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Management Science

Lecture

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Jumaway Jely Ann
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16 views

Management Science

Lecture

Uploaded by

Jumaway Jely Ann
Copyright
© © All Rights Reserved
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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Management Science

BA424
Management Science
• It is a tool used by managers and administrators in
the performance of their most vital task
• It is another term for operations research or decision
science
• It carries an immense option of tools to aid managers
when faced with decisions
Special Characteristics of Management Science

1.A primary focus on managerial decision-making


2.The application of the scientific approach to decision-making
3.The examination of the decision situation from a broad
perspective
4.The use of methods and knowledge from the several disciplines
5.A reliance on formal mathematical tools
6.The use of technology, such as computers, software, or
applications
Problem Solving
and
Decision Making
Problem Solving
• It is the process of identifying a
difference between the actual and the
desired state of affairs and then taking
action to resolve the difference.
Problem-solving Process
1.Identify and define the problem
2.Determine the set of alternative solutions
3.Determine the criterion or criteria that will be
used to evaluate the alternatives
4.Evaluate the alternatives
5.Choose an alternative
6.Implement the selected alternative
7.Evaluate the results to determine whether a
satisfactory solution has been obtained
Single-criterion decision problem is
problem in which the objective is to find the
best solution with respect to one criterion

Multi-criteria decision problems are


problems that involve more than one
criterion
Qualitative analysis and
Quantitative Analysis

• Qualitative analysis – is based primarily on the


manager’s judgment and experience
• Quantitative analysis - relies on statistical methods
and mathematical evaluation
Reasons why quantitative approach
might be used:
1. The problem is complex, and the manager cannot develop a
good solution without the aide 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
experience from which to draw
4. The problem is repetitive, and the manager saves time and
effort by relying on the quantitative procedures to make
routine decision recommendations
MODEL DEVELOPMENT
Models are representations of real objects or situations and
can be represented in various forms
• Iconic models are physical replicas (scalar
representations) of real objects.
• Analog models are physical in form, but do not physically
resemble the object being modeled.
• Mathematical models represent real world problems
through a system of mathematical formulas and
expressions based on key assumptions, estimates, or
statistical analyses.
• The value of the model-based conclusions and decisions is
dependent on how well the model represents the real
situation
• The more closely the model represents the situation the more
accurate the conclusions and predictions will be
e.g: the more closely the mathematical model
represents the company’s
true profit-volume relationship, the more accurate the
profit projections will be
• The success of the mathematical model and quantitative
approach will depend heavily on how accurately the objective
and constraints can be expressed in terms of mathematical
equations or relationships

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