Operations Research

Some problems have a combination of possibilities so large that it is impossible without using Operations Research (OR) methods to find an optimal solution


Operations Research (abbreviated as O.R.) is the application of scientific and mathematical methods to the study & analysis of problems involving complex systems. The term Operational Research may alternatively be used instead of Operations Research. Analytics on the other hand, is the scientific process of transforming data into insights for making better decisions. Operations Research and Analytics drive performance and change in organizations of all types, including large and small, private and public, profit and nonprofit organizations. Using techniques like mathematical modeling to analyze complex situations, Operations Research and Analytics enable more effective decisions and more productive systems based on robust data, the more complete consideration of available options, and careful predictions of outcomes and estimates of risk.


In other words, Operations Research (OR) is an analytical method of problem-solving and decision-making proven to be useful in the management of organizations. In operations research, problems are broken down into basic components and then solved in defined steps by mathematical analysis. Analytical methods used in Operations Research include mathematical logic, simulation, network analysis, queuing theory , and game theory. The process can be broadly broken down into the following steps:

  1. A set of potential solutions to a particular problem are developed. This could be a large set in some cases

  2. The various alternatives derived in the first step above are analyzed and reduced to a small set of solutions most likely to prove workable.

  3. The alternatives derived in the second step above are subjected to simulated implementation, and if possible, tested out in real-world situations. In this final step, psychology and management science are often taken into consideration and play important roles.


In Operations Research, mathematical techniques are applied to decision making. A problem is first clearly defined and represented (modeled) as a set of mathematical equations. It is then subjected to rigorous computer analysis to yield a solution (or improve an existing solution) which is tested and re-tested against real-life situations until an optimum solution is found. To further explain this, our OR professionals first represent the system in mathematical form and instead of using trial and error on the system itself, they build an algebraic or computational model of the system and then manipulate or solve the model, using computers, to come up with the best decisions. Operations Research (OR) applies different approaches to different types of problems, including dynamic programming, linear programming, and critical path method. The application of these techniques as part of an Operations Research work are used in handling complex information in allocation of resources, inventory control, determining economic reorder quantity…and the like. Forecasting and simulation techniques such as Monte Carlo method are used in situations of high uncertainty such as market trends, projecting revenue and traffic patterns.


Operations Research (OR) is regularly applied in many areas including:

  • Manufacturing plants

  • Supply chain management (SCM)

  • Financial engineering

  • Marketing and revenue management systems

  • Healthcare

  • Transportation networks

  • Telecommunication networks

  • Energy Industry

  • Environment

  • Internet commerce

  • Service Industries

  • Military defense


Applications of Operations Reseach (OR) in these and other areas deal with decisions involved in planning the efficient allocation of scarce resources such as materials, workers, machines, cash, time…etc. to achieve stated goals and objectives under conditions of uncertainty and over a timespan. Efficient allocation of resources may necessitate establishing effective policies, designing processes, or relocating assets.


AGS-Engineering employs an experienced group of professionals with a strong background on descriptive, diagnostic, predictive and prescriptive analytics and operations research. Our operations research professionals collaborate with some of the most respected universities and research institutes in the world, giving us a significant competitive edge. Our operations research engineers keep solving the World’s most complex business challenges in partnership with our customers. Our operational research consulting services provide objective, analytical and quantitative support for the evaluation and optimization of complex situations arising in the industry, service and business sectors. The goal of our operational research consulting services is to optimize the effectiveness of resources within a wide variety of internal and external constraints. Key Operations Research (OR) issues our industrial engineers work on include optimization, planning, scheduling, efficiency and productivity.


As with any other projects, when dealing with Operations Research projects, we work in partnership with our clients to formulate the problem in a way that will lead to an effective and useful solution. This is where the wide-ranging experience our industrial engineers and mathematicians have can have a major impact to your organization.

Some of our services in the field of Operations Research (OR) are:

  • Analyzing Systems

  • Decision Support

  • Business Process Improving

  • Data Mining

  • Modelling & Simulation

  • Statistical Modelling

  • Analytics & Data science

  • Visualization

  • Risk Assessment

  • Performance Assessment

  • Portfolio Selection

  • Appraisal of Options and Optimization

  • Supply Chain Optimization

  • Software Development Services

  • Training


We can analyze and offer solutions that your management would not be able to find in a significant short time without using OR techniques. Some problems have a combination of possibilities so large that it is impossible without using OR methods to find an optimal solution. As an example a dispatcher in a transport company that has to distribute to a set of customers with a set of trucks, and to do this to determine in what order the truck must visit customers. This problem can be further complicated if we take into consideration company-specific difficulties, such as the hours of availability of the clients, the size of shipments, weight constraints...etc. The more complex your problems, the better our Operations Research (OR) solutions will be performing. For similar problems and many others, AGS-Engineering can offer solutions (routes and/or solutions) that are significantly less expensive than what someone can achieve with standard methods and not using OR. The types of problems for which operational research can provide solutions offering significant gains are limitless. Think of the most important or most expensive resource in your corporation and we will find a way to use it more effectively. The solutions proposed by us will be mathematically rigorous, so you have the assurance of a successful result, adapted to your reality, even before applying the changes. Our services will sometimes come in the form of a report with recommendations, new management rules, repetitive calculations supported by us, or in the form of tools allowing you to repeat for yourself the optimization calculations according to your needs. We will adapt to your needs to make sure you get the best out of our services.