What is management science

Historical development of management

science
Characteristics of management science

Tools of management science

Managerial decision making

Areas of application
Management science is the
application of scientific method,
techniques, tools to problems
involving the operations of
systems so as to provide those
in control of operation with
optimum solution to problems
Application of the
scientific method to
analysis and solution of
managerial decision
making problems
1. Focus on managerial decision making
2. Application of the scientific approach
to managerial decision making
3. Examination of decision situation from
a broad perspective
4. Interdisciplinary methods and
knowledge
5. Reliance on mathematical and
quantitative models
6. Extensive use of computers
7. Problems and decisions are viewed
from system perspective
1. Scientific Management by F. W. Taylor
in late 19th century
2. Use of math models
3. Cross fertilization in science
4. Wartime use to industry
5. Public sector decision making
6. Operational efficiency
 Prognosis

Diagnosis Solution

Management
Scientist as
Consultants/Staff
Assistant
1. Standard tools for recurring decision
Linear programming, Integer
programming, dynamic programming
1. Borrowed tools
Statistical tools, forecasting, financial,
marketing, econometrics
1. Special tools for unique problems
Simulation
1. Systematic approach to decision making
2. Promote communication through experts
3. Permits thorough analysis of a large number of
alternative options
4. Evaluates situations with risk
5. Increase effectiveness in decision making
6. Quick and inexpensive explanation of
alternatives
7. Allow simulate the practical environment
1. Inventory control
2. Facility design
3. Product mix determination
4. Portfolio analysis
5. Scheduling and sequencing
6. Merger-growth analysis
7. Transportation planning
8. Design of information systems
9. Allocation of scare resources
10. Project planning and control
11. Pricing decisions
12. Credit policy analysis
 Manager Management Scientist

2. Classification
Real 1. Definition and
Life of the Conceptualizatio
Problem Problem n of the Problem

3. Formulation and
6. construction of the
Implementation mathematical model

Evaluation: 4. Solution of
5. Sensitivity
N Is solution the model
implementable Analysis
 Identification of the problem
 Classification and conceptualization of the
problem
 Model Formulation
 Solution of the model
 Sensitivity Analysis
 Implementation of the model
 Symptom VS causes
 Collection od data
 Time
 Subjective approach-OPM
 Future condition
 Programed and non-programmed
 Deterministic and Probabilistic problem
 State of certainty and uncertainty
 Types of model-Iconic, Analog, Mathematical,
Static and dynamic model.
 Model formulation
 Component of the model
 The result variable/Dependent variables
 Decision Variables (manipulable and controllable
 Analytical and numerical model
 Analytical model for direct result
 Numerical model –trial and error, step by step improvement
 Mathematical relationship-objectives and constraint
 Validity of the model
 Choice of a solution-optimization and sub-
optimization
 Select alternatives
 Generate alternatives
 Predict outcome of each alternatives
 Relate outcome to goal
 Compare the alternatives
 Select the best alternatives
 Classification of solutions
 Feasible and infeasible
 Optimum and non-optimum
 Unique and multiple
 Change the variables’ parameter to see the new
result
 Evaluation and Implementation