First an idea is given of the basic ideas underlying the new branch of
science, Operations Research, and of the causes underlying its recent
very rapid development. Then the main problems involved are introduced
and classified according to the method of solution, and not, as would
also be possible, according to the field of application. The most
important of the methods is that of programming, by which one
understands in this connection the maximization (or minimization) of a
preference function of usually numerous variables, under usually
numerous restraints, mostly in the form of inequalities. If the
preference function and restraints are linear, then one speaks of linear
programming, for which there exists a convenient solution process, G. B.
Dantzig's Simplex Method. Should the preference function be quadratic
and convex, while the restraints remain linear, then the solution
process becomes more complicated. Recently, however, numerous methods
have also been worked out for these conditions (Barankin and Dorfman,
Wolfe, Frank and Wolfe, Beale, Hildreth, Rosen, Frisch and others). As
yet unsolved remains the problem of non-linear restraints and non-convex
preference functions. Inspite of considerable achievements (in
particular those of Bellman), dynamic programming is still in a primary
stage of development. Dynamic programming is concerned with problems in
which the decision in one period alters the basis of the problem in the
next period. Similarly in parametric programming the dependence of the
solution on a parameter of the problem is examined.