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Profits from the Decision Laboratory
Platt, William J.
1/2  (Winter 1959): 87-91

This article focuses on the efforts of scientists to help corporate management make the right decisions and run their businesses more effectively. Operations research offers the businessman bigger profits and improved effectiveness in major operating problems, and management is getting more and more interested in this new science of decision. The kinds of problems to which operations research is applicable can be illustrated by a problem common to all manufacturing firms, that is, the problem of scheduling purchased parts. Everyone associated with manufacturing knows that there is no pat answer to the question of inventory level because of many complexities, some of which argue for small inventories, and others of which argue for large inventories. Arguing for large inventory are such factors as discounts on purchase price for large quantity orders, low per unit costs of ordering and transportation lot large amounts, and low shortage costs in assembly when parts are in ample supply.

 

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