Mathematical optimization

Mathematical optimization provides a way of solving complex problems using data and advanced algorithms. As with other artificial intelligence solutions, mathematical optimization is becoming increasingly important to competitiveness as companies’ ability to harness data grows exponentially.

When used for business planning, mathematical optimization also provides extensive reporting on performance metrics, cost structure and employee calendars. At the same time, it makes it easier to compare scenarios and reporting plans. As a result, people gain better insight into business and the transparency of the planning process increases. Use cases for mathematical optimization include resource allocation, scheduling, and route planning.

Of course, mathematical optimization alone is no ticket to dreamland. While it can identify the best solution based on the input data, it does not make the planner obsolete. The planner is still the best expert to make the final decisions based on the suggestions made by the algorithms.

3 benefits our clients have realized after applying mathematical optimization to their business planning process

• They can solve complex problems in which a human expert and conventional tools would struggle
• They can find the optimal solution dramatically faster, reducing planning time
• They can compare scenarios of different plans faster. As a result, people gain better insight into business

Mathematical Optimization in a Nutshell

Mathematical Optimization uses special algorithms to find the best course of action. These algorithms can handle large datasets with thousands of variables, making tasks that would be impossible for humans, effortless.

Mathematical Optimization can be used when making plans that include:

• Objectives: One or more meters to maximize or minimize, such as minimize overtime.
• Decision variables: Decisions that the plan should make, such as who works which shifts
• Constrains: Requirements for the plan, such as work time can’t be too high or too low

We build business planning and optimization solutions for our clients using technologies such as IBM Planning Analytics and IBM Decision Optimization.

Are you intrigued by the prospect of using mathematical optimization to improve your organization’s decision-making capabilities? Contact us today to begin your journey to smarter, faster, and more informed business decisions.