Chapter 2: Introduction to Management Science

is the broad interdisciplinary study of problem solving and decision making in human organizations, with strong links to management, economics, business, engineering, management consulting, and other fields.

A problem-solving process used by an interdisciplinary team to develop mathematical models that represent simple-to-complex functional relationships and provide management with a basis for decision-making and a means of uncovering new problems for quantitative analysis.

Management Science centered around:

one that’s made deliberately and considerately, include important factors

most feasible solution where the objective function reaches the maximum value

turning raw data into useful information

systematic, quantitative, and visual approach to make decision

-concerned with design, building, use of engines, machines, and structures -links to MS in the form of quantitative analysis and mathematical modeling.

techniques that use historical data as inputs to make informed estimates that are predictive

-important economic principle -the study of ways in which economic agents produce outcomes with respect to preferences and utility.

involves optimization of complex processes, systems, or organization by developing, improving, and implementing integrated systems of people, money, knowledge, equipment, etc.

How organizations resources are acquired, stored, and transported to their final destination.

system using mathematical concept and languages for management problems.

action of making the best or most effective use of situation and resources

measuring or favorable cases from the whole number of case possible

leading the work of a team to achieve goals and meet success criteria at specified time.

Focuses on efficacy of individuals, groups and organizations in the workplace.

assessing the current or predict the future performance of a business process using management science tools

management science tools: network programming, goal programming, transportation, trans shipment.

study of development and functioning of human society

management of flows of services including managing of raw materials.

practice of organizations for them to improve their performance

-accomplishing desired goals and objectives using available resources efficiently and effectively -management science tools: Linear programming – optimal solution – how much product to produce to have good profit?

-making money by producing, selling or reselling product. -management science tools: Project Management, Network and Distribution Models, and Linear Regression Analysis.