Definition of the Problem: This step relates to the clear definition of the problem. Once it has been determined that a problem exists, the problem must be clearly and concisely defined. Improper defining of the problem may easily result in no solution or an inappropriate solution. Therefore the limits of the problem and the degree to which it pervades other units of the organisation must be included in the problem definition.
Model Construction: A management science model is an abstract representation of an existing problem situation. It can be in the form of a graph or chart, but most frequently a management science model consists of a set of mathematical relationships. Model Construction refers to development of these functional mathematical relationships that describe the decision variables, objective function and constraints of the problem.
Model Solution: Once models have been constructed, they are solved using the various management science techniques.
Model Implementation: The final step in the management science process for problem solving is described as Implementation. Implementation is the actual use of the model once it has been developed or the solution to the problem the model was developed to solve.
Step 1: Observation
Step 2: Decision Making Model Problem Definition:
Marie McCoy has committed to the local PTA to make some items for a bake sale on Saturday. She has decided to make some combination of chocolate cakes, loaves of white bread, custard pies, and sugar cookies. Thursday evening she went to the store and purchased 20 pounds of flour, 10 pounds of sugar, and 3 dozen eggs, which are the three main ingredients in all the baked goods she is thinking about making. The