SPRING 2007
VOL. 8 NO. 2

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Giant global corporations use them to figure out their supply chain problems, governments use them to work on emergency preparedness plans, farmers use them to figure out what crops to plant and when, and the military uses them to figure out sophisticated deployment and logistics plans. But they’re also used to figure out the best way to tour through DisneyWorld, or how to load a truck with goods so that they can be off-loaded in proper order. They’re decision models, and they’re used to help people and companies optimize their choices.

Decision models are a common tool in the field of operations research, which uses data and mathematical techniques to solve specific business problems. Saul I. Gass, professor emeritus of management science, is a pioneer in the field of operations research. Gass helped develop the technique of linear programming, a simple but powerful tool that allows researchers to create decision models. The power of linear programming is both its remarkable flexibility and its power to model a large range of tremendously complex problems.

Today it seems natural to have computer programmers, mathematicians and engineers working on business problems. But it was a revolutionary idea in the 1960s, when Gass and his colleagues first transplanted techniques and models developed for the military sector to the private sector business, starting with the oil refinery industry. His work went on to have an enormous impact across a variety of fields.

Gass is also known for mentoring following generations of operations researchers and for acting as an ambassador for the field. “Saul had an uncanny ability to explain the methodology,” says Frank Alt, associate professor of management science and statistics. His layman-friendly book Linear Programming is one of the only computer programming textbooks to use cartoons to explain its concepts. Gass later explained the origin, applicability and drawbacks of models in a series of papers titled “Model World.”

Gass’ Smith School colleagues are continuing to provide thought leadership—as well as real solutions to real problems—in operations research. Bruce Golden, France-Merrick Professor of Management Science, recently worked with the University of Maryland Hospital’s cardiac surgery department to optimize the number of beds in the intensive care unit (ICU), where there is one nurse per bed, and the remote telemetry unit, where less staff is required. “You can’t perform surgery if all of the ICU beds are taken, and if all the remote telemetry beds are occupied, then you can’t move patients from the ICU into the less expensive ward,” says Golden. “So it’s important to get the mix of beds right. Our model was able to save the hospital about $3 million on paper.” Michael Fu, professor of management science, is working with the FDIC to evaluate each of its 6,000 member banks in order to determine level of premium to charge for FDIC insurance.

What kinds of problems will operations research solve in the future? “The emergence of new fields creates opportunities for the use of mathematical models,” says Alt. “We can’t always predict what those new fields will be, but we can predict that there will always be the increased need for models and their analysis.”

Interested in learning more? A new book, Perspectives in Operations Research: Papers in Honor of Saul Gass’ 80th Birthday, co-edited by Alt, Fu, and Golden, was published by Springer as part of its “Research/Computer Science Interfaces” series. The first part of the book provides a sweeping overview of the history of the operations research field and Gass’ contributions, while the second part is a sampling of current research topics in the field. Papers were contributed by a bevy of distinguished scholars in operations research.

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Copyright 2007 Robert H. Smith School of Business