Scribd
Upload
42 views14 pages

Management Science for Decision Makers

Management science is the application of scientific methods to managerial decision making. It uses formal models and techniques like linear programming, simulation, and forecasting to help solve complex management problems. Some common problems addressed include inventory control, facility design, scheduling, resource allocation, and investment decisions. The goal of management science is to help managers evaluate alternatives and select optimal courses of action for achieving organizational goals.

Uploaded by

Gela Soriano
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
42 views14 pages

Management Science for Decision Makers

Management science is the application of scientific methods to managerial decision making. It uses formal models and techniques like linear programming, simulation, and forecasting to help solve complex management problems. Some common problems addressed include inventory control, facility design, scheduling, resource allocation, and investment decisions. The goal of management science is to help managers evaluate alternatives and select optimal courses of action for achieving organizational goals.

Uploaded by

Gela Soriano
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd

Management Science

Rosalie M. Cabagay, MPA


Definition
The application of the scientific method to the analysis
and solution of managerial decision problems.
Characteristics
1. A primary focus on managerial decision making.
2. The application of the scientific approach to the
decision making process.
3. The examination of the decision situation from a
broad perspective; i.e. the application of a system
approach.
4. The use of methods and knowledge from several
disciplines.
5. A reliance on formal mathematical models.
6. The extensive use of computers.
Decision making
is a process of choosing between two or more available
alternative courses of action for the purpose of
attaining a specific goal. The conclusion of the process
is a decision.
Steps
a) Defining the problem.
b) Searching for alternative courses of action.
c) Evaluating the alternatives.
d) Selecting one alternative.
Model
A fundamental term of management science.
Kinds
Deterministic - all aspects are known with certainty
Probabilistic - contain a specific level of uncertainty
Modeling
It is the process of handling real-world problems and
describing them in mathematical terms.
Managerial Problems
The following list presents typical managerial problems
where management science techniques could be
applied:
Inventory control.
Facility design.
Product-mix determination.
Portfolio analysis.
Scheduling and sequencing.
Merger-growth analysis.
Transportation planning.
Managerial Problems
Design of information systems.
Allocation of scarce resources.
Investment decisions (new plants, etc.).
Project management – planning and control.
New product decisions.
Sales force decisions.
Market research decisions.
Research and development decisions.
Oil and gas exploration decisions.
Managerial Problems
Pricing decisions.
Competitive bidding decisions.
Quality control decisions.
Machine setup problems in production.
Distribution decisions.
Manpower planning and control decisions.
Credit policy analysis.
Research and development effectiveness.
Management Science Techniques
Linear Programming
Integer Linear Programming
Goal Programming
Distribution Models
Nonlinear Programming
Network Models
Project Management
Inventory Models
Management Science Techniques
Waiting Line Models
Simulation
Decision Analysis
Theory of Games
Forecasting
Multi-criteria Decision Making
Markov Analysis
Dynamic Programming

You might also like