OR/MS Today - June 2004


New Books


Community Operational Research: OR and Systems Thinking for Community Development


Edited by Gerald Midgley and Alejandro Ochoa-Arias

This book sets out the current concerns of community operational research (community OR for short) and explores new possibilities for its development. Leading community OR writers, international reputations in operational research and systems, have contributed chapters that illuminate different aspects of community OR theory and practice.

Following an introductory chapter by the editors on community OR, the book is presented in four sections:

Section one presents the history and development of community OR, exploring the institutional development of community OR and people's motivations for engaging in it. Methodological issues are also discussed.

Section two covers local action for community development. Even though the emphasis is on dealing with local issues, all the authors use methods and techniques to support widely informed decision-making. In every case, the impacts of a complex variety of phenomena are taken into account.

Section three is titled "Dealing Locally with Global Issues." Here, the themes of community development are taken one stage further. This includes authors who are explicitly seeking to address global issues (e.g., environmental problems and the international dimensions of poverty) through widely informed local action.

Section four, "The Politics of Systemic Intervention," discusses two themes: the political nature of community OR practice and the value of systems thinking to community development.

Published by Kluwer Academic Publishers.


Statistical Analysis of Financial Data in S-Plus


By Rene A. Carmona

Although there are many books on mathematical finance, few deal with the statistical aspects of modern data analysis as applied to financial problems. This book fills this gap by addressing some of the most challenging issues facing any financial engineer. It shows how sophisticated mathematics and modern statistical techniques can be used in concrete financial problems.

Concerns of risk management are addressed by the control of extreme values, the fitting of distributions with heavy tails, the computation of values at risk and other measures of risk. Data description techniques such as principal component analysis, smoothing and regression are applied to the construction of yield and forward curve. Nonparametric estimation and nonlinear filtering are used for option pricing and earnings prediction.

The book can help quantitative analysts by guiding them through the details of statistical model estimation and implementation. It will also be of interest to researchers wishing to manipulate financial data, implement abstract concepts and test mathematical theories, especially by addressing practical issues that are often neglected in the presentation of theory.

Published by Springer-Verlag.


Loss Models: From Data to Decisions


By Stuart A. Klugman, Harry H. Panjer and Gordon E. Willmot

This book is organized around the principle that actuaries build models in order to analyze risks and make decisions about managing the risks based on conclusions drawn from the analysis. In practice, one begins with data and ends with a business decision. The book flows logically from this principle. It begins with a framework for model building and a description of frequency and severity loss data typically available to actuaries. Parametric models are emphasized throughout.

The frequency and severity models are used in building aggregate loss models, in credibility-based pricing models and in loss analysis over multiple time periods.

Designed as both an educational text as well as a professional reference, "Loss Models":

  • Assumes little prior knowledge of insurance systems;

  • Features many fascinating examples taken from insurance files;

  • Contains a major instructive case study continued through each chapter;

  • Covers the classical areas of risk theory and loss distributions;

  • Gives a practical but rigorous treatment of modern credibility theory;

  • Uses standard statistical concepts, methods and notation;

  • Provides modern computational algorithms for implementing methods;

  • Includes free companion software available from an FTP site;

  • Deals with many topics on CAS 4B and SOA 151 and 152 actuarial exams; and

  • Includes many exercises based on past CAS and SOA exams.

Published by John Wiley & Sons.


Handbook of Quantitative Supply Chain Analysis Modeling in the E-Business Era


Edited by David Simchi-Levi, S. David Wu
and Zuo-Jun (Max) Shen

Over the past two decades, not only has supply chain analysis become a strategic focus of leading firms, it has also spawned an impressive array of research that brings together diverse research communities. Adding to this diversity and intellectual energy is the emergence of E-Business. E-Business creates new competitive dimensions that are fast-paced, ever-changing and risk-prone, dimensions where innovation, speed and technological savvy often define success. Most importantly, E-Business challenges the premises and expands the scope of supply chain analysis. This book is a comprehensive research reference that is essential for anyone interested in conducting research in supply chain. Unique features include:
  • A focus on the intersection of quantitative supply chain analysis and E-Business;

  • Unlike other edited volumes in the supply chain area, this is a handbook rather than a collection of research papers. Each chapter was written by one or more leading researchers in the area. These authors were invited on the basis of their scholarly expertise and unique insights in a particular sub-area

  • As much attention is given to looking back as to looking forward. Most chapters discuss at length future research needs and research directions from both theoretical and practical perspectives;

  • Most chapters describe in detail the quantitative models used for analysis and the theoretical underpinnings; many examples and case studies are provided to demonstrate how the models and the theoretical insights are relevant to real situations;

  • Coverage of most state-of-the-art business practices in supply chain management.

Published by Kluwer Academic Publishers.


Bayesian Approaches to Clinical Trials
and Health-Care Evaluation


By David J. Spiegelhalter, Keith R. Abrams
and Jonathan P. Myles

The Bayesian approach involves synthesizing data and judgement in order to reach conclusions about unknown quantities and make predictions. Bayesian methods have become increasingly popular in recent years, notably in medical research, and although there are a number of books on Bayesian analysis, few cover clinical trials and biostatistical applications in any detail. The book provides an overview of this rapidly evolving field, including basic Bayesian ideas, prior distributions, clinical trials, observational studies, evidence synthesis and cost-effectiveness analysis.

The book covers a broad array of essential topics, building from the basics to more advanced techniques:

  • Illustrated throughout by detailed case studies and worked examples;

  • Includes exercises in all chapters; and

  • Accessible to anyone with a basic knowledge of statistics.

The authors are at the forefront of research into Bayesian methods in medical research.

Published by John Wiley & Sons.


Discovering Knowledge in Data:
An Introduction to Data Mining


By Daniel T. Larose

The field of data mining lies at the confluence of statistical analysis, machine learning and business intelligence. However, nearly all the books published so far have been restricted solely to a single one of these areas, usually either machine learning or business intelligence. This book benefits students, instructors, researchers and managers by introducing them to the three streams of knowledge that comprise data mining.

Published by John Wiley & Sons.






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