Set theory is a mathematical abstract concerned with the grouping of sets of numbers that have commonality. For example, all even numbers make up a set, and all odd numbers comprise a set. All numbers that end in zero make up a set of numbers that can be divided by 10. Using and comparing sets enables the creation of theories and rules that have practically unlimited scope, whether in mathematics or applied to areas such as business.
Applied to business operations, set theory can assist in planning and operations. Every element of business can be grouped into at least one set such as accounting, management, operations, production and sales. Within those sets are other sets. In operations, for example, there are sets of warehouse operations, sales operations and administrative operations. In some cases, sets intersect -- as sales operations can intersect the operations set and the sales set.
Advertisement Article continues below this adRough-set theory postulates that all things have something in common with at least one other thing. The difficulty in quantifying these sets gives rise to the name "rough sets." These sets provide a way of comparing and drawing conclusions regarding operational elements that may not be fully defined or quantified. An example of rough sets used in operations is a historical comparison of the Great Depression of the 1930s with the Credit Crisis of 2008. These sets are not the same, but they do intersect at certain points, and these intersections can reveal important clues to the effect of management operations before and during periods of financial crises.