Markov-process models are useful in studying the evolution of certain systems over repeated trials. For example, Markov processes have been used to describe the probability that a machine, functioning in one period, will function or break down in some future period.
Methods Used Most Frequently We believe barriers to the use of quantitative methods can best be removed by increasing the manager’s understanding of how quantitative analysis can be applied.
Forecasting Forecasting methods are techniques that can be used to predict future aspects of a business operation.
Suppose you schedule a vacation to Florida and use the Orbitz website to book your flights. An algorithm de- veloped by operations researchers will search among millions of options to find the cheapest fare. Another al- gorithm will schedule the flight crews and aircraft used by the airline. If you rent a car in Florida, the price you pay for the car is determined by a mathematical model that seeks to maximize revenue for the car rental firm.