MANAGEMENT SCIENCE Applications:

(Introduction to Management Science) Applications of management science are abundant in industries such as airlines,
manufacturing companies, service organizations, military branches, and in
Management science (MS) government. Management science has contributed insights and solutions to a vast
- is the broad interdisciplinary study of problem solving and decision making range of problems and issues, including:
● scheduling airlines, both planes and crew
in human organizations
● deciding the appropriate place to site new facilities such as a warehouse or
Links:
factory
Business
● managing the flow of water from reservoirs
Economics
● identifying possible future development paths for parts of the
Engineering telecommunications industry
Management ● establishing the information needs of health services and appropriate
Management Consulting systems to supply them
● identifying and understanding the strategies adopted by companies for their
❖ It uses various scientific quantitative techniques to improve an information systems
organization's ability to enact rational and accurate management decisions
by arriving at optimal or near optimal solutions to complex decision Overview of the Topics
problems.
❖ Management science helps businesses to achieve goals using various I. Linear Programming
scientific methods. - is a mathematical procedure of determining linear allocation of
business variables. For constructing linear program following
factors are essential:
Overview:
● The objective function needs to be linear.
Management science is concerned with a number of different areas of study:
● The objective must be to either maximize or minimize a
linear function.
1. One is developing and applying models and concepts that may prove useful
● The constraints in the program should also be linear.
in helping to illuminate management issues and solve managerial problems.
In formulating a linear program certain variables are integer in nature, such
The models used can often be represented mathematically, but sometimes
as a function with integer variable is known as integer programming.
computer-based, visual or verbal representations are used as well or instead.
2. Another area is designing and developing new and better models of
II. Decision analysis
organizational excellence.
- can be used to determine an optimal strategy when a decision
maker is faced with several decision alternatives and an uncertain
History
Its origins can be traced to operations research, which became influential or risk-filled pattern of future events
during World War II when the Allied forces recruited scientists of various disciplines Classifying decision-making criteria
to assist with military operations. In these early applications, the scientists used ● Decision making under certainty.
simple mathematical models to make efficient use of limited technologies and ● The future state-of-nature is assumed known.
resources. The application of these models to the corporate sector became known as ● Decision making under risk.
management science. ● There is some knowledge of the probability of the states of nature
In 1967 Stafford Beer characterized the field of management science as "the occurring.
business use of operations research".
● Decision making under uncertainty.
 ● There is no knowledge about the probability of the states of nature
occurring.

Decision Tree
- In a certain decision-making process, probability plays an
important role. On the decision model based upon probability is
decision trees.

III. Forecasting
- is the process of making predictions of the future based on past and
present data and most commonly by analysis of trends. A
commonplace example might be estimation of some variable of
interest at some specified future date. It refers to formal statistical
method employing time series, cross-sectional or longitudinal data,
or alternatively to less formal judgmental methods.
● Forecasting starts with certain assumptions based on the management's
experience, knowledge, and judgment. These estimates are projected into the
coming months or years using one or more techniques such as Box-Jenkins
models, Delphi method, exponential smoothing, moving averages,
regression analysis, and trend projection.
COST ACCOUNTING AND CONTROL

COST ACCOUNTING AND CONTROL

COST ACCOUNTING AND CONTROL

Cura, Queeny A.
BSA-2B

Yabut, Jed Angela T.

BSA-2B

Ag uilar, Marianne
BSA-2B