Introduction to Management Science
Chapter 1
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Introduction
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Chapter Contents: * -------------------------------------------------
Problem Solving and Decision Making * -------------------------------------------------
Development of Operations Research * -------------------------------------------------
The Nature of Management Science * -------------------------------------------------
Models
* -------------------------------------------------
The Management Science Approach * -------------------------------------------------
The Importance and Impact of Management Science * -------------------------------------------------
Models of Cost, Revenue, and Profit * -------------------------------------------------
Management Science Techniques
Management science, an approach to decision making based on the scientific method, makes extensive use of quantitative analysis. A variety of names exists for the body of knowledge involving quantitative approaches to decision making; in addition to management science, two other widely known and accepted names are operations research and decision science. Today, many use the terms management science, operations research, and decision science interchangeably. -------------------------------------------------
Learning Objectives
↗ After completing this chapter, you should be able to
↗ Define the term management science.
↗ Describe the nature of management science.
↗ Explain what a mathematical model is.
↗ Use a mathematical model to perform break-even analysis.
↗ Techniques of Management Science
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1.1 Problem Solving and Decision Making
Problem solving can be defined as the process of identifying a difference between the actual and the desired state of affairs and then taking action to resolve the difference.
For problems important enough to justify
-------------------------------------------------
Introduction
-------------------------------------------------
Chapter Contents: * -------------------------------------------------
Problem Solving and Decision Making * -------------------------------------------------
Development of Operations Research * -------------------------------------------------
The Nature of Management Science * -------------------------------------------------
Models
* -------------------------------------------------
The Management Science Approach * -------------------------------------------------
The Importance and Impact of Management Science * -------------------------------------------------
Models of Cost, Revenue, and Profit * -------------------------------------------------
Management Science Techniques
Management science, an approach to decision making based on the scientific method, makes extensive use of quantitative analysis. A variety of names exists for the body of knowledge involving quantitative approaches to decision making; in addition to management science, two other widely known and accepted names are operations research and decision science. Today, many use the terms management science, operations research, and decision science interchangeably. -------------------------------------------------
Learning Objectives
↗ After completing this chapter, you should be able to
↗ Define the term management science.
↗ Describe the nature of management science.
↗ Explain what a mathematical model is.
↗ Use a mathematical model to perform break-even analysis.
↗ Techniques of Management Science
-------------------------------------------------
1.1 Problem Solving and Decision Making
Problem solving can be defined as the process of identifying a difference between the actual and the desired state of affairs and then taking action to resolve the difference.
For problems important enough to justify
References: 1. Churchman, C. W., R. L. Ackoff, and E. L. Arnoff “ Introduction to Operations Researc”,. Wiley, 1957. 2. Horner, Peter. “The Sabre Story,” OR/MS Today (June 2000). Leon, Linda, Z. Przasnyski, and K. C. Seal. “Spreadsheets and 3. OR/MS Models: An End-User Perspective,” Interfaces (March/April 1996). 4. Powell, S. G. “Innovative Approaches to Management Science,” OR/MS Today (October 1996). 5. Savage, S. “Weighing the Pros and Cons of Decision Technology and Spreadsheets,” OR/MS Today (February 1997). 6. Winston, W. L. “The Teachers’ Forum: Management Science with Spreadsheets for MBAs at Indiana University,” Interfaces (March/April 1996). 7. Frederick, S. Hillier and Mark, S. Hiller “Introduction to Management Science” Tata McGraw-Hill (2nd ed, 2005) 8. Kapoor, V. K. “Operations Research”, Sultan Chand & Sons, (5th Edition, 2004) 9. William, J. Stevenson and Ceyhun, Ozgur “Introduction to Management Science”, Tata McGraw-Hill (2007) 10. David R. Anderson, Dennis J. Sweeney, Thomas A. Williams, Jeffrey D. Camm, and Kipp Martin, “An Introduction to Management Science”, South-Western (2012)