Perspectives on MS Applications—All Around the Model

Over the past several years I have perceived a trend in Operations Research/Management Science (OR/MS) groups within industrial and commercial business organizations. First came the era of the strong central organization, frequently located at the corporate level and reporting to a top corporate officer. Then gradually smaller applications groups formed within operating divisions. Finally there occurred a shrinking and in some cases disappearing of the central group as specifically designated for application of OR/MS techniques.

Two recent experiences point up what I perceive is a trend among in-house management science groups, regardless of what they are called. Each of these illustrates a somewhat different kind of corporate situation which gave rise to essentially the same conclusion: it was better to purchase outside skills and techniques than to attempt them in-house.