Lazo, Myles N. AC-1A MANAGEMENT SCIENCE March 27, 2020 MS. ANNA MARIE Q.

SIASAT

Brief explanation of the posted important terms:

THERE ARE FOUR MAJOR CHARACTERISTICS OF MANAGEMENT SCIENCE

1. Examine Functional Relationships from a Systems Overview:

It is describe in such a way that any one feature of a company's operation will have some effect on each other's behavior.
Therefore all critical interactions must be defined and their effect on the organization as a whole must be calculated.
Originally, the functional relationships within a management science project are intentionally extended. There’s an overview
that describes the entire region under the supervision of the manager. It provides a framework for initiating investigations
into issues which tend to affect performance at all levels.
2. Use the Interdisciplinary Approach:
Management science follows a basic idea as well, it looks at the problem from various perspectives and methods. It also
emphasizes the interdisciplinary approach, because each of the different aspects of a problem can better be understood
and solved by others, experts in various fields such as accounting, biological, economic, technological, mathematical,
physical, psychological, sociological, statistical, etc.

3. Uncover New Problems for Study:

It is often forgotten that the MS problem solving brings new problems to light. Around the same time, all the interrelated
issues found by the MS method need not be resolved. However, if optimum benefits are to be achieved each has to be
solved with respect to other problems.

4. Use a Modeling-Process Approach to Problem Solving:

The philosophy of management takes a systematic approach to problem solving. It can require the help of mathematical
models to use a modeling method approach.

There are also OTHER CHARACTERISTICS of management science given:

5. A primary focus on managerial decision-making.

A decision is the result of a phase in which one chooses between two or more alternative courses of action
available for the purpose of attaining an objective(s). Decision making is the process. Management decision-
making is synonymous with the whole management process.
6. The application of science to decision-making.

Each decision, whether private, public or corporate, is based on the principles and values of the decision-maker.
By influencing their values, science can and should benefit decision-makers.

7. A dependence on electronic computers.

Computer knowledge is important to most managers and they rely heavily on it; at the moment, computer
knowledge is more useful for financial resources’ control than for operations management. Managers who are
most pleased with the value of computer-based knowledge use support staff to help mediate the information
environment of their company.

8. An appraisal resting on criteria of economic effectiveness. Effectiveness may be defined as the extent to
which goals are achieved. Effectiveness is evaluated by measures of effectiveness (also known as
measures of performance).

To really know how effective your managements is — and to emphasize how to strengthen them— you will need a
combination of both qualitative and quantifiable data. Looking at quantity statistics such as company or team‐
profitability or employee participation levels in isolation does not allow you to negate their direct effect on them—
other factors will also be involved.

Following are the managerial science tools developed for use in decision making:

 Decision Matrices
A set of values in columns and rows, allowing you to visually compare potential solutions by measuring their
importance based variables.
 Decision Trees
The extension of decision matrices for circumstances requiring multiple periods of decision takes the
form of a tree.
 Mathematical Programming
This aims to increase the degree of accomplishment of one goal, subject to a collection of criteria and
limitations. It has extensive use in industry, economics, engineering, military and public service,
primarily as an aid to solving problems of allocation.
 Branch and Bound
This is a step-by-step method that is used when there is a very large (or even infinite) number of
alternatives for certain management problems.
 Network Models
It is a family of instruments designed to plan and manage complex projects. PERT, and CPM are the best
known versions.
 Dynamic Programming
This is an approach to actions that are ultimately of a sequential nature or can be reformulated to be
deemed sequential. It is a strong and very general instrument.
  Markov Chains
These are used to forecast the effects of processes in which systems or components are evolving over
time (e.g., consumers are shifting their tastes for some product brands).
 Game Theory
It offers a hierarchical decision making approach and provides a basis for conflict research in
competitive environments.
 Inventory Models
Which is also discussed last time, it is a mathematical model which supports enterprise to determine the
optimal stock level to be maintained during the manufacturing cycle, manage order frequency,
determine the quantity of products or raw materials to be stored, monitor raw material and products
supply flow, and provide customers with continuous service without delay.

𝕎 𝔸𝕀𝕋𝕀ℕ𝔾 𝕃𝕀ℕ𝔼 or
The so called QUEUING models

These refer to specific descriptive models have been developed for certain types of problems involving
queues to predict the performance of service systems, such as queue at a cafeteria, library, bank, etc.

Common to all of these cases are the arrival of service-requiring objects and the associated delays
when the service mechanism is busy. Waiting lines cannot be completely eliminated, but appropriate techniques
can be used to reduce the waiting time of an object in the system. A long waiting line may result in the loss of an
organization's customers. Waiting time may be reduced by providing additional service facilities, but this may
result in an increase in the idle time of the service mechanism.

𝒮𝒾𝓂𝓊𝓁𝒶𝓉𝒾𝑜𝓃 𝑀𝑜𝒹𝑒𝓁𝓈
Management science uses descriptive-type simulation models to analyze complex systems when all
other models fail.
There are 5 models that can be used including:

1. Artificial Intelligence.

Artificial intelligence is all over. That's exactly what it feels like. If it's not currently used for a task, it's talked
about — in particular, combining machine learning with simulation. Governments are also using it.

2. Heuristic programming.

Heuristics are nothing new, they play an important role in our daily lives, both in problem-solving and decision-
making.
 3. Management games.

Businesses are always looking for new ways to challenge and stimulate employees. One way to do this is for
employees to participate in various team building and decision making activities. By participating in decision-
making exercises, employees are able to acquire new skills and learn to work together more effectively as a
group.

4. Systems simulation, and

Is a set of techniques that use computers to imitate the operation of various tasks or processes in the real world
through simulation. Computers are used to generate numeric models for the purpose of describing or displaying
complex interactions between multiple variables within the system.

5. Monte Carlo simulation.

The technique used to understand the impact of risk and uncertainty on financial, project management, cost and
other forecasting models.
Simulation also uses statistical and computer modeling to investigate the performance of a business process either in a
new situation or to improve an existing set of processes. By modeling different process scenarios and outcomes,
companies can minimize the traditional risks associated with change management initiatives without having to change the'
live' business environment in which performance could be adversely affected.