There is little value to either a poor solution to a correctly formulated problem or a good solution to one that has been incorrectly formulated. The analyst is usually not the decision maker and may not be part of the organization, so care must be taken to get agreement on the exact character of the problem to be solved from those who perceive it. Because of the ambiguity of the perceived situation, the process of formulating the problem is extremely important.
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The data may be immediately relevant to the situation or investigations may reveal the need for additional data collection.įormulate the Problem The first analytical step of the solution process is to formulate the problem in more precise terms.Īt the formulation stage, statements of objectives, constraints on solutions, appropriate assumptions, descriptions of processes, data requirements, alternatives for action and metrics for measuring progress are introduced. Historical data describing organizational operations and performance may be present in various forms. The figure shows the situation with vague outlines because most problems are poorly defined in their original conception. It is impossible to circumscribe the breadth of circumstances that might be appropriate for this discussion, for indeed problem situations that are amenable to objective analysis arise in every area of human activity. The problem may be actual or abstract, it may involve current operations or proposed expansions or contractions due to expected market shifts, it may become apparent through consumer complaints or through employee suggestions, it may be a conscious effort to improve efficiency or a response to an unexpected crisis.
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The individual or group called upon to aid the decision maker in the problem solving process is the analyst.ĭecision making begins with a situation in which a problem is recognized. The decision maker is the individual or group responsible for making decisions regarding the solution. The problem is a situation arising in an organization that requires some solution. On this page we review the steps of the OR Process that leads from a problem to a solution. The goal of operations research is to provide a framework for constructing models of decision-making problems, finding the best solutions with respect to a given measure of merit, and implementing the solutions in an attempt to solve the problems.