Decision optimization is a branch of mathematics that deals with maximizing the output from a large number of input variables that exert their relative influence on the output. It is widely used in economics, game theory, and operations research with some application in mechanics and engineering. [1]

Decision optimization is the process of using mathematical models and algorithms to identify the best course of action in complex decision-making scenarios. It is used in industries such as transportation, logistics, and manufacturing to optimize resource allocation and improve operational efficiency.

Figure 1. Decision Optimization

Decision Optimization is shown in figure 1. That good organizational decisions are rooted in data is not news anymore. Given the rise of the data economy, we are all aware of how data-driven decision making helps the organization improve the bottom line. With this, we have seen the meteoric rise of the importance of data science teams. We are also witnessing the growing use of technologies such as AI and Machine Learning to improve decision-making and implementation tracking.

Advantages of decision optimization

By using decision optimization technology organizations can:

• Develop and monitor enterprise planning and execution decisions and view key performance indicators across different business aspects
• Evaluate the strength of forward-looking business decisions and understand the potential financial outcomes by leveraging scenario analysis
• Improve the time-to-value of packaged applications and capably tailor solutions to meet the needs of specific business processes and models
• Generate competitive advantage by transforming analytics insights into planning and scheduling processes, and logistics and asset utilization decisions. [2]

decision optimization is a powerful technique that can help organizations make better decisions, save time and money, and improve operational efficiency. As the volume of data and complexity of decision-making scenarios continues to increase, decision optimization is likely to become an increasingly important tool for organizations across a wide range of industries.

References:

1. https://www.sciencedirect.com/topics/computer-science/optimization-decision
2. https://veracitiz.com/blog/decision-optimization-helping-organisations-in-uncertain-times/

Cite this article:

Gokula Nandhini K (2023), Decision Optimization, Anatechmaz, pp.65