Optimizing resources with Linear Programming

Real cases of using Operations Research

Like every scientific advance, the beginnings of operations research applications were military targets. But seeing the benefits soon became practiced in other fields such as industry, transport, urban development, trade, finance, health, etc.. to optimize the available resources and benefits, primarily economic.

The following table shows some examples of actual use of Operations Research by different organizations and profits and / or savings achieved as a result.

Organization Application Year Yearly savings
Dutch Ministry of Infrastructure and the Environment (Netherlands Rijkswaterstaat) National Water management policy development, adding new facilities, operating and costs procedures 1985 $15 millions
Monsanto Corp. Production's operations optimization to obey goals with a minimum cost 1985 $2 millions
Weyerhaeuser Co. Cutting trees optimization to maximize wood products production 1986 $15 millions
Electrobras/CEPAL Brasil Optimal allocation of hydraulic and thermic resources in the national energy generation system 1986 $43 millions
United Airlines Shifts at book offices and airports scheduling to accomplish with the customer needs at minimal cost 1986 $6 millions
CITGO Petroleum Corp. Optimization of refinement, offer, distribution and commercialization of products operations 1987 $70 millions
Santos, Ltd., Australia Capital investment optimizing to produce natural gas along 25 years in Australia 1987 $3 millions
Electric Power Research Institute Administration of oil and coal inventories for the electric service with the intention of balancing inventory costs and risks of remaining 1989 $59 millions
San Francisco Police Department Optimization programming and assignment of Patrol's officers with a computed system 1989 $11 millions
Texaco Inc. Optimizing the mixing of ingredients available in order to obtain fuels which met with the quality requirements and sales 1989 $30 millions
IBM Integration of a national network of spare parts inventory to improve support service 1990 $20 millions + $250 millions in minor inventory
U.S. Military Airlift Command Rapidity in the airplanes, crew, load and passengers coordination to drive the evacuation by air in the "Desert Storm" project in the Middle Orient 1992 Victory
American Airlines Design of a pricing, overbooking and flight coordination structure system to enhance benefits 1992 $500 millions of additional revenue
Yellow Freight System, Inc. Optimizing the design of the national transport network and the scheduling of shipping routes in the U.S. 1992 $17.3 millions
New Haven Health Dept. Design of an effective program of needles change to combat the AIDS contagion 1993 33% less of contagions
AT&T Development of a computer system to design call centers to guide customers 1993 $750 millions
Delta Airlines Maximizing profits from the allocation of aircraft types in 2.500 national flights in the U.S. 1994 $100 millions
Digital Equipment Corp. Restructuring of the whole supply chain among suppliers, plants, distribution centers, potential sites and market areas 1995 $800 millions
China Selection and optimum programming of mass projects to obey with future energy needs of the country 1995 $425 millions
South African National Defence Force (SANDF) Optimal restructuring of the size and form of the South African National Defence Force and his weapons system 1997 $1.100 millions
Procter & Gamble Redesign of the North American production and distribution system to reduce costs and to improve the incoming rapidity to the market 1997 $200 millions
Taco Bell Optimum employees programming to provide the service to desired clients with a minimum cost 1998 $13 millions
Hewlett-Packard Redesign of security inventories' size and location at printer production line to obey the production goals 1998 $280 millions of additional revenue


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Copyright ©2006-2014. All rights reserved.

Developed by:
Daniel Izquierdo Granja
Juan José Ruiz Ruiz

English translation by:
Luciano Miguel Tobaria

French translation by:
Ester Rute Ruiz