Applied Machine Learning in Operations Management

34 Pages Posted: 2 Dec 2020 Last revised: 2 Jan 2021

See all articles by Hamsa Bastani

Hamsa Bastani

University of Pennsylvania - The Wharton School

Dennis Zhang

Washington University in St. Louis - John M. Olin Business School

Heng Zhang

Supply Chain Management Department - W.P.Carey School of Business

Date Written: November 24, 2020

Abstract

The field of operations management has witnessed a fast-growing trend of data analytics in recent years. In particular, spurred by the increasing availability of data and methodological advancement in machine learning, a large body of recent literature in this field takes advantage of machine learning techniques for analyzing how firms should operate. We review applications of different machine learning methods, including supervised learning, unsupervised learning, and reinforcement learning, in various areas of operations management. We highlight how both supervised and unsupervised learning shape operations management research in both descriptive and prescriptive analyses. We also emphasize how different variants of reinforcement learning are applied in diverse operational decision problems. We then identify several exciting future directions at the intersection of machine learning and operations management.

Keywords: Machine Learning, Supervised Learning, Unsupervised Learning, Reinforcement Learning, Operations Management, Data Analytics, Healthcare, Revenue Management, Supply Chain Management

Suggested Citation

Bastani, Hamsa and Zhang, Dennis and Zhang, Heng, Applied Machine Learning in Operations Management (November 24, 2020). Available at SSRN: https://ssrn.com/abstract=3736466 or http://dx.doi.org/10.2139/ssrn.3736466

Hamsa Bastani

University of Pennsylvania - The Wharton School ( email )

3641 Locust Walk
Philadelphia, PA 19104-6365
United States

Dennis Zhang

Washington University in St. Louis - John M. Olin Business School ( email )

One Brookings Drive
Campus Box 1133
St. Louis, MO 63130-4899
United States

Heng Zhang (Contact Author)

Supply Chain Management Department - W.P.Carey School of Business ( email )

Tempe, AZ
United States

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