Real Time

The optimization must give split-second responses.

By Real Time, we mean the requirement that the optimizer must re-solve as data constantly change, and provide split-second responses to requests for recommendations.

The complexities of this requirement are largely technical. Designing data structures and algorithms that can give high quality answers very quickly, especially when paired with other complexity factors such as Big Data or Noisy Data, is one of the hallmarks of a state-of-the-art optimization practice.

  • As ground and air conditions change during any business day, real-time optimization allows the airline to constantly reevaluate the highest service/lowest cost assignments of pilots and planes to customer, resulting in many millions of dollars of savings.
  • Advertisers and salespeople request advertising buys for the business publication, which uses real-time optimization to reconfigure the paper and other ads on the fly to provide the best possible exposure, resulting in higher placement rates.
  • The high frequency hedge fund uses real-time optimization to track market conditions to provide the highest risk-return.
  • For the biotech manufacturer, the scheduling optimization model is used “real-time” in the simulation so it does not limit the solution's useability.