Optimization Solutions by Industry
Airlines and Trucking
- Crew Scheduling: Given a flight schedule, aircraft assignments, and restrictions on duty periods, allocate crews most effectively to flights
- Fleet Routing and Assignment: Determine which aircraft to fly on each route, and the sequence of segments flown by each aircraft
- Revenue Management: For different classes of tickets, determine how many seats to sell or hold back as flight date approaches
Oil and Gas
- Gasoline Blending: From hydrocarbons with specific octane ratings, vapor pressure, volatility and cost, determine how much of each should be blended together to produce regular, midgrade, and premium gasoline
- Gas Contract Purchase: With forecasted but uncertain demand for gas, determine which contracts to buy, and how much gas to store at different times
- Pipeline Capacity Auction: Determine which bids, at different prices, should be awarded to maximize sales revenue while not exceeding daily pipeline capacity
Lumber, Paper and Steel
- Cutting Stock Problems: Given large wood / paper sheets or steel slabs / bars, and demand for units of smaller lengths/widths, determine the cutting pattern of large into small pieces that meets demand while minimizing waste
Agriculture
- Crop Planning: Given forecasted crop prices and growing conditions, determine how much of each crop to plant
- Feed Blending: Given the nutritional requirements for feed animals and the price of available feeds, find the blend of feed ingredients that will minimize total cost
Electric Power
- Generator Commitment: Given forecasted demand by period and operating cost for each generator, determine which generators should be run in each time interval
- Electricity Trading: Maximize the value of electricity sales in an ongoing auction environment
Financial Services
- Efficient Portfolios: Given forecasts of stock, bond or asset class returns, variances and covariances, allocate funds to investments to minimize portfolio risk for a given rate of return
- Index Fund Management: Solve a portfolio optimization problem that minimizes "tracking error" for a fund mirroring an index composed of thousands of securities
- Asset/Liability Management: Allocate funds to various investments to maximize portfolio return while ensuring that periodic liabilities are fully funded