WHAT IS DECISION MODELING?
Corporate decisions with deep and long-range implications fall into a special class of problem-solving. These are often complex with many degrees of freedom and large solution space. Human intuition alone is insufficient for highly complex business decisions with substantial economic consequences. To that end we must combine intuition, judgment, experience, and knowledge with data, models, and computation.
The Power of Decision Models
Decision Modeling helps transform the way companies make decisions through the lens of economic value.
Provides a business-friendly, primarily graphical environment for configuration, use and maintenance.
Enables a seamless linkage between process, rules, logic, analytics, optimization and value.
Context
A major refiner was planning the addition of a large chemical facility within the same physical complex. The additional chemical production facility put greater stresses on the existing refinery’s marine logistics system that brings inbound materials and ships finished products.
Result
- Insight into precise capital needs to support the new facility.
- Moved from inefficient vessel handling to a more efficient, safer model
- Simulation model helped test different operations strategies
Context
Client was evaluating the impact of a +$10 billion dollar investment on its export terminal. We developed a discrete event simulation model to test various logistics scenarios and asset configurations.
Results
The model showed various bottlenecks and congestion affecting plant run time and economic impacts and trade-offs.
Context
Large national retailer committed to doubling stores in its network from 1100 to 2200. It had to decide the optimal location for these stores based on a number of parameters.
Results
We incorporated known “rules” of shopper behavior with demographic data to develop a statistical profile of shoppers. This helped simulate the various store location candidates.
- ESG tracking and modeling to look at economic impact to achieve carbon neutrality.
- Optimization of renewable resources to deliver continuous green sources of power for refining, and manufacturing facilities
- Geothermal energy production is gaining a lot of attention as a low-carbon alternative in the energy transition, especially for our oil & gas partners, who recognize the similarities to their industry. Commonly used in oil & gas but infrequently in geothermal, decision models help investors understand trade-offs, and engineers optimize designs through what-if scenarios. We leverage the work done by standards organizations such as NREL to build out the process and economics with an unbiased basis.”