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Management Science

  • Chapter 1

Chapter Topics

  • Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall
  • The Management Science Approach to Problem Solving
  • Model Building: Break-Even Analysis
  • Computer Solution
  • Management Science Modeling Techniques
  • Business Usage of Management Science Techniques
  • Management Science Models in Decision Support Systems

The Management Science Approach

  • Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall
  • Management science uses a scientific approach to solving management problems.
  • It is used in a variety of organizations to solve many different types of problems.
  • It encompasses a logical mathematical approach to problem solving.
  • Management science, also known as operations research, quantitative methods, etc., involves a philosophy of problem solving in a logical manner.

The Management Science Process

  • Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall
  • Figure 1.1
  • Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall
  • Observation - Identification of a problem that exists (or may occur soon) in a system or organization.
  • Definition of the Problem - problem must be clearly and consistently defined, showing its boundaries and interactions with the objectives of the organization.
  • Model Construction - Development of the functional mathematical relationships that describe the decision variables, objective function and constraints of the problem.
  • Model Solution - Models solved using management science techniques.
  • Model Implementation - Actual use of the model or its solution.

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