Model Management and Solvers For Decision Support
Model Management and Solvers For Decision Support
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In this chapter, we examine a major function in class of decision support systems (DSS):
model management in model-oriented DSSs. In particular, the chapter focuses on the con-
cept of model management systems and explores key issues in model management: re-
presentation, formulation, composition, integration, selection, and implementation. It also
reviews various kinds of solvers commonly available for decision support and the growing
importance of Web Services technologies for delivering model/solver management cap-
abilities.
Keywords: Decision support system; Decision model; Model management; Solver; Web
Services
1 Introduction
Maximize:
Subject to:
X1 <= D1
X2 <= D2
Where:
Qa is the amount of Ingredient A allocated to produce Products X1 and X2;
Unit Profits for X1 and X2 are p1 and p2, respectively;
Market Demand for X1 and X2 is D1 and D2, respectively;
Unit Amount of A required for producing X1 and X2 is a1 and a2, respectively.
When we have specific data values for a model’s parameters (e. g., for Qa, p1, p2, D1,
D2, a1, a2 in the example above), then the model is instantiated to form a problem
statement. That is, the model coupled with a particular data set amounts to a specific
problem that we can try to solve (e. g., the problem of finding particular values of X1
and X2 that maximize profit in the context defined by the data values for the model’s
parameters). Software that can solve the stated problem is called a solver; it is a data
analysis procedure that derives a solution for any correctly modeled instance of
a class of problems. For example, a linear-programming (LP) solver automates an
algorithm for finding a solution to any LP problem—comprised of an LP model and
a data set.
Thus, the study of model management aims to understand the possibilities for
computer-based treatment of three key elements:
• Models;
• Associated data sets;
• Related solvers.
Within a system that aids decision makers by solving problems they encounter in
the course of reaching decisions (Basu and Blanning, 1994; Chang et al., 1993). In
DSS parlance, it is common to see “models” used to refer to computer programs
(i. e., solvers) that use representations of relationships among variables to help find
solutions to complex problems. That is, the term is often understood to include
solvers that can process the models. For example, a DSS for production scheduling
needs to have a scheduling model and solver that can operate on that model for any
Model Management and Solvers for Decision Support 233
selected data set in order to determine the optimal production sequence for the
selected context.
Many DSS researchers contend that the study of models and their management
is a key ingredient for developing successful DSSs (Alter, 1980; Blanning et al.,
1992; Blanning, 1993; Bonczek et al., 1980, 1981a; Elam, 1980; Haseman et al.,
1976; Keen and Scott Morton, 1978; Liang, 1988; Sprague and Carlson, 1982; Stohr
and Tanniru, 1980). An empirical study reports that decision makers with model
management system (MMS) support outperformed those without the support
(Chung et al., 2000).
The purpose of this chapter is to describe the development of model management
systems and related DSS research issues. The remainder of the chapter is organized
as follows. First, basic concepts of models and the modeling process are described
in Section 2. Model management functions and system architecture are provided in
Section 3. Key issues in model management are reviewed in Section 4. Solvers that
calculate outputs for models are examined in Section 5. Web-based model man-
agement and new research directions for the future are discussed in Section 6.
Using models in DSSs has many advantages. The major ones are (per Turban et al.,
2007, p. 52):
• Models allow easy manipulation of decision variables (changing data
values of decision variables or environment variables) to investigate
potential scenarios, which is much easier than manipulating the real
system. Experimentation with and on models does not interfere with the
daily operation of the decision maker’s organization.
• Models enable the compression of time. Years of operations can be si-
mulated in minutes or seconds of computer time.
• The cost of modeling analysis is much less than the cost of a similar
experiment conducted on a real system.
• The cost of making mistakes during a trial-and-error experiment is much
less for using models than in the real world.
• Models can help estimate and reduce risks. The business environment
involves considerable uncertainty. With modeling, a manager can esti-
mate the risks resulting from specific actions and develop contingency
plans.
• Mathematical models enable the analysis of very large, sometimes infi-
nite, numbers of possible solutions. Even in simple decision problems,
managers often face a large number of alternatives. Decision models can
substantially simplify the analytical process.
• Models enhance and reinforce learning and training.
• Models and solution methods are readily available for solving some
typical problems. Their proper use can enhance decision performance.
• There are many solvers, including Java applets (and other Web pro-
grams), that can be used to solve models.
Model Management and Solvers for Decision Support 235
Table 1. Tasks in the modeling life cycle. Source: Krishnan and Chari, 2000
• Formulation
Statement of the model(s) required • Integration
Model creation to mathematically describe the • Model selection and
problem modification (if necessary)
• Composition
• Model comprehension
Model • Structural analysis
• Model debugging
interpretation • Sensitivity analysis
• Model results analysis
3 Model Management
As models play very important roles in human decision-making processes, they are
considered as a valuable organizational resource that should be managed properly.
Therefore, development of model management systems has been one of the most
Model Management and Solvers for Decision Support 237
important research areas for decision support systems (Liang and Jones, 1988).
A MMS is a software system that provides tools and environments to develop,
store, and manipulate models, data, and solution methodologies associated with
complex decision problems (Gnanendran and Sundarraj, 2006).
There are a few major reasons for model management. First, model development
is a complicated and expensive process. A good MMS can increase the reusability
of existing models. Second, sometimes a model can be built from existing com-
ponents. An MMS can also enhance the productivity in a modeling process by
providing relevant components (also called building blocks or modules in some
literature). Third, different units in an organization may need similar models and
build them separately. An MMS can avoid redundant effort and increase model
consistency in the same organization through model sharing. Fourth, an MMS can
provide a better integration between models and their data. Finally, an MMS can
provide model developers and users with better documents and maintenance
support.
A model is comprised of a set of inputs, outputs, and operations that convert from
inputs to output. Therefore, the basic representation of a model needs to include
these three dimensions. In addition, certain information affiliated with model man-
agement such as integrity constraints and validity information may also be useful.
There are many ways in which a model may be represented for storage and
utilization. Early approaches treated models as data relations or objects, and defined
attributes associated with these objects (Bonczek et al., 1982, 1983). Later, the
structured modeling framework developed by Geoffrion proposed five basic ele-
ments for model representation: primitive entity, compound entity, attribute, func-
tion, and test. These elements are grouped by similarity into any number of classes
called genera, and organized hierarchically as a rooted tree of modules so as to
reflect the model’s high-level structure. The dependencies among these elements
240 Ting-Peng Liang et al.
Binbasioglu and Jarke (1986) were the first to propose an alternative domain-
specific approach to knowledge-based model formulation problems. The domain-
specific approach has since been elaborated in the work of Krishnan (1990; 1991),
Bhargava and Krishnan (1992), and Jones and Krishnan (1992). Raghunathan et al.
(1993; 1995) also elaborated the domain-specific approaches on model formulation
problems.
Jones (1990, 1991) proposed a graph-based model system (GBMS) to facilitate
the construction of models using attributed graphs. A set of graph-grammars was
developed to construct different types of models, and a prototype GBMS system
implemented. Chari and Sen (1997) also proposed a Graph-Based Modeling System
for Structured Modeling (GBMS/SM) using acyclic graphs to represent models in
various domains.
Liang and Konsynski (1993) and Liang (1993) proposed a different approach
based on analogical reasoning. They used a tree-like hierarchy problem repre-
sentation and used a case-based reasoning approach to identify analogies between
a problem description and a previously formulated case. Tseng (1997) used
a blackboard control approach to support diverse reasoning behaviors during model
formulation.
5 Solvers
This solver category covers linear, integer, dynamic, quadratic, and network
models. The taxonomy of these with examples of corresponding solvers is provided
in Figure 3.
Results of a survey published in the June 2005 issue of OR/MS Today includes
over 40 software products divided into solvers, modeling environments, and linking
solvers. Notable examples are AIMMS, AMPL, Frontier Analyst, GAMS, ILOG
CPLEX, LAMPS, LINDO, LINGO, MOSEK, Premium Solver, SAS, Solver
Platform, TOMLAB, and Express.
Model Management and Solvers for Decision Support 245
Last surveyed in December 2006, OR/MS Today includes many decision analysis
products with diverse functionalities. Representative products are Analytica,
Crystal Ball, Decision Explorer, DPL, Frontier Analyst, Insight, and Logical
Decisions.
246 Ting-Peng Liang et al.
OR/MS Today reports on other solver categories from time to time. Examples are
vehicle-routing solvers (June 2006 issue) and forecasting solvers (August 2006
issue). Each survey is accompanied by an explanation and analysis.
During the past decade, the World Wide Web has changed the design, development,
and implementation of information systems. It also has enabled a new way of
thinking about systematic approaches to decision making by allowing a distributed
implementation of decision support technologies (Bhargava et al., 2007; Ching
et al., 1991).
In a web-based DSS, decision models and data resources are distributed at different
locations with different platforms that are interconnected by computer networks. It
is therefore natural for researchers to explore how model management can be done
on the web. By distributed model management, we mean managing models in
a distributed environment (Huh et al., 1999).
For the MMS issues identified in Section 4, the major concern is how to link
component models and data seamlessly on the Internet. For model composition and
integration, components from different sources may create a number of problems
that can range from syntax compatibility to security control. In order to solve the
problem of model composition when models and data are distributed across
multiple sites, Chari (2003) extended the filter space approach (Chari, 2002) to
facilitate model composition when data resources are distributed at different sites
with overlapping key values and different scopes. Huh and Kim (2004) also
proposed a collaborative model management environment.
Model-data integration is another critical issue in a distributed environment.
Early research on model-data integration focused on how they could be integrated
seamlessly (e. g., Liang, 1985). Subsequent studies investigate actual applications
(Rizzoli et al., 1998) and integration with a data warehouse in distributed modeling
(Dolk, 2000). The interoperability in the distributed environment opens another
important issue: information security (Song et al., 2005).
Model Management and Solvers for Decision Support 249
The benefit of using Web Services is twofold. First, in the technical dimension,
Web Services represent a collection of standard protocols for the creation,
distribution, discovery, and integration of semantic software components that
encapsulate business functionalities. Second, in the business dimension, Web
Services enable just-in-time software service provisioning through the integration
of loosely coupled software components.
Instead of viewing models as data or objects, Web Services leads to models
being viewed as services. Models are represented and implemented as computer
software according to the Web Services standard. The decision makers can invoke
decision support services and combine components from various sources at
run-time to find specific computational support.
Kwon (2003) suggests that Web Services technology is useful for at least two
reasons. First, Web Services do not need to know who or what will use the services
being provided. This frees the DSS developer from the burden of user interface.
Secondly, cross-platform capabilities necessary for inter-operability in a distributed
environment are much better for Web Services than a traditional technology in
a heterogeneous environment.
Several intentions of using Web Services for model management have been
reported. For instance, Iyer et al. (2005) propose a Web Service-based approach to
model management. They identify the layers of modeling knowledge and describe
an environment based on Web Services architecture that would help store, retrieve,
and distribute the layers of modeling language.
Güntzer et al. (2007) propose a new retrieval approach for Web Services that is
based on a structured modeling approach called Structured Services Models (SSM).
This approach can help users retrieve online decision support services.
Model Management and Solvers for Decision Support 251
Mitra and Valente (2007) examine trends in the provision of optimization tools
and optimization-based decision support systems as remote applications. They
analyze the evolution from the Application Service Provision (ASP) model to the
e-Services model, and illustrate the importance of distributed optimization
components in the effective deployment of analytic applications in businesses. Web
Service technology is used to deliver optimization-based applications and
optimization components in a distributed environment.
7 Conclusion
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