There are two common approaches to harnessing optimization into a decision making process in a modern organization: Black Box and Human-In-the-Loop.
By Human-in-the-Loop, we mean that the ultimate decision will be made by a person using the optimization as a tool. The complexities of this approach include:
- How to show not just what but why an optimization model is recommending a certain action,
- Especially when the user is non-technical (i.e., does not understand optimization)
- How to allow the user to easily audit input data and provide appropriate ways to fix data errors for better results
- How to allow the user to interact more with the optimization model – ideally providing ranked choices rather than a single recommendation.
Examples of Human-in-the Loop Optimization are:
- Providing optimization-based answers to senior executives setting company strategy for the service network company
- Shipping customers using the freight railroad's optimization system to route and purchase freight transportation
- Providing the airline's planners and traffic controllers with optimized alternatives they can use to integrate with non-computerized data (such as conversations with the cockpit).