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Operations research analysts are business professionals who use math and statistics to analyze the day-to-day operations of businesses. They work closely with managers to ensure that businesses operate efficiently, basing their advice on statistical models, such as the Monte Carlo simulation, which accurately models future courses of action when there are many uncertain factors, a common problem in business. Their main responsibility is analyzing business statistics, but they also spend time conducting worker surveys, writing reports and presenting data in meetings.
These analysts have a hand in all areas of a business’s organization, giving the last say on matters of purchasing, scheduling, setting prices and setting up a supply chain. They can work in any type of business, from a grocery store chain to a multinational corporation, advising decision-makers on how to organize a store layout or distribute products as efficiently as possible. Their tools are the kinds of statistical tests included with Microsoft Excel, such as ANOVA and t-test functions, and they must understand the subtleties of when to choose a particular function over another.
The Duties of an Operations Research Analyst
Analyzing and solving problems is only part of what these analysts do. Before they can advise businesses on a course of action, they must identify and understand the problems they face. They collect information from different sources, depending on where they believe a problem to lie. For example, they may interview employees, review the performance of past years or possibly find problems outside a business’s control. Operations research analysts working for an airline may need to gather data from the various cities a flight visits to understand fuel costs and ticket pricing.
When all information has been collected and sorted into proper sets of data, the analysts can enter it into statistical or database applications so that they can begin to understand what it means. Even though some patterns may seem to stand out during the collection of data, analysts don’t really know what it means until they perform statistical tests on it. For example, the costs of flying to three different cities may seem different at first glance, but after performing a one-way ANOVA test on the sample sets, an analyst may see that the costs are really the same. A one-way ANOVA tests variance, which can cause some sample sets to seem different by chance.
How to Become an Operations Research Analyst
Usually, a master’s degree in a strongly quantitative field, such as engineering, math or computer science, is required. These analysts do a very important job, and most businesses only hire candidates with advanced degrees, although some entry-level positions are available for those with only a four-year degree.
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Because most colleges don’t offer degrees specifically in operations research, a related degree is sufficient. The most important requirement is that students have a firm mastery of statistics, calculus and linear algebra, as well as a good grasp of computer science. Many of an analyst’s duties require the ability to program math and statistical software, such as MATLAB. The median annual salary for operations research analysts in 2012 was $72,100, with jobs expected to increase an incredible 27 percent over the next ten years.
Businesses can’t survive without knowing exactly how many resources to allocate for various operations, and they need workers who do nothing but think about these issues every day. If you have a passion for math and statistics, consider becoming an operations research analyst.
