Dr.

Basma Ezzat
 Your best quote that reflects your
Operations
approach… “It’s Research vs. Data
one small step for
Science
man, one giant leap for mankind.”
➢- Neil Armstrong
Operations Research
✓ is primarily concerned with making decisions.
✓ is where you turn if you have a known relationship between inputs and
outputs.
✓ economists that know how to code.
➢ Data Science
✓ is mostly concerned with making inferences.
✓ is where you turn if you're trying to determine that relationship (for some
definition of input and output).
✓ statisticians that know how to code.
Your best quote that reflects your
The Management
approach… “It’s one smallScience
step for
man, one giantApproach
leap for mankind.”
-➢
NeilManagement
Armstrong Science:
✓ An approach to decision making based on the scientific
method
✓ The application of a scientific approach to solving
management problems in order to help managers make better
decisions.
➢ The terms interchangeably: Management Science, Operations
Research, Quantitative Methods, Quantitative Analysis,
Decision Science
 The Management Science
Approach (cont’d)
➢ Management Science can be used in a variety of organizations
to solve many different types of problems

➢ In this course all of the modeling techniques and solution

methods are mathematically based.

➢ The purpose of this course is to provide students with a sound

conceptual understanding of the role that management science
plays in the multi-criteria decision-making process

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 Problem Solving and Decision
Making
➢ Problem solving: the process of identifying a difference
between the actual and the desired state of affairs and the
taking action to resolve the difference

➢ Decision making: generally associated with the first five steps

of the problem-solving process

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 Problem Solving and Decision
Making (cont’d)
➢ The Relationship between Problem Solving and Decision Making
Define the Problem

Identify the Alternatives

Decision
Determine the Criteria
Making

Problem
Evaluate the Alternatives
Solving

Choose an Alternative

Implement the Decision Decision

Evaluate the Results

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 Problem Solving and Decision
Making (cont’d)
➢ An Alternate Classification of the Decision-Making Process

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 Quantitative Analysis and Decision
Making
➢ The reasons why a quantitative approach might be used in the
decision-making process
1. The Problem is complex, and the manager cannot develop a good
solution without the aid of quantitative analysis
2. The problem is especially important, and the manager desires a
thorough analysis before attempting to make a decision
3. The problem is new, and the manager has no previous experiences
from which to draw
4. The problem is repetitive, and the manager saves time and effort by
relying on quantitative procedures to make routine decision
recommendations
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Quantitative Analysis and Decision
Making (cont’d)
➢ The Role of Qualitative and Quantitative Analysis
Analyzing the Problem

Qualitative
Structuring the Problem Analysis

Define Identify Determine Summary Make

the the the and the
Problem Alternatives Criteria Evaluation Decision

Quantitative
Analysis

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 Quantitative Analysis – Model
Development
➢ Model is the presentation of real objects or situations and can
be presented in various forms.
✓ Iconic Models: physical replicas of real objects (ex. child’s toy
truck).
✓ Analog Models: physical in form but do not have the same
physical appearances as the object being modeled (ex.
speedometer, thermometer)
✓ Mathematical Models: representations of a problem by a
system of symbols and mathematical relationships or expressions.
(ex. P = 10x ; total profit earned by selling x units)

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 Quantitative Analysis – Model
Development (cont’d)
➢ The purpose, or value, of any model is that it enables us to make
inferences about the real situation by studying and analyzing the
model.
➢ Experimenting with models requires less time and less
expensive than experimenting with the real object or situation.
➢ Models also have the advantage of reducing the risk associated
with experimenting with the real situation

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 Quantitative Analysis – Model
Development (cont’d)
➢ The value of model-based conclusions and decisions is
dependent on how well the model represents the real situation.
➢ Because this course deals with quantitative analysis based on
mathematical models, let us look more closely at the
mathematical modeling process.

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 Mathematical Model

➢ Objective Function
✓ a mathematical expression that describes the problem’s objective,
such as maximizing profit or minimizing cost
➢ Constraints
✓ a set of restrictions or limitations, such as production capacities
➢ Uncontrollable Inputs
✓ environmental factors that are not under the control of the decision
maker
➢ Decision Variables
✓ controllable inputs; decision alternatives specified by the decision
maker, such as the number of units of Product X to produce
 Mathematical Model (cont’d)
➢ The success of the mathematical model and quantitative approach
will depend on heavily on how accurately the objective and
constrains can be expressed in terms of mathematical equations or
relationships.
➢ ex.) complete mathematical model
Maximize P = 10x objective function
Subject to (s.t.)
5x ≤ 40 constraints
X≥0
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Mathematical Model (cont’d)

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 Mathematical Model (cont’d)

➢ Mathematical model solution: the analyst will attempt to

identify the values of the decision variables that provide the
“best” output for the model
✓ Optimal solution: the specific decision-variable value or
values providing the “best” output for the model
✓ Infeasible: If a particular decision alternative does not
satisfy one or more of the model constraints regardless of
the objective function value.
✓ Feasible: If all constraints are satisfied.
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Management Science Techniques
➢ Linear Programming ➢ Multi-Criteria Decision Making
➢ Integer Linear Programming ➢ Goal Programming
➢ Network Models ➢ Analytic Hierarchy Process
➢ Project Management ➢ Forecasting
➢ Inventory Models ➢ Markov Process Models
➢ Queuing Models ➢ Dynamic Programming
➢ Simulation
➢ Decision Analysis
➢ Transportation
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