
Tel: 604-822-1800 Email: info@coe.ubc.ca www.coe.ubc.ca