Assignment # 10 (1)

Article Reference:
E. Downey Brill, The Use of Optimization Models in Public Sector Planning, May 1979, Management Science

Summary:
The paper discusses about how solutions obtained from optimization model for the public sector problems are not very useful as there is a multitude of local optima and as these models do not formulate essential planning elements. Because of this omitted planning elements the solutions may actually lie in the inferior region than along the non-inferior frontier. Many of the early public sector optimization models concentrated majorly on the economic efficiency objective. Two of the difficulties in these models were that they failed considering equity and empirical shortcomings in estimation of benefits and costs. The author’s mention that even by using multi objective model which is used to capture all the issues pertaining to the problem, it would be impractical to generate complete set of trade off relationships.

Author quotes the recommendation made by Liebman that these optimization models should not be used to resolve the wicked problems instead they should be used to provide understanding and insight of the problem which supplements the decision makers. As explained by Liebman if we consider these components in out planning process than our models needs to be formulated differently and using different computer codes to met the requirements. The paper explains the methods of using the optimization model in combination with other models to include the elements of conventional planning and generating alternative solutions which could be used in the planning process. Authors explain about how the optimization could be used to generate alternative solutions and assisting in evaluating the solutions. To enhance these optimization models to aid creative planning process, the generated solutions should meet the minimum required and the solutions should be different. With the help of these alternative solutions the planners are able to gain better understanding of the objective, constraints and relationships of the problem. These generations of alternative solutions acts as catalyst for human creativity and inventions in making new solutions.

Discussion:
This paper is an extension of Liebman’s article who explained about many public sector problems to be wicked problems and these problems could be tackled by understanding, insight and intuitive of the problem. The solutions obtained by the optimization model are usually not very helpful as these do not consider the vital factors which are involved in the planning process, thereby making those solutions infeasible. This paper extends this discussion based on the usage of optimization models and how these models could incorporate all the omitted components of the planning process to land up at practically feasible solutions. I feel the approach of generating alternative solutions is more a practical approach as many models decisions are majorly dependent on the factors which might not be formulated mathematically. With these alternative solutions it would be an aid for the planner to come up with better practical solutions.