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Management Science - Activity 2

This document contains a student's notes on management science concepts and activities related to demand and pricing models. 1) It differentiates between management science, which focuses on quantitative tools and soft skills for managing projects, and operations research, which provides scientific models and algorithms to support project management. 2) It includes activities analyzing demand curves based on price changes and calculating total revenue using a linear demand function. 3) Additional activities examine scheduling golf matches over a season for different numbers of couples to ensure each couple plays once per week.

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Vanessa Canoog
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59 views4 pages

Management Science - Activity 2

This document contains a student's notes on management science concepts and activities related to demand and pricing models. 1) It differentiates between management science, which focuses on quantitative tools and soft skills for managing projects, and operations research, which provides scientific models and algorithms to support project management. 2) It includes activities analyzing demand curves based on price changes and calculating total revenue using a linear demand function. 3) Additional activities examine scheduling golf matches over a season for different numbers of couples to ensure each couple plays once per week.

Uploaded by

Vanessa Canoog
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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Name: Vanessa Canoog Date: 9/23/2022

Corse and Year: BSMA 2A BA

Introduction to Management Science:

1. Differentiate Management Science and Operations Research


- Management Science tends to focus on quantitative tools and the soft skills necessary to
manage projects successfully. Operations Research gives the essential scientific contribution to
the success of project management through the development of models and algorithms.

Activity scenarios:

1.

Answers:

a. Total = x + y
b. Total Cost = $0.20x + $0.25y
c. x + y = 5000
d. Total = x + y where x ≤ 4000 and y ≤ 3000
e. The minimum cost is 0.20x + 0.25y
x + y = 5000
x ≤ 400
y ≤ 3000
x, y ≤ 0
2.

Answers:

a. Formula to be used: d = 800 – 10p


Let: d = annual demand for a product in units
P = price per unit

At $20 per-unit price At $70 per-unit price

d= 800 - 10 d= 800 - 10
(20) (70)
The firm can sell 600 units if the per-unit price is $20 while it can sell 100 units if the per-unit price is
$70.

b.

Situation From: To: What happens to


annual units demanded
for the product?
from $26 to $27 Let p= 26: Let p= 27: The annual units
d= 800 - 10 (26) d= 800 - 10 (27) demanded for the
d= 540 d= 530 product decreases by
10 units.
from $42 to $43 Let p= 42: Let p= 43: The annual units
d= 800 - 10 (42) d= 800 - 10 (43) demanded for the
d= 380 d= 370 product decreases by
10 units.
from $68 to $69 Let p= 68: Let p=69: The annual units
d= 800 - 10 (68) d= 800 - 10 (69) demanded for the
d= 120 d= 110 product decreases by
Suggested relationship: 10 units.

As the per-unit price increases, the annual demand for the product in units decreases.

c. TR= d (p)

Let: d =annual demand for a product in units

p = price per unit

d.

Situation Demand (d) Total Revenue (TR)


(d = 800 - 10p) (TR= d (p))
Let p= 30 d= 800 - 10 (30) TR= 500 (30) Total Revenue is
d= 500 TR= 15,000 $15,000
Let p= 40 d= 800 - 10 (40) TR= 400 (40) Total Revenue is
d= 400 TR= 16,000 $16,000
Let p= 50 d= 800 - 10 (50) TR= 300 (50) Total Revenue is
d= 300 TR= 15,000 $15,000

e.

Demand (d) Total Revenue (TR)


(d = 800 - 10p) (TR= d (p))
d= 800 - 10 (30) TR= 500 (30)
d= 500 TR= 15,000
d= 800 - 10 (40) TR= 400 (40)
d= 400 TR= 16,000
d= 800 - 10 (50) TR= 300 (50)
d= 300 TR= 15,000
C.

Answers:

1. Each of the 18 couples has to play with the other 17 couples once. This means that each couple
plays seventeen matches. Therefore, each couple has to play once every week of the season for
17 weeks.

The number of golf matches is given by the “combination expression ”.

The number of matches per week is . It also ensures that all the 18 couples get to
play once every week for 17 weeks.

2. Each of the 17 couples has to play with the other 16 couples once. This means that each couple
plays sixteen matches. Therefore, each couple can play once every week of the season and will
have one free week during the 17 weeks.

The number of golf matches is given by the “combination expression ”.

The number of matches per week is .

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