Scribd
Upload
110 views

Chapter 2-Introduction-to-Management-Science-Part-2

The document introduces management science and its tools. It discusses the steps of quantitative analysis and defines key concepts like feasible/infeasible and optimal/non-optimal solutions. Management science applies a systematic process and mathematical models to help managers make decisions. It draws from fields like operations research and uses techniques such as linear programming, inventory models, and decision analysis.

Uploaded by

ernie
Copyright
© © All Rights Reserved
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
110 views

Chapter 2-Introduction-to-Management-Science-Part-2

The document introduces management science and its tools. It discusses the steps of quantitative analysis and defines key concepts like feasible/infeasible and optimal/non-optimal solutions. Management science applies a systematic process and mathematical models to help managers make decisions. It draws from fields like operations research and uses techniques such as linear programming, inventory models, and decision analysis.

Uploaded by

ernie
Copyright
© © All Rights Reserved
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
You are on page 1/ 14

Introduction to

Management Science:
Part II

BA 424 Group 2 | Arong | Bacalla | Inot | Travero


Learning Outcomes

Explain the features, process, and tools of management science

Demonstrate the steps of the quantitative analysis process

Define the different mathematical tools and understand their role in decision-making

Describe feasible or infeasible, optimal or non-optimal, and unique or multiple solutions

BA 424 Group 2 | Arong | Bacalla | Inot | Travero


A key management function

Involve a critical view of the different


alternative courses of action

BA 424 Group 2 | Arong | Bacalla | Inot | Travero


Management science as a managerial decision-making’s focal point because of:

The The use of a The utilization


The use of an The use of some
implementation systematic of mathematical
interdisciplinary software
of the scientific process to solve tools
approach applications
approach problems

BA 424 Group 2 | Arong | Bacalla | Inot | Travero


Steps:
1 Defining a problem

2 Collecting information

The cognitive process of 3 Identifying alternatives


selecting a course of action
to achieve the goals of the 4 Weighing the alternatives
organization
5 Selecting the best possible option

6 Planning and implementing

7 Reviewing and evaluating the outcome

BA 424 Group 2 | Arong | Bacalla | Inot | Travero


Scientific Method

The highest standard in Steps:


investigating the natural world
1 Formulate the question or hypothesis
Consists of :
• Systematic observation 2 Collect data
• Measurement
• Experiment
• Formulation of questions or hypotheses 3 Test hypothesis

4 Draw a conclusion

BA 424 Group 2 | Arong | Bacalla | Inot | Travero


Management science enables a system approach that views Elements in the environment outside the system
that all systems are comprised of subsystems.

3 well-defined parts of systems:

Inputs Social Political Legal


Processes
Outputs

Physical Economic Technogical

BA 424 Group 2 | Arong | Bacalla | Inot | Travero


Reasons for using mathematical models: (Turban and Meredith, 1986)

The advancement of technology has resulted to more alternatives

Mathematical models are easier to manipulate than the real system

The cost of blunders during the trial-and-error experiment will be lower

Mathematical models allow managers to take advantage of calculated risks in the decision-making process

With the use of modeling analysis, the cost will be relatively lower compared to a similar process
done with the real system

BA 424 Group 2 | Arong | Bacalla | Inot | Travero


Allocation Inventory Models Queuing Models Competitive Models Network Models
Models

Dynamic Programming Decision Analysis Forecasting


Markov Analysis
Models Models

BA 424 Group 2 | Arong | Bacalla | Inot | Travero


‘game theory’
determine the best
present an analytical
• Used for problems inventory model and the
Inventory Models Competitive
framework on theModels
competing
involving the best time to place an
players in the achievement of
allocation of resources order
their conflicting goals
to obtain optimal
Allocation
Allocation
effectives
Models
Models
• Includes linear aim to manage waiting employed for proper
Queuing Models Network Models
programming and line problem based on the management of
distribution models arrival process, queue interrelated activities or
structure and service "network" such as large
process construction projects

BA 424 Group 2 | Arong | Bacalla | Inot | Travero


employed for managerial situations
deal with the
involving the selection of an optimal
optimization
Dynamic Programmingof Decision Analysis
course of action given potential return
multistage
Modelsdecision Models probabilities of
and the corresponding
situations
the state of nature

describes and forecasts


Markov Analysis Involves the prediction of
Forecasting
the possible outcome of a
the future under various
system that undergoes
scenarios
transition over time

BA 424 Group 2 | Arong | Bacalla | Inot | Travero


Feasible and Optimal and Non- Unique and
Infeasible Solutions Optimal Solutions Multiple Solutions

A feasible solution
The best among all If there will be a
requires that all
feasible solutions is single optimal
conditions and
called an optimal solution, it will be
constraints given on
solution classified as a
the problem are
unique solution
satisfied

BA 424 Group 2 | Arong | Bacalla | Inot | Travero


Decision-makers need management
science to be able to interpret the
countless number of variables in a very
fluid business environment.

BA 424 Group 2 | Arong | Bacalla | Inot | Travero


Thank You!

BA 424 Group 2 | Arong | Bacalla | Inot | Travero

You might also like