Business Studies Paper

Franz Edelman Paper Review

Contents

1: What is your opinion of the value of the article with respect to the business community? Why?. 1

2: What is your opinion of its value with respect to this course?. 2

3: Provide a Three-page summary of the article. 3

Works Cited. 6

1: What is your opinion of the value of the article with respect to the business community? Why?

The article is useful to the business community because it addresses two important issues (operation research and management science) that are essential to the success of every enterprise. Businesspeople can learn many lessons based on the research work published in the article entitled, “2003 Franz Edelman Award for Achievement in Operations Research and the Management Sciences” (Graves 1).

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Firstly, the award-winning Canadian Pacific Railway developed a decision support system that was targeted at creating a scheduled railway. This system helped the company to formulate an integrated operating plan that would accommodate 7,000 daily shipments by using 65,000 railcars to over 20,000 paired destinations (Graves 3). This system allowed it to make good use of its resources such as the human capital, locomotives, and rail yards. Business enterprises can use this approach to cut down on their operating costs.  Additionally, many companies in the package delivery industry have problems on how to design routes for aircraft and thereafter assign fleets evenly to achieve reliable and efficient plans for routine shipments. In collaboration with MIT, the UPS created an optimization-based planning system that enables aircraft managers to manage their delivery plans 24 hours in advance (Graves 3). Other companies operating in the package delivery industry can use this system to prepare for their package deliveries in advance.

Moreover, the supply chain management system of an organization contributes significantly either to its success or its failure. An inefficient supply chain management system always leads to increased distributional costs that lead to arise in prices of goods and commodities. However, Hewlett-Packard Company designed software that would model the company’s supply chains (Graves 4). This tool addresses several possibilities of failures that can be realized in the supply chain failure and improves the efficiency of the entire supply chain process. Business operators whose target is to increase the efficiency of their supply chains can adopt this system since it cuts down on commodity costs.

2: What is your opinion of its value with respect to this course?

The article has adhered to the threshold addressed in the quantitative methods course. Each of the six operations research and management science systems that were designed and tested by the six finalists has some measurable aspects. In quantitative methods, the impact of change realized from the adoption of any particular process or system should always be measurable. Firstly, the Canadian Pacific Railway was able to cut down on its operational costs by $500 million by using the decision support system for scheduling railway (Graves 2). These costs were accumulated over a period of 5 years starting from the year the company began to use the rail decision support system.

Furthermore, the adoption of an optimization system that can be used for integrating the company’s trucking operations and routing the aircraft delivery service by the Menlo Worldwide Forwarding helped the company to increase its operating margins by 40 percent and decrease its operating costs by 21 percent in the fiscal year ended 2002 (Graves 3). Additionally, the company was able to cut down on its total operating costs by $ 80million in the same financial year. Moreover, the quantitative method approach has also been factored in the adoption of the package delivery system that was developed by UPS. The use of this system helped the company to cut down on the company’s costs by $100 million..

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Besides, the adoption of an upgraded supply chain management system by the Hewlett-Packard Company enabled the company to reduce its costs enormously. For example, the Company saved a total of $130 million following the adoption of that system by its management (Graves 4). Likewise, the adoption of the management science approaches and models by the Texas Children’s Hospital in partnership with the PROS Revenue Management helped the hospital to reduce incidences of risk by 25 percent in addition to increasing its revenue collection by $ 17 million. (Graves 4).

Lastly, the Bank Hapoalim B.M. of Israel also adhered to the quantitative method approach in the adoption of the Opti-Money, a decision support system that helps its relationship managers to advise individual customers on financial investment. For example, the bank used the system to serve 63,000 customers on 133,000 occasions in the financial year ended in 2002 (Graves 4). However, by the second month of the subsequent year, all the company’s customer relations managers were using the Opti-Money system.

3: Provide a Three-page summary of the article

The article entitled “2003 Franz Edelman Award for Achievement in Operations Research and the Management Sciences” was published by Interfaces (Graves 1). It presents the six finalists and winners of the prestigious 32nd Annual competition for the Franz Edelman Award that is focused on recognizing the achievements made in both Operations Research and the Management Sciences profession. As the chairperson, Thomas Spencer III oversaw this annual event, while Stephen C. Graves edited the article. These annual competitions are jointly sponsored by CPMS and INFORMS (Graves 1). The rewards are presented to individuals or organizations that have depicted proof of significant developments in the Operations Research and Management Science. These systems must meet the verifiability and quantitative thresholds. A panel of highly experienced coaches, verifiers, and judges are always tasked with the responsibility of testing the above named two absolute limits.

Similarly, six best contributors to the Operations Research and Management Science profession were selected for the 32nd Annual Franz Edelman Award. Their systems were subjected to similar scrutiny with the first project being awarded $10,000 and a sum of $500 going to each of the six authors (Graves 2). Additionally, all the works of the six finalists were published in the prestigious Interfaces Journal. The six best projects are discussed below.

To begin with, the Canadian Pacific Railway that designed a decision support system that can schedule a railway grabbed the first slot. This system helps rail companies to manage all its resources efficiently. The system works towards minimizing the company’s costs and increasing its efficiency. It helped the company to maximize the output of all its resources such as human capital, locomotives, railcars, and rail yards. The Canadian Pacific Railway in partnership with the MultiModal Applied Systems developed an integrated operating system that would lead to increased efficiency in the use of resources of the company (Graves 3).

The UPS Corporation that collaborated with MIT won the second slot for designing an optimization-based planning system that would help players in the package delivery industry to plan for deliveries 24 hours before actual deliveries are made (Graves 3). It would ensure efficiency with regards to both reduced time wastage and increased volume of goods handled. Further, the Opti-Money decision support system was developed with the aim of helping the bank managers to advise their client’s financial, investment, and asset management matters. This system was adopted by the largest Israeli bank, Bank Hapoalim B.M., and received a high level of reception in the banking industry.

Besides, the Texas Children’s Hospital collaborated with the PROS Revenue Management to formulate management science approaches and models that would address the two greatest shortcomings in the healthcare industry: risk reduction and poor revenue collection. This system was helpful in decreasing risk-related cases by 25 percent and increasing the organization’s revenue by $17 million (Graves 4).

The Menlo Worldwide Forwarding Corporation that deals in heavyweight airfreight made another notable contribution to the Operations Research and Management Science profession (Graves 4). It designed an optimization system that tracks its operations and checks all aircraft deliveries by using technology. Lastly, the design of a more integrated supply chain management system by Hewlett-Packard helped it to cut down on its operating costs such as the distribution and storage significantly. Additionally, it also helped the company to increase its sales margins by reducing the prices of its commodities, thereby attracting more customers.

Works Cited

Graves, Stephen.“2003 Franz Edelman Award for Achievement in Operations Research and the Management Sciences.” INFORMS, 34.1 (2004): 1- 4. Print.

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