Operations research in consumer finance: challenges for operational research

Consumer finance has become one of the most important areas of banking both because of the amount of money being lent and the impact of such credit on the global economy and the realisation that the credit crunch of 2008 was partly due to incorrect modelling of the risks in such lending. This paper reviews the development of credit scoring,-the way of assessing risk in consumer finance- and what is meant by a credit score. It then outlines ten challenges for Operational Research to support modelling in consumer finance. Some of these are to developing more robust risk assessment systems while others are to expand the use of such modelling to deal with the current objectives of lenders and the new decisions they have to make in consumer financ

Consumer finance: challenges for operational research

Consumer finance has become one of the most important areas of banking, both because of the amount of money being lent and the impact of such credit on global economy and the realisation that the credit crunch of 2008 was partly due to incorrect modelling of the risks in such lending. This paper reviews the development of credit scoring—the way of assessing risk in consumer finance—and what is meant by a credit score. It then outlines 10 challenges for Operational Research to support modelling in consumer finance. Some of these involve developing more robust risk assessment systems, whereas others are to expand the use of such modelling to deal with the current objectives of lenders and the new decisions they have to make in consumer finance. <br/

What is Community Operational Research?

Community Operational Research (Community OR) has been an explicit sub-domain of OR for more than 30 years. In this paper, we tackle the controversial issue of how it can be differentiated from other forms of OR. While it has been persuasively argued that Community OR cannot be defined by its clients, practitioners or methods, we argue that the common concern of all Community OR practice is the meaningful engagement of communities, whatever form that may take – and the legitimacy of different forms of engagement may be open to debate. We then move on to discuss four other controversies that have implications for the future development of Community OR and its relationship with its parent discipline: the desire for Community OR to be more explicitly political; claims that it should be grounded in the theory, methodology and practice of systems thinking; the similarities and differences between the UK and US traditions; and the extent to which Community OR offers an enhanced understanding of practice that could be useful to OR more generally. Our positions on these controversies all follow from our identification of ‘meaningful engagement’ as a central feature of Community OR

MATHEMATIC MODELING AND ITS ROLE IN OPERATIONAL RESEARCH

Relation between mathematics and economic activity has a dual character: mathematics feed from economic and social environment through different kinds while economic sciences, including leading science, are mathematized in a fast rhythm. Under the conditions of the dynamic of contemporary economic life, is impossible to have the decisions adopted only by the means of intuition and usual judgment. For this, an important aid is given by mathematic-statistic methods, that is, operational research. Grace of operational research, the usual reasoning, which is always more or less empiric and intuitive, is filled with mathematic reasoning, rigorous, exact. For have an overview over the object of operational research applied in economy, we consider to shortly study in this work, how appeared and developed management and leading branches and also the links between these branches. We also try to put in evidence the role of mathematical modeling in operational research.modeling, operational research, cybernetic, informatics, system analysis

Operational research in low-income countries: what, why, and how?

Operational research is increasingly being discussed at institutional meetings, donor forums, and scientific conferences, but limited published information exists on its role from a disease-control and programme perspective. We suggest a definition of operational research, clarify its relevance to infectious-disease control programmes, and describe some of the enabling factors and challenges for its integration into programme settings. Particularly in areas where the disease burden is high and resources and time are limited, investment in operational research and promotion of a culture of inquiry are needed so that health care can become more efficient. Thus, research capacity needs to be developed, specific resources allocated, and different stakeholders (academic institutions, national programme managers, and non-governmental organisations) brought together in promoting operational research

ANALYZING OPERATIONAL AND FINANCIAL PERFORMANCE ON THE FINANCIAL TECHNOLOGY (FINTECH) FIRM (Case Study on Samsung Pay)

This study aims to analyze the operational and financial performance of Samsung Pay at United States in the year of 2015. Operational performances consist of availability, security, and effectiveness and usability of Samsung Pay. Financial performances consist of profitability, inventory turnover, percentage of sold phone which acceptable to use Samsung Pay in US to all sold phone of Samsung in the year of 2015, and the percentage of sold phone which acceptable to use Samsung Pay in US to US Samsung Pay users in 2015. The theory used in this research is Corporate Performance Evaluation Theory. Methods of data collection used in this research is literature study with secondary data in the form of Annual Financial Statement of Samsung Electronics, Co., Ltd and the Subsidiaries in the Year of 2015. Descriptive qualitative method is used to analyze the research data. The result of the research found that the value of operational and financial performances of Samsung Pay is 3,1 of 4. So it can be said that the performance of financial and operational in Samsung Pay is great. Limitations of this research is no explanation about the revenue and job of the Samsung Pay‟s users at US, this research was not involved inside Samsung Pay but done by document analysis, as well as a minimum of information or data about Samsung Pay. The next research are expected to use the other data with the different set of research object and region, as well as to add the other performance indicators other than financial and operational

Some Personal Recollections of Army Operations Research on Radar in World War II

Operational Research had its origin at the beginning of the Second World War, and made important early contributions to many aspects of the Air Defence of Great Britain, an activity of monumental significance in the war. Air defence depended for its success on the development of a command, control, communication and information system on a scale that had never been approached before. It also depended on other types of technology, such as high performance aircraft, air-to-air weapons and anti-aircraft artillery, and, most critically, on the new science of radar. All of these offered opportunities for applications of operational research, as did the study of tactics for individual engagements and of strategy for the optimum allocation of dangerously scarce resources. Of the many technological developments that made advances throughout the course of World War II, radar was the one which saw the greatest improvement in capabilities and had the most significant influence on operations. The contributions of radar to fire control of weapons, and the direction and navigation of aircraft and ships, called for systematic studies of the technical design and performance of the radar, of the weapons depending on its information, of the capabilities of the human operators, and of the design and effectiveness of the entire system of which the radar was one vital part. This provided a glorious opportunity for operational research. There was an atmosphere of extreme urgency. There were no worries about budgets. There was no time for extensive instrumented field trials or operational evaluation-new equipment was rushed into service. The data on effectiveness under field conditions was obtained from real operations. In earlier years it was possible to find people who held senior positions in organizations conducting important military operations, and could therefore give a first hand account of the critical decisions and results as seen “top down” from the highest level. But if one wants to go back as far as World War II, where operational research was born, it is getting increasingly difficult to find survivors who held senior appointments in the early 1940s. I am not one of these. However, I was fortunate enough to have been able to participate in operational research during World War II at a junior level, and to have spent most of the half century since then in the study and practice of military OR. I am going to describe a few incidents which occurred in the life of a junior army officer engaged in military operational research on the applications of radar to air defence, during an extremely active period. So what you are going to receive is a bottom up worm’s eye view of operational research during its interesting pioneer period fifty years ago

To investigate operations efficiency at ShineOn Car Wash and Grooming Specialist and its impact on service quality

The aim of this research project is to investigate the operational efficiency at Shine On Car Wash & Grooming Specialists and its impact on customer satisfaction and service quality. At the beginning of the study, background of Shine On is discussed to gain a greater knowledge regarding the company and its operations. Further, a PEST analysis is conducted for identifying factors affecting the business activities of the firm. Besides external environmental assessment, an analysis of its internal environment is also carried out through SWOT analysis, so that the strengths, weakness, opportunities and threats for the firm can be identified. Then an inclusive review of the literature is conducted that includes the concept and theory of operational efficiency, service quality and customer satisfaction (Expectation and disconfirmation theory). The Kano model is also analysed. Background of the research and methods to be used in the research are also mentioned. Primary data collected by using qualitative methods involved interviewing the manager and staff members. The proposed cost and ethical considerations (storage and use of data, withdrawal and confidentiality) are also discussed along with research limitations (lack of time and experience) and a timeline for the entire research. Results of the research: Operational efficiency was low due to the small size of the workplace. Service quality was low due to shortage of staff, and extra workloads. On a few occasions, shortage of chemicals was the reason behind low customer satisfaction. To conclude, operational efficiency is associated with customer satisfaction and service quality. Operational efficiency is directly proportional to the service quality and customer satisfaction. The main recommendation is, The Shine On Car Wash and Grooming Specialists should assess operational efficiency regularly