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40 years of EURO - History, Applications, Future Potentials. EURO XXV, 8-11 July 2012, Vilnius H.-J. Zimmermann, Aachen. AGENDA. 1. History - Professional and Communications Environment in the 1970‘s - The Birth Process of EURO - EURO today.

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40 years of euro history applications future potentials

40 years of EURO- History, Applications, Future Potentials

EURO XXV, 8-11 July 2012, Vilnius

H.-J. Zimmermann, Aachen

agenda
AGENDA

1. History - Professional and Communications Environment in the 1970‘s - The Birth Process of EURO - EURO today

2. Applications of OR - Decision Logic vs. Dedicated Decision Support Systems (DDSS) - From Packaged Solutions (Insellösungen) to System Optimization - IT vs. OR? - Areas of Application and Results

3. Potentials and Weaknesses of OR - Applicability - Education and Training - Public Visibility

EURO XXV, 8-11 July 2012, Vilnius - H.J. Zimmermann, Aachen20.08.2014

1 history the 1970 s
1. History - The 1970‘s

Logistics

  • Europe - USA: Byship (5 - 13 day)
  • Super Constellation: 24 hours, onestop
  • No electronic bookingsystems (slow !)
  • Customs- andPassportControlateach European Border
  • However: No Security Measuresat Airports; Noterrorism; No Hijacking(Pleasant Air Travel).

EURO XXV, 8-11 July 2012, Vilnius - H.J. Zimmermann, Aachen20.08.2014

1 history the 1970 s1
1. History - The 1970‘s

Communications

  • No Fax; No e-mail
  • Telephone and Telex (1 Min. Transatl. = -,74 € / today: -,01 €/ Min.)
  • No Mobile Phones (today: 3.5 Billion Users)
  • No Courier Services (Fed.Ex. etc.)
  • Letter intercontinental: 2 - 3 weeks
  • Each single letter had to be typed
  • No www
  • No Social Nets.

EURO XXV, 8-11 July 2012, Vilnius - H.J. Zimmermann, Aachen20.08.2014

1 history the 1970 s2
1. History - The 1970‘s

Professional Environment

  • 3 large OR - Journals (OR, Mgt.Sc., ORQ) and several small national journals(in national language)
  • „Iron Curtain“
  • Professional Societies: 2 large in USA (TIMS, ORSA) with appr. 10,000 members
  • IFORS (without any terretorial structure)
  • Europe: 1 „Big“ Society (3,200 members) in Great Britain. 13 National Societies (between 150 and 800 members)
  • Hardly any professional communication between European Societies
  • Languages: 12 - 15 relevant European languages. English less popular than now.

EURO XXV, 8-11 July 2012, Vilnius - H.J. Zimmermann, Aachen20.08.2014

1 history the 1970 s3
1. History - The 1970‘s

Professional Environment (2)

  • Conferences: National Conferences, IFORS - Conference every 3 years. USA: TIMS and ORSA every year
  • Business (in Germany): Most larger corporations had one or severalOR - departments (Mid - 60‘s to End - 70‘s). Demand for OR - Seminars
  • OR: Strongly method - oriented; Lack of data, software, hardware (Price forstoring data decreased by a factor of 5 Mill. until today ! Running time reductionfor LP - codes last 10 years: 5.4 Mill.)
  • OR - Departments: Consisted mainly of mathematicians and engineers
  • OR - Education: OR - Masterprograms in USA, Great Britain (and Japan).On the continent: Single courses in Math. - Dept. or Bus. - Dept., private seminars
  • OR - Reputation (Ackoff, 1979): „American Operations Research is dead though not yet burried“.

EURO XXV, 8-11 July 2012, Vilnius - H.J. Zimmermann, Aachen20.08.2014

1 history the birth process of euro
1. History - The Birth - Process of EURO

August 23, 1972

After some preparation the Presidents of European OR-Societies meet in the framework of the IFORS-Conference in Dublin and agree, that the communication and co-operation of European OR-Societies is sub-optimal.

September 3/4, 1973

Representatives of 11 European OR-Societies meet in Düsseldorf to discuss and decide on future activities.

May 3/4, 1974

Representatives of 8 European OR-Societies meet in Amsterdam and decide to have the first European OR-Conference in 1975.

EURO XXV, 8-11 July 2012, Vilnius - H.J. Zimmermann, Aachen20.08.2014

1 history the birth process of euro 2
1. History - The Birth - Process of EURO (2)

January 27, 1975

First European OR-Conference with appr. 500 participants takes place in Brussels.

At the end of this conference 10 European OR-Societies sign the „Agreement for European Co-operation in the Field of Operational Research“ with the following Preamble:

„In the belief that the purpose of Operational Research is to improve the well-being of people by improving the relevance and effectiveness of the institutions and organizations which serve them":

that it seeks to do so by means of the rational methods of science exercised by representatives of divers disciplines working together, each supporting the others;

that this co-operation which respects no boundaries between disciplines should respect no boundaries between people; and

that the Operational Research Societies of Europe should more closely co-operate one with another to further the theory and practice of Operational Research.”

EURO XXV, 8-11 July 2012, Vilnius - H.J. Zimmermann, Aachen20.08.2014

1 history the birth process of euro 3
1. History - The Birth - Process of EURO (3)

It was also decided that:

  • A working group to design a constitution should be established
  • To start 7 working groups
  • To start the Euro-Bulletin
  • To prepare the publication of a European OR-Journal.

EURO XXV, 8-11 July 2012, Vilnius - H.J. Zimmermann, Aachen20.08.2014

1 history euro today
1. History - EURO Today
  • EURO now has 30 member countries
  • EJOR, the internationally leading OR-Journal (No.1 according to number of articles,No.2 according to citations)
  • EURO has launched 3 further Journals (Transportation and Logistics, Decision Processes and Computational Optimization)
  • EURO has several Prizes and Awards
  • EURO organizes a number of specialized events
  • EURO has 28 working groups dedicated to applied as well as theoretical topic
  • EURO has an attractive web-page and a permanent secretariat
  • Last not Least: We are at the 25th EURO-Conference. These conferences with up to 2000 delegates were located from Jerusalem to Reykjavik and from Lisbon to Istanbul. This time we are 24 km South-East of the Centre of Europe.(Acc. to the National Geographic Institute of France!)

EURO XXV, 8-11 July 2012, Vilnius - H.J. Zimmermann, Aachen20.08.2014

1 history euro today 2
1. History - EURO Today (2)
  • EURO has a well-balanced definition of OR:

Operational Research (O.R.) is the discipline of applying advanced analytical methodsto help make better decisions.

In its evolution O.R. merged contributions from cognitive sciences, computer science, economics, mathematics and organisation theory. At the same time it became relevant to engineering, management, environmental and political sciences, but also to artificial intelligence, molecular biology and data mining as well as to archaeology, forestry andmodern art.

HENCE: EURO has become a very important and productive promoter for OR in Europe and the World. CONGRATULATIONS!

Let us now look at another aspect of OR: APPLICATIONS

EURO XXV, 8-11 July 2012, Vilnius - H.J. Zimmermann, Aachen20.08.2014

2 applications of or
2. Applications of OR

To clarify the term „application“:

4 Interpretations:

  • Apply one theory to another(Fuzzy Linear Programming)
  • Apply one theory to a model(Stochastic Inventory Control)
  • Apply one theory via a method to arrive at a tool(ILOG, ...)
  • Apply 1. to 3. to a real problem

I shall only mean 4., when I talk about applications.

EURO XXV, 8-11 July 2012, Vilnius - H.J. Zimmermann, Aachen20.08.2014

2 applications of or1
2. Applications of OR

Decision Logic vs. DDSS

  • The „basic decision model“ of the logic of decisions as a singular, timeless, one criteria act of choice does not help very much in practise.
  • Real decisions in DDSS are rather multi person, multi criteria, time consuming and complexity reducing information processes.
  • The time scale (strategic or tactical planning vs. control) determines the theories used and the structure of the DDSS.

EURO XXV, 8-11 July 2012, Vilnius - H.J. Zimmermann, Aachen20.08.2014

2 applications of or2
2. Applications of OR

From Packaged Solutions (Insellösungen) to Systems Optimization

  • Packaged SolutionsOften homogeneous solution method or suboptimal(Easier for publication!)

Systems Optimization

  • Problems : Complexity : DecompositionDifferent solutions possible.
  • Examples:

Maritime Container Harbor

Airport Ground Optimization

EURO XXV, 8-11 July 2012, Vilnius - H.J. Zimmermann, Aachen20.08.2014

2 applications of or3
2. Applications of OR

Example:

Container Terminal

Burchardkai (CTB),

Hamburg

From 1968 to 2014

EURO XXV, 8-11 July 2012, Vilnius - H.J. Zimmermann, Aachen20.08.2014

2 applications of or4

Real-time

controlled

Container Cranes

Crane 1

Crane 2

Identification-points

Real-time Controlled

Container Movers

Public Road

Entrance Gate

Real-time controlled

Road Trucks

Exit

Gate

Crane A

Crane B

Crane C

Crane D

Crane E

Crane F

Container

Storage Area

Ship

Crane I

Ship

Crane II

2. Applications of OR

Example:

Container Port Logistics

EURO XXV, 8-11 July 2012, Vilnius - H.J. Zimmermann, Aachen20.08.2014

2 applications of or5
2. Applications of OR

Example:

Transshipment Process from Waterside to Hinterland

EURO XXV, 8-11 July 2012, Vilnius - H.J. Zimmermann, Aachen20.08.2014

2 applications of or6
2. Applications of OR

Example:

Airport Ground Optimization

EURO XXV, 8-11 July 2012, Vilnius - H.J. Zimmermann, Aachen20.08.2014

2 applications of or7
2. Applications of OR

Example:

Airport Ground Optimization

EURO XXV, 8-11 July 2012, Vilnius - H.J. Zimmermann, Aachen20.08.2014

2 applications of or8
2. Applications of OR

IT vs. OR?

  • From lack of data to abundance of data
  • Need for additional techniques (data mining etc.)
  • Higher importance of GUI for better user friendlyness
  • Change of name ?

EURO XXV, 8-11 July 2012, Vilnius - H.J. Zimmermann, Aachen20.08.2014

2 applications of or9
2. Applications of OR

Areas of Applications and Results

  • Application Areas almost unlimited
  • Results: Hundreds of Testamonials within literature. Here some examples(from www.euro-online.org)

- Ford used O.R. to optimise the way it designs and tests vehicle prototypes, saving well over £150 million.

- British Airways used O.R. to review engineering inventory models and processes and identified £21 million-worth of surplus inventory which was disposed of.

- A hospital called in O.R. consultants to reduce outpatient waiting times. Using a simulation model, the O.R. team developed a new system that cut waiting times by as much as 50% .

- Due to continuously increasing efficiency of the three new parcel centers, Swiss Post has been able to transfer functions from two old parcel centers working without SyncroTESS to the new centers. This results in annual savings potential of about 12 million Swiss francs (about $8 million) for Swiss Post.

EURO XXV, 8-11 July 2012, Vilnius - H.J. Zimmermann, Aachen20.08.2014

3 potentials and weaknesses of or
3. Potentials and Weaknesses of OR

Considering:

  • Number of Publications
  • Number of EURO members
  • Means of communication (conferences etc.)
  • Available Tools
  • Web- and other Services

EURO is a very remarkable Success Story.

EURO XXV, 8-11 July 2012, Vilnius - H.J. Zimmermann, Aachen20.08.2014

slide23

3. Potentials and Weaknesses of OR

Challenges are still:

  • OR is not only optimization or data mining algorithms but also:- Interdisciplinary teamwork- Problem recognition- Problem Modeling- Solution selling
  • Education in OR(Hardly any programs on the continent)In 2007 in UK: $26 mill. initiativ!
  • Visibility of OR - Potentials and Success to Practioners(Problem Owners)

EURO XXV, 8-11 July 2012, Vilnius - H.J. Zimmermann, Aachen20.08.2014

thank you for your attention

Thank you for your attention!

EURO XXV, 8-11 July 2012, Vilnius

H.-J. Zimmermann, Aachen

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