The Decision, Risk, and Operations Division undertakes research and instruction on decision-making through optimization, modeling, and managing uncertainty, and on all aspects of the operations function in firms.
The division's research and teaching typically involve the development and analysis of quantitative models of business problems. These models are used to support decision-making, to measure and manage risks, and to enhance understanding of business practices. Models are analyzed using tools from mathematical programming, game theory, probability, and statistics; the division is also active in advancing these underlying methodologies.
Application areas in which the division has particular expertise include logistics, distribution and supply-chain management; revenue management; resource networks and service systems; the valuation of derivative securities, and risk management.
The success of the division's mission depends, in part, on fostering collaboration with industry. For only by keeping in close contact with industrial problems can the division preserve the vitality of its research and teaching.