Foundations of

Management Science:
An Introduction
 Icebreaker: "Management Science Mix-Up"
Materials needed:
- Index cards / paper with various management science terms written on them
- Pens/markers

Instructions:
1. Divide the participants into groups of 12-13 students.
2. Distribute index cards / paper with different management science terms written on them to each group.
3. Explain that each group's task is to discuss and arrange the terms in a way that makes sense in the context
of management science.
4. Give the groups about 5-7 minutes to collaborate and organize the terms.
5. After the time is up, ask each group to present how they've sorted and connected the terms.
6. Encourage other groups to share their thoughts on the arrangement and facilitate a brief discussion on the
different perspectives.
7. Wrap up by emphasizing the importance of understanding various management science concepts and how
they interconnect.

This icebreaker will not only help students get acquainted with management science terminology but also
encourage teamwork and critical thinking.
Introduction to Management Science

An overview of management science

and its applications in decision-
making. Discusses the use of
quantitative analysis and modeling
techniques in solving complex business
problems.
 Introduction to Management Science

• Management science addresses a broad range of managerial

issues across different functional areas.
• Management science relies on quantitative analysis
techniques to process and analyze data
• Modeling is a core aspect of management science, where
mathematical representations of real-world systems are
developed to understand, analyze, and optimize their
behavior
• Management science is applied in various decision-making
contexts to address a wide range of business problems
Historical Development

Explore the evolution of

management science from its
roots in operations research to its
current interdisciplinary nature.
Highlight key contributors and
their pioneering works in the
field.
 Historical Development

1. Early Roots in Operations Research (OR): Operations research originated

during World War II when mathematicians and scientists were recruited to
support military operations
1. Notable contributors include:
1.George Dantzig: Known for developing linear programming and the
simplex method, fundamental techniques used in optimization
problems.
2.Abraham Wald: Pioneered statistical decision theory, which involves
making decisions in uncertain environments based on probabilistic
models.
3.Philip Morse and George Kimball: Conducted pioneering research in
military operations analysis and combat simulation.
 Historical Development
2. Post-War Expansion and Application to Business:
1. After World War II, operations research techniques were applied to civilian industries
to improve efficiency and decision-making processes.
2. Key contributors and their works include:
1. Frederick W. Lanchester: Applied mathematical models to analyze military
conflicts and later extended his work to business strategy and industrial
engineering.
2. Stafford Beer: Introduced cybernetics and systems thinking to management
science, emphasizing the importance of feedback loops and control mechanisms
in organizational systems.
3. Herbert A. Simon: Contributed to decision theory and organizational behavior,
emphasizing the bounded rationality of decision-makers and the importance of
satisficing rather than optimizing decisions.
 Historical Development
3. Expansion into Interdisciplinary Fields:
1. As management science matured, it expanded beyond its roots in operations research to
incorporate insights from other disciplines such as economics, sociology, psychology, and
computer science.
2. Key contributors and their contributions include:
1. Peter Drucker: Known as the "father of modern management," Drucker emphasized the
importance of management principles and practices in achieving organizational
effectiveness.
2. Richard Cyert and James March: Introduced the concept of "satisficing" in
organizational decision-making, highlighting the bounded rationality of managers and
the political nature of organizations.
3. Jay Forrester: Pioneered system dynamics modeling, which uses feedback loops to
simulate complex systems and analyze their behavior over time.
4. Herbert A. Simon: Received the Nobel Prize in Economics for his work on
organizational decision-making processes and bounded rationality.
Decision Making and Problem Solving

Examine the role of decision making

in management science, emphasizing
the use of quantitative methods to
address complex business problems.
Discuss the concept of optimization
in decision- making.
 Decision Making and Problem Solving
• Decision-making in management science involves
identifying, evaluating, and selecting the best possible
alternative
• Quantitative methods are used to analyze data, model
decision scenarios, and assess the potential outcomes of
different courses of action.
• Optimization is the process of finding the best possible
solution to a problem within given constraints, with the
objective of maximizing benefits or minimizing costs.
 Modeling Techniques

Discuss various modeling techniques

such as linear programming, simulation,
and forecasting. Highlight the use of
mathematical models to represent
real- world business scenarios.
 Modeling Techniques

• LP models are widely used in business for

resource allocation, production planning,
inventory management, transportation
logistics, and portfolio optimization.
• Simulation models are used in business
for risk analysis, capacity planning,
process optimization, and strategic
decision-making.
• Forecasting models are used in business
for demand forecasting, sales forecasting,
financial forecasting, and market trend
analysis.
Explore the process of data analysis and its
significance in management science. Emphasize the
use of statistical tools and visualization techniques
to interpret data effectively.
 Data analysis is a systematic process of inspecting,
cleaning, transforming, and interpreting data to
extract meaningful insights and support decision
making.
In management science, data analysis plays a crucial
role in understanding organizational processes,
identifying patterns and trends, assessing
performance, and optimizing outcomes.
The use of statistical tools and visualization
techniques enhances the effectiveness of data
analysis by providing quantitative methods to
analyze data and visually represent findings.
Optimization in Operations

Examine the concept of optimization in

operations management, focusing on
resource allocation, production planning,
and inventory control. Discuss the use of
optimization models in improving
operational efficiency.
 Optimization in Operations
• Optimization models, such as linear programming (LP) and integer programming
(IP), are commonly satisfying construes to solve resource allocation problems by
maximizing efficiency and minimizing costs while aints.
• Optimization models, such as mixed-integer linear programming (MILP) and job
shop scheduling algorithms, are used to optimize production schedules by
considering factors such as production capacity, machine availability, setup times,
and inventory levels.
• Optimization models, such as economic order quantity (EOQ), stochastic inventory
models, and multi-echelon inventory optimization, are used to determine optimal
inventory policies, reorder points, and order quantities.
• Optimization models play a crucial role in improving operational efficiency by
providing data-driven decision support and enabling organizations to make
informed choices that optimize resources and processes.
 Project Management Techniques

Discuss the application of project

management techniques in
managing complex projects.
Highlight the use of network
diagrams and critical path
analysis in project planning and
scheduling.
 Project Management Techniques

1. Network diagrams help project managers:

1.Identify the critical path: The longest path through the network diagram,
which determines the minimum duration required to complete the
project.
2.Identify dependencies: Visualize the relationships between activities and
identify dependencies that may impact project sequencing and
scheduling.
3.Sequence activities: Determine the most efficient sequence of activities
to minimize project duration and optimize resource utilization.
4.Allocate resources: Identify resource constraints and allocate resources
based on activity dependencies and project timelines.
Project Management Techniques

1. By identifying the critical path, project managers can:

1. Focus resources and attention on critical activities: Ensure that resources are
allocated effectively to critical activities to prevent delays and minimize project
duration.
2. Manage project timelines: Monitor the progress of critical activities closely and
take proactive measures to address delays or issues that may impact project
deadlines.
3. Identify opportunities for schedule compression: Evaluate alternative scheduling
scenarios and strategies to shorten the critical path and accelerate project
completion.
4. Communicate project status: Communicate the critical path and key milestones
to stakeholders to provide visibility into project timelines and manage
expectations effectively.
Supply Chain and Logistics
Management

Explore the role of management

science in optimizing supply chain and
logistics operations. Discuss inventory
management and transportation
optimization as key focus areas.
 Supply Chain and Logistics
Management
• Management science techniques are used to optimize inventory policies, determine
optimal inventory levels, and balance the trade-off between inventory holding costs and
stockout costs.
1. Key inventory management techniques include:
1. Economic Order Quantity (EOQ): EOQ models determine the optimal order
quantity that minimizes total inventory costs, including ordering costs and holding
costs, while meeting demand variability and service level requirements.
2. Just-In-Time (JIT): JIT inventory management aims to minimize inventory levels by
synchronizing production and delivery schedules closely with customer demand,
reducing carrying costs and improving responsiveness.
3. Safety Stock Optimization: Safety stock models use statistical techniques to
calculate the optimal level of safety stock required to buffer against demand
variability and supply chain uncertainties while minimizing excess inventory and
stockout risks.
 Supply Chain and Logistics
Management
1. Key transportation optimization techniques include:
1.Vehicle Routing Problem (VRP): VRP models determine the optimal routes
and schedules for a fleet of vehicles to deliver goods to multiple locations
while minimizing total transportation costs, distance traveled, or delivery
time.
2.Fleet Optimization: Fleet optimization models optimize the size and
composition of the transportation fleet, considering factors such as vehicle
capacity, fuel efficiency, driver availability, and regulatory constraints.
3.Mode Selection: Mode selection models determine the optimal
transportation mode (e.g., truck, rail, air, ocean) for shipping goods based
on factors such as cost, transit time, reliability, and environmental impact.
Quality Control and Process
Improvement
Examine the application of
management science in quality
control and process improvement.
Highlight the use of statistical
process control and Six Sigma
methodologies in enhancing
product quality.
 Quality Control and Process
Improvement
1. Statistical Process Control (SPC) is a method used to monitor and
control processes by analyzing statistical data to ensure they are
operating within specified limits and are capable of producing
products that meet quality standards.
2. Six Sigma uses a structured approach known as DMAIC (Define,
Measure, Analyze, Improve, Control) to systematically identify,
analyze, and improve processes to meet customer requirements and
organizational objectives.
Risk Analysis and Decision
Support Systems

Discuss the use of risk analysis and decision

support systems in management
science. Emphasize the role of probability
models and sensitivity analysis in
managing uncertainties.
 Risk Analysis and Decision
Support Systems
• Key steps in risk analysis include risk identification, risk
assessment, risk prioritization, risk mitigation, and risk
monitoring.

• Decision Support Systems (DSS) are computer-based tools and

models designed to assist decision-makers in analyzing complex
problems, evaluating alternative courses of action, and making
informed decisions.
Future Trends in Management Science

Explore emerging trends and

,
advancements in management
science including the integration of
big data analytics, artificial
intelligence, and machine learning
in decision-making processes.
 Conclusion: Applying
Management Science

Summarize the key takeaways

from the presentation and
emphasize the practical
applications of management
science in addressing real-world
business challenges. Encourage
further exploration of the field's
potential.
 Conclusion: Applying
Management Science

Summarize the key takeaways

from the presentation and
emphasize the practical
applications of management
science in addressing real-world
business challenges. Encourage
further exploration of the field's
potential.
Thanks!