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Introduction To Management Science - Operations Management

This document provides an introduction to management science techniques. It explains that operations management is key to creating goods and services in any organization through transforming inputs to outputs. The three basic activities of all organizations are marketing, production/operations, and finance/accounting. Management science techniques can help managers optimize the use of resources like labor, capital, materials and improve productivity, forecasting, inventory management, distribution and delivery routes.

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AMALHAILA BASER
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211 views

Introduction To Management Science - Operations Management

This document provides an introduction to management science techniques. It explains that operations management is key to creating goods and services in any organization through transforming inputs to outputs. The three basic activities of all organizations are marketing, production/operations, and finance/accounting. Management science techniques can help managers optimize the use of resources like labor, capital, materials and improve productivity, forecasting, inventory management, distribution and delivery routes.

Uploaded by

AMALHAILA BASER
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 PDF, TXT or read online on Scribd
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Introduction to Management

Science
Management Science
Management science techniques are most applicable in the field of
operations management.
Operations management is a set of activities that creates goods and
services through the transformation of inputs (raw materials and
labor) to outputs (finished products).
Operations management is applicable in any type of organization
regardless if it is a manufacturing or service entity.
Management Science
In order to create goods and services, all organizations perform the
three basic activities:
1. Marketing
2. Production/Operations
3. Finance/Accounting
Management Science
The importance of operations management are:
1. It is an important business activity
2. To understand how goods and services are produced
3. It is a costly part of an organization
Management Science

Manufacturing Company Service Oriented Company


Management Science
Organizations must become productive in transforming inputs to outputs
Productivity is affected by the following factors:
1. Labor
2. Capital
3. Management
Management Science
Workers must be healthier, better educated and motivated to perform
their work properly.
Capital must be used efficiently in the operations of the organization
because it affects the quantity/quality of goods produced and services
performed.
Management must ensure that labor and capital must be used
efficiently in the operations.
Management Science
The following are MS techniques that managers may use in the overall
operations of the organization:
1. Expected value analysis
2. Linear programming
3. Forecasting
4. Inventory management
5. Transportation model
6. Network flow model
Management Science
Expected Value Analysis
It is a quantitative method to estimate the value of a set of future
events. Decision tree analysis uses techniques of expected value.

Scenario Estimated Profit Probability Results


Economic Php 120,000 75% Php 90,000
Recovery
Recession 40,000 25% 10,000
Expected Profit 100,000
Management Science
Linear Programming
It is a quantitative technique that is applied to optimized the use of
limited resources. Limited resources would include materials,
machine hours, direct labor hours and cash.
Linear programming can be performed in an equation method, tabular
method or graphical method.
Management Science
Forecasting
It is a quantitative method that assists managers in determining future
product demand and analyzing sales data.
Inventory Management
It includes identifying the appropriate levels of inventory that a
business must carry to reduce operating costs. It includes identifying
the appropriate levels of inventory to avoid a stock out.
Management Science
Transportation Model
It helps managers in determining the most cost-effective way to
distribute goods to customers
Network Flow Model
It helps managers in determining the best delivery routes.

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