The Model-Building Process

The Model-Building Process

1. use

   • Operations research
     • Solve the problem of an organization
       • follow the next steps
         • 1. Formulate the Problem
           • Defines the problem
             • Specify objectives
             • Specify the parts of the organization
         • 2. Observe the System
           • collect data
             • Estimate the value of the parameters
         • 4. Verify the Model and Use the Model for Prediction
           • Determine if it is an accurate representation of reality
             • Performance of variable values
         • 5. Select a Suitable Alternative
           • Model and a set of alternatives
             • Choose the alternative
         • 6. Present the Results and Conclusion
           • Presents the model
             • Present the results of the study
           • Recommendation of step 5 to the individual or decision-making group
         • 7. Implement and Evaluate Recommendations
           • Constantly monitor
             • Ensure that they achieve the objectives
         • 3.Formulate a Mathematical Model
           • Develops a mathematical model
       • EXAMPLE
         • CITGO Petroleum
           • Optimizing Refinery Operations
             • wanted to minimize the cost of operating
               • The Lake Charles refinery estimated key relationships
                 • linear programming (LP)
                   • run
                     • Daily strategy for the operation of the refinery
                   • Model to optimize the operations of the refinery
                     • Validate the model
                       • Inputs and outputs
                         • Collect for a month
                     • Cost minimization, Inventory restrictions Desired quality, Plant capacities and Inventory of each final product
           • The Supply Distribution Marketing (SDM) System
             • mathematical model
               • Make supply decisions
                 • distribution
                   • commercialization
               • INSTALL
                 • database
                   • Sales record, Inventory, Trades and exchanges of all refined products
               • modelo de flujo de red de costo mínimo (MCNFM)
                 • Continuously evaluate
                   • changes
                     • Improve communication and information flow

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