1.

3 MANAGEMENT
SCIENCE
TECHNIQUES
1. Linear Programming

This is one of management science's best-known

tools. This strategy describes the problem as
maximizing a linear function (minimizing) with
reference to the set of linear constraints.

A linear programming model consists of certain

common components and characteristics. The model
components include decision variables, an objective
function, and model constraints.
 Model Formulation

(objective function)maximize Z = $40x₁ + $50x₂

subject to
(model constraints) x₁ + 2x₂ ≤ 40
(40 & 120 are parameters)
4x₁ + 3x₂ ≤ 120
(decision variables) x₁, x₂ ≥ 0
A maximization model
The steps in this formulation process are
summarized as follows:

Summary of LP model formulation Steps:

Step 1: Define the decision variables
Step 2: Define the objective function
Step 3: Define the constraints
2. Distribution Models
A distribution problem is a specific category of problem
in linear programming.
There are two major categories of distribution problems:
the problem of transportation, and the problem of
assignment.
The problem of transportation deals with shipping from a
variety of suppliers to a number of destinations while the
problem of assignment deals with determining the right one-
to-one option for any of a number of prospective
"candidates" to a number of possible "positions."
 3. Network Models

Many problems can be defined as a network (the

collection of nodes and arcs) in graphic terms. Typical
circumstance is a network of transports: cities (nodes)
are linked by roads (arcs) to each other.

The most critical factor of several problems,

addressed by the help of network models, is unit cost
and the aim is to find the lowest overall cost.
4. Project Management

Managers are responsible for organizing, managing

and overseeing projects in certain cases that consist of
several different jobs or activities undertaken by a number
of teams or persons.

It needs different time for a work to be completed.

These problems are overcome by two simple methods:
CPM (Critical Path Method) and PERT (Program
Evaluation and Review Technique). All approaches allow
the issue to be expressed on a network.
5. Decision Analysis

Decision analysis allows us to select a

decision from a set of possible decision
alternatives when uncertainties regarding
the future exist.
Decision Analysis cont.

Decision situations can be categorized into

two classes:

Situations in which probabilities cannot

be assigned to future occurrences and
situations in which probabilities can be
assigned.
6. Inventory Models

Inventory control is one of the most common

strategies, helping managers decide what to buy
and how much to buy. The primary purpose is
generally to strike an accurate balance between
the expense of keeping inventory and the cost of
implementing an order.
7. Waiting Line Models

This field of management science approaches

deals with the circumstances in which a variety of
networks (e.g. vendors) ought to represent units
( e.g. customers). Since the number of vendors is
constrained, some units must wait in queue for the
service. Thus the alternative name for the models of
the waiting line: Queuing Models.
Example of waiting line model
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