Operations research, also known as management science, is the use of advanced analytical methods to help make better decisions. It involves applying advanced mathematical, statistical, and analytical techniques to model complex situations and predict outcomes. Operations researchers work in a wide variety of industries including transportation, healthcare, finance, logistics, manufacturing, and more. But is it a good career choice? Here we’ll examine the pros and cons of working in operations research.
What is operations research?
Operations research aims to provide rational bases for decision making by seeking to understand and structure complex situations and problems. It uses mathematical modeling, statistical analysis, and information technology to analyze systems and processes in order to optimize efficiency and maximize desired outcomes.
Some of the major tools and techniques used in operations research include:
- Linear programming – Optimizing operations given constraints on resources
- Queuing theory – Modeling waiting lines and queues
- Simulation – Imitating the operation of real-world systems
- Forecasting – Estimating future outcomes based on past data
- Stochastic modeling – Analyzing systems with randomness and variability
- Decision analysis – Evaluating alternatives using quantitative models
- Inventory management – Optimizing inventory policies
- Mathematical optimization – Finding optimal solutions to complex problems
By leveraging these advanced analytical techniques, operations researchers are able to model and solve very complex problems for organizations. The goal is to help them improve efficiency, reduce costs, increase profits, and maximize performance.
What do operations researchers do?
Operations researchers typically work on analyzing complex systems and processes within an organization and developing quantitative models to inform decision making. Some of their key responsibilities include:
- Identifying areas for improving operational efficiency and performance
- Building mathematical models and running simulations to model different scenarios
- Performing predictive analytics using forecasting and estimation techniques
- Optimizing operations, inventory, scheduling, and other business processes
- Analyzing data to provide business insights and recommend solutions
- Collaborating with stakeholders across departments to understand needs and objectives
- Developing optimization algorithms and advanced analytics methodologies
- Writing technical reports and presenting results to management
Operations researchers apply their skills across virtually every industry. Example projects could include optimizing supply chain operations, improving healthcare delivery, analyzing financial risk, determining logistics strategies, or investigating transportation issues.
What skills are required?
Operations research requires a unique combination of math, analytics, technical, and business skills. Some key skills and qualifications include:
- Quantitative skills – Strong math background including calculus, statistics, probability, optimization, and econometrics
- Analytical skills – Ability to structurally break down problems and analyze complex systems
- Technical skills – Programming, database, and modeling skills to build simulations
- Critical thinking – Logical reasoning and cognitive skills to evaluate alternatives
- Interpersonal skills – Ability to communicate and collaborate with diverse stakeholders
- Domain knowledge – Understanding of specific industries worked in
Most positions require at least a bachelor’s degree, usually in a field like operations research, management science, mathematics, statistics, computer science, or industrial engineering. Many operations researchers also obtain a master’s degree or Ph.D in operations research or a related discipline.
What are the career prospects and salary potential?
Operations research provides excellent career prospects and earning potential, especially as organizations increasingly rely on advanced analytics. According to the Bureau of Labor Statistics (BLS), operations research analyst positions are projected to grow 25% from 2020 to 2030, much faster than the average for all occupations. It is a career with high demand and great opportunities across many sectors.
The table below outlines national salary data for operations research analysts based on BLS statistics:
Percentile | Annual Salary |
---|---|
10th percentile | $50,000 |
25th percentile | $67,000 |
50th percentile (median) | $88,000 |
75th percentile | $114,000 |
90th percentile | $146,000 |
The median salary for operations research analysts is an impressive $88,000 annually. Experienced analysts and managers can earn well into the six figures. Operations researchers working in certain industries like management consulting or financial services may earn even higher salaries.
In addition to strong pay, operations research roles often come with attractive benefits packages including health insurance, retirement plans, tuition reimbursement, and performance bonuses.
What are the pros of an operations research career?
There are many advantages to building a career in operations research:
- Interesting work – Get to tackle unique challenges and complex analytical problems every day.
- Impact – See tangible improvements and results from your analyses.
- Pay – Salaries are very competitive, especially for those with advanced degrees.
- Job growth – Projected to be a rapidly growing field over the next decade.
- Variety – Apply skills across many different industries.
- Quantitative focus – Ideal for those who enjoy quantitative analysis.
- Flexibility – Work on diverse projects and adjust focus over time.
- Transferable skills -Broad analytical toolkit applies widely.
Between the stimulating work, high pay, abundant jobs, and quantitative focus, operations research offers an outstanding career path for the right individuals. The field continues to expand into new domains, providing great versatility and applicability.
What are the cons or challenges?
Although operations research provides many rewards, there are also some potential downsides and challenges to consider:
- Advanced education – Most positions require at least a master’s degree.
- Quantitative focus – Requires very strong math and analytical abilities.
- Learning curve – Can take time to develop proficiency in tools and methods.
- Complex problems – Issues tackled are often ambiguous and multi-faceted.
- Interpersonal skills – Must collaborate effectively with diverse teams.
- Continuous learning – Field evolves quickly and requires keeping skills current.
- Uncertain impact – Results not always easy to measure or directly observe.
- Stress – Pressures to deliver insights and meet deadlines.
Operations research is certainly not for everyone given the advanced education requirements and complex technical nature of the work. Individuals must have exceptional quantitative abilities as well as communication, collaboration, and critical thinking skills. However, for the right candidate, the challenges of the job can also be highly motivating and rewarding.
Conclusion
Operations research offers stimulating work at the intersection of math, analytics, and business. With projected rapid job growth and high salaries, it is an appealing career option for those with strong quantitative and analytical capabilities looking for a rewarding field that applies advanced methodologies to drive organizational decision making and performance. Although the work can be technically complex and require advanced education, operations researchers have the opportunity to continuously grow while making substantive impacts across diverse industries.