Operational Research in Education

Operational Research (OR) techniques have been applied, from the early stages of the discipline, to a wide variety of issues in education. At the government level, these include questions of what resources should be allocated to education as a whole and how these should be divided amongst the individual sectors of education and the institutions within the sectors. Another pertinent issue concerns the efficient operation of institutions, how to measure it, and whether resource allocation can be used to incentivise efficiency savings. Local governments, as well as being concerned with issues of resource allocation, may also need to make decisions regarding, for example, the creation and location of new institutions or closure of existing ones, as well as the day-to-day logistics of getting pupils to schools. Issues of concern for managers within schools and colleges include allocating the budgets, scheduling lessons and the assignment of students to courses. This survey provides an overview of the diverse problems faced by government, managers and consumers of education, and the OR techniques which have typically been applied in an effort to improve operations and provide solutions

Credit Default Modeling: a Logit Approach

This paper aims at developing a credit scoring model that can best be used to ascertain the credit score and predict probability of default of firms seeking credit. The study subsequently aspires to find the financial ratios that can best be used to successfully construct the credit score and predict default risk. To achieve these purposes, the paper applied the logit model. Performance of the model was assessed using the percentage correctly classified (PCC) and the area under the receiver operating characteristic curve (AUC). The results show that the logit model yield very good performance rate for credit scoring and risk assessment. Further empirical evidence indicates that ratios bordering on: interest coverage, liquidity, activity, and firm size are those that can be significantly helpful in scoring credit applicants and assessing credit risk. Practically, the model can aid in reducing the time spent on evaluating credit applicants, and can give an exact default-risk intensity of each firm subjected to the model as well as serve as an early warning system. The multiplier effect will be a significant improvement in loan portfolio quality of the model user which is in accordance with the Basel II framework. Keywords: Credit default modeling, logit, Ghana

A recent review on optimisation methods applied to credit scoring models

Purpose: This paper aims to present a literature review of the most recent optimisation methods applied to Credit Scoring Models (CSMs). Design/methodology/approach: The research methodology employed technical procedures based on bibliographic and exploratory analyses. A traditional investigation was carried out using the Scopus, ScienceDirect and Web of Science databases. The papers selection and classification took place in three steps considering only studies in English language and published in electronic journals (from 2008 to 2022). The investigation led up to the selection of 46 publications (10 presenting literature reviews and 36 proposing CSMs). Findings: The findings showed that CSMs are usually formulated using Financial Analysis, Machine Learning, Statistical Techniques, Operational Research and Data Mining Algorithms. The main databases used by the researchers were banks and the University of California, Irvine. The analyses identified 48 methods used by CSMs, the main ones being: Logistic Regression (13%), Naive Bayes (10%) and Artificial Neural Networks (7%). The authors conclude that advances in credit score studies will require new hybrid approaches capable of integrating Big Data and Deep Learning algorithms into CSMs. These algorithms should have practical issues considered consider practical issues for improving the level of adaptation and performance demanded for the CSMs. Practical implications: The results of this study might provide considerable practical implications for the application of CSMs. As it was aimed to demonstrate the application of optimisation methods, it is highly considerable that legal and ethical issues should be better adapted to CSMs. It is also suggested improvement of studies focused on micro and small companies for sales in instalment plans and commercial credit through the improvement or new CSMs. Originality/value: The economic reality surrounding credit granting has made risk management a complex decision-making issue increasingly supported by CSMs. Therefore, this paper satisfies an important gap in the literature to present an analysis of recent advances in optimisation methods applied to CSMs. The main contribution of this paper consists of presenting the evolution of the state of the art and future trends in studies aimed at proposing better CSMs

The Classification Performance of Multiple Methods and Datasets: Cases from the Loan Credit Scoring Domain

Decisions to extend credit to potential customers are complex, risky and even potentially catastrophic for the credit granting institution and the broader economy as underscored by credit failures in the late 2000s. Thus, the ability to accurately assess the likelihood of default is an important issue. In this paper the authors contrast the classification accuracy of multiple computational intelligence methods using five datasets obtained from five different decision contexts in the real world. The methods considered are: logistic regression (LR), neural network (NN), radial basis function neural network (RBFNN), support vector machine (SVM), k-nearest neighbor (kNN), and decision tree (DT). The datasets have various characteristics with respect to the number of cases, the number and type of attributes, the extent of missing values as well as different ratios for bad loans/good loans. Using areas under ROC charts as well as the classification accuracy rates for overall, bad loans, and good loans the performances of six methods across five datasets and the five datasets across the methods are examined to find if there are significant differences between the methods and datasets. Our results reveal some interesting findings which may be useful to practitioners. Even though no method consistently outperformed any other method using the above metrics on all datasets, this study provides some guidelines as to the most appropriate methods suitable for each specific data set. In addition, the study finds that customer financial attributes are much more relevant than the personal, social, or employment attributes for predictive accuracy

A Framework for Prioritizing Opportunities of Improvement in the Context of Business Excellence Model in Healthcare Organization

In today\u27s world, the healthcare sector is facing challenges to improve the efficiency and effectiveness of its operations. More and more improvement projects are being adopted to enhance healthcare services, making it more patient-centric, and enabling better cost control. Healthcare organizations strive to identify and carry out such improvement initiatives to sustain their businesses and gain competitive advantage. Seeking to reach a higher operational level of excellence, healthcare organizations utilize business excellence criteria to conduct assessment and identify organizational strengths and weaknesses. However, while such assessments routinely identify numerous areas for potential improvement, it is not feasible to conduct all improvement projects simultaneously due to limitations in time, capital, and personnel, as well as conflict with other organization\u27s projects or strategic objectives. An effective prioritization and selection approach is valuable in that it can assist the organization to optimize its available resources and outcomes. This study attempts to enable such an approach by developing a framework to prioritize improvement opportunities in healthcare in the context of the business excellence model through the integration of the Fuzzy Delphi Method and Fuzzy Interface System. To carry out the evaluation process, the framework consists of two phases. The first phase utilizes Fuzzy Delphi Method to identify the most significant factors that should be considered in healthcare for electing the improvement projects. The FDM is employed to handle the subjectivity of human assessment. The research identifies potential factors for evaluating projects, then utilizes FDM to capture expertise knowledge. The first round in FDM is intended to validate the identified list of factors from experts; which includes collecting additional factors from experts that the literature might have overlooked. When an acceptable level of consensus has been reached, a second round is conducted to obtain experts\u27 and other related stakeholders\u27 opinions on the appropriate weight of each factor\u27s importance. Finally, FDM analyses eliminate or retain the criteria to produce a final list of critical factors to select improvement projects. The second phase in the framework attempts to prioritize improvement initiatives using the Hierarchical Fuzzy Interface System. The Fuzzy Interface System combines the experts\u27 ratings for each improvement opportunity with respect to the factors deemed critical to compute the priority index. In the process of calculating the priority index, the framework allows the estimation of other intermediate indices including: social, financial impact, strategical, operational feasibility, and managerial indices. These indices bring an insight into the improvement opportunities with respect to each framework\u27s dimensions. The framework allows for a reduction of the bias in the assessment by developing a knowledge based on the perspectives of multiple experts

Fuzzy Sets, Fuzzy Logic and Their Applications

The present book contains 20 articles collected from amongst the 53 total submitted manuscripts for the Special Issue “Fuzzy Sets, Fuzzy Loigic and Their Applications” of the MDPI journal Mathematics. The articles, which appear in the book in the series in which they were accepted, published in Volumes 7 (2019) and 8 (2020) of the journal, cover a wide range of topics connected to the theory and applications of fuzzy systems and their extensions and generalizations. This range includes, among others, management of the uncertainty in a fuzzy environment; fuzzy assessment methods of human-machine performance; fuzzy graphs; fuzzy topological and convergence spaces; bipolar fuzzy relations; type-2 fuzzy; and intuitionistic, interval-valued, complex, picture, and Pythagorean fuzzy sets, soft sets and algebras, etc. The applications presented are oriented to finance, fuzzy analytic hierarchy, green supply chain industries, smart health practice, and hotel selection. This wide range of topics makes the book interesting for all those working in the wider area of Fuzzy sets and systems and of fuzzy logic and for those who have the proper mathematical background who wish to become familiar with recent advances in fuzzy mathematics, which has entered to almost all sectors of human life and activity

Operational research and artificial intelligence methods in banking

Supplementary materials are available online at https://www.sciencedirect.com/science/article/pii/S037722172200337X?via%3Dihub#sec0031 .Copyright © 2022 The Authors. Banking is a popular topic for empirical and methodological research that applies operational research (OR) and artificial intelligence (AI) methods. This article provides a comprehensive and structured bibliographic survey of OR- and AI-based research devoted to the banking industry over the last decade. The article reviews the main topics of this research, including bank efficiency, risk assessment, bank performance, mergers and acquisitions, banking regulation, customer-related studies, and fintech in the banking industry. The survey results provide comprehensive insights into the contributions of OR and AI methods to banking. Finally, we propose several research directions for future studies that include emerging topics and methods based on the survey results

Intelligent energy management system in buildings

Energy management systems have become one of the most significant concepts in the power energy area, due to the dependency of nowadays human’s lifestyle on electrical appliances and increment of energy demand during the past decades. From a general perspective, the total energy consumption by humans can be divided into three main economic sectors, namely industry, transportation, and buildings. Based on recent studies, the buildings present the largest share of consumption, standing for approximately 40% of the total consumption. This fact makes buildings energy management the most important component of energy management. On another hand, according to the variety of different types of buildings and several existing consumption appliances, the management of energy consumption in the building becomes a challenging problem. The main goal of a building energy management system is to control the energy consumption of the building by considering several facts, such as current and estimated consumption and generation, the energy price and comfort of the users. Due to the complexity of this management and limitations of available information, most of the existing systems focus on optimizing the consumption value and the cost of the energy with less consideration of the comforts and habits of the users. Moreover, the context of decision-making is also not sufficiently explored. However, the energy management in the building can be designed based on an intelligent system which has the knowledge to estimate the comforts and needs of the users and acts based on this awareness. This work studies and develops an intelligent energy management system for buildings energy consumption. This system receives the historical data of the building and uses a set of artificial intelligence techniques as well as several designed rulesets and acts as a recommender system. The goal of the generated recommendations by this system is to attune the usage of the electrical appliances of the building by comforts and habits of the residents while considering the price of the electricity market and the current context. Results show that the system enables users to obtain a comfortable environment in the building in the most affordable way.Nas últimas décadas, a dependência do estilo de vida na elevada utilização de dispositivos elétricos e grande consumo energético, faz com que os sistemas de gestão de energia sejam um dos conceitos mais relevantes no setor energético. Numa perspetiva geral, o total da energia consumida divide-se essencialmente em três setores económicos: industrial, transporte e edifícios. Os edifícios têm a maior representatividade, correspondendo aproximadamente a 40% do consumo total. Assim, a gestão energética em edifícios é a componente com maior importância nesta área. Por outro lado, devido à variedade dos diferentes tipos de edifícios e dispositivos de consumo, a gestão do consumo de energia nos edifícios apresenta desafios. O objetivo principal de um sistema de gestão energética em edifícios consiste em controlar o consumo energético no edifício, considerando diversos fatores, tais como o consumo e produção atuais, a sua estimativa, o preço de mercado e conforto dos seus utilizadores. Perante a complexidade desta gestão e das limitações da informação disponível, a maioria dos sistemas tem foco na otimização do consumo e os seus custos, tendo em menor consideração o conforto e hábito dos utilizadores. Além disso, o contexto da tomada de decisão não é devidamente explorado, enquanto a gestão energética em edifícios pode ser baseada num sistema inteligente, cujo conhecimento pode estimar o conforto e necessidades dos seus utilizadores, e assim atuar com base nessa consciência. Este trabalho estuda e desenvolve um sistema inteligente para a gestão do consumo de energia em edifícios. O sistema recebe o histórico de dados de um edifício, e utiliza um conjunto de técnicas de inteligência artificial e conjuntos de regras, funcionando como um sistema de recomendações. O objetivo das recomendações geradas pelo sistema é adaptar os dispositivos elétricos do edifício ao conforto e hábitos dos utilizadores enquanto são considerados o preço de mercado e o contexto atual. Os resultados demonstram que o sistema permite aos utilizadores obter um ambiente confortável no edifício, da forma mais económica possível