Article ID: | iaor1998277 |
Country: | United States |
Volume: | 27 |
Issue: | 2 |
Start Page Number: | 17 |
End Page Number: | 36 |
Publication Date: | Mar 1997 |
Journal: | Interfaces |
Authors: | Mason Richard O., McKenney James L., Carlson Walter, Copeland Duncan |
Keywords: | computers, systems, design |
Federal Express Corporation has used operations research (OR) to help make its major business decisions since its overnight package delivery operations began in 1973. An early failure pointed out the need for scientific analysis. Subsequently, a successful origin–destination model followed by models to simulate operations, finances, engine use, personal assignments, and route structures influenced the conduct of business during periods of substantial growth. There were many false starts between the successes. CEO and founder Frederick W. Smith played a central role in the use of OR at the company: he established a relationship with OR and management science personnel and this relationship supported the growth and success of the company.