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Intro To Management Science

Management science uses a scientific approach and quantitative tools to help solve business problems and make optimal economic decisions. It involves defining the problem, developing a mathematical model, gathering quantitative data, finding the optimal solution, and checking the results. Some common quantitative tools used in management science include linear programming, decision theory, regression analysis, queuing theory, and PERT/CPM. While management science provides a structured process, it also has limitations such as subjective perspectives, assumptions in the models and data, and focusing only on quantitative factors.

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Kristina Miranda
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110 views14 pages

Intro To Management Science

Management science uses a scientific approach and quantitative tools to help solve business problems and make optimal economic decisions. It involves defining the problem, developing a mathematical model, gathering quantitative data, finding the optimal solution, and checking the results. Some common quantitative tools used in management science include linear programming, decision theory, regression analysis, queuing theory, and PERT/CPM. While management science provides a structured process, it also has limitations such as subjective perspectives, assumptions in the models and data, and focusing only on quantitative factors.

Uploaded by

Kristina Miranda
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Introduction to

MANAGEMENT
SCIENCE

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MANAGEMENT
SCIENCE
T h e s c i e n t i fi c a p p r o a c h
used to determine
management problems
and make economic
decisions using
quantitative tools to
achieve the optimum
solution
QUANTITATIVE
APPROACH
Quantitative
process
analysis
of
is a
solving
management problems with
the use of a s c i e n t i fi c
approach
• D e fi n i n g t h e m a n a g e m e n t
problem
• Developing a mathematical
problem
• Gathering quantitative data
• Finding optimal solution
• Checking the results
DEFINING THE
MANAGEMENT
PROBLEM
A BUINESS MAY BE
CONFRONTED WITH
SEVERAL PRESSING
PROBLEMS INVOLVING
BOTH QUANTITATIVE AND
QUALITATIVE DATA.
DEVELOPING A
MATHEMATICAL
A m oMODEL
del is a representation
of an event, situation,
relationship, or reality

• PHYSICAL MODEL
• SCALE MODEL
• SCHEMATIC MODEL
• MATHEMATICAL MODEL
GATHERING
QUANTITATIVE
DATA
The two important factors that
must be considered in the
collection of quantitative data
are the accuracy of the data
and the reliability of the
source.
FINDING THE
OPTIMAL
SOLUTION
• ALGORITHM
• COMPLETE
ENUMERATION
CHECKING THE
RESULTS
Statistical measures may be
adopted to check the
appropriateness of the
model, the results, and the
reliability of the results
ANALYZING AND
EVALUATING THE
FINDINGS
• Analysis involves the breaking
of the entire quantitative
approach into several parts to
identify the proper
information needed in
drawing a managerial decision
• Evaluating the results refers to
making judgements, based on a
particular criterion or standard,
whether or not to proceed with
t h e fi n d i n g s
IMPLEMENTING
THE FINDINGS
• This happens when the
management has
understood the underlying
concepts of the approach
conducted and is fully
convince of the likelihood
that the quantitative
fi n d i n g s w i l l p r o v i d e
fi n a n c i a l b e n e fi t s t o t h e
LIMITATIONS OF
MANAGEMENT
1 . T h e m e m b eSCIENCE
rs of management may have
contradicting perspective regarding a
problem, which could lead to resistance.

2. The model that is developed under


assumptions could work reliably if the
assumptions are fully observed.
3. The data collected, either by the
a c c o u n t i n g d e p a r t m e n t o r e i t h e r o ffi c e s ,
m a y n o t b e s u ffi c i e n t f o r q u a n t i t a t i v e
4 . T h e q u a n t i t a t i va
e naapl ypsr iosa. c h e m p l o y s o n l y
quantitative data and suggests a solution
based on a mathematical representation.
Management
Science Tools
Linear Cost- Economic Decision Regressio Queing PERT/ Probabilty
Programmin Volume- order Theory n Analysis Theory CPM Concept
g
a. Graphical Profi t quantity
(CVP) (EOQ)
Method
Analysis model
b. Simplex Method
c. Transportation
Problem
d. Assignment
Problem
Assumptions in
Management
Science
Techniques
Every quantitative tools
has assumptions as well.
A particular quantitative
technique cannot be
applied when the
assumptions are violated
Management Science
Presentation

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