Table of Contents

Introduction to Management Science...............................................................1

>> Learning Objectives.................................................................................1
>> Management Science..............................................................................1
>> Frederick W. Taylor (1856-1915).............................................................1
>> Historical Development of Management Science...................................1
>> Problem Solving.......................................................................................1
>> An Alternate Classification of the Decision Making Process...................2
Introduction to Management Science ++ numerous methodological
developments (e.g., simplex method for
>> Learning Objectives (Part 1) solving linear programming problems)
1. Describe management science and its
historical development.  for effectivity, efficiency, and no
accidents of goods and services
++ must make decide in quantities
++ a virtual explosion in computing power
++ some problems are solved by art, not
by science
2. Explain the different steps in problem solving >> Problem Solving
and decision making. - 7 steps of Problem Solving:
++ decision making: first 5 steps ++ first 5 steps are the process of decision
++ problem solving: next 2 steps making

3. Relate quantitative analysis and decision ++ the 7 steps are the process of decision
making. making

++ quantitative analysis: applies if 1. Define the problem.

repetitive, high amounts of money, or it 2. Determine the set of alternative solutions.
includes new problems (ex. can AI replace 3. Determine the criteria for evaluating
CPAs) alternatives.
4. Evaluate the alternatives. (remove the
average rating in interpreting the data,
consider the extremes rating)
>> Management Science 5. Choose an alternative (make a decision).
- a body of knowledge that uses quantitative
approaches to decision making (Anderson et al., ----------------------------------------------------------
2019) 6. Implement the decision.
++ to have optimum solution, not the best 7. Evaluate the results.
decision - example:
- aka Operations Research, Decision Science,
Quantitative Methods, Quantitative Analysis, and
Business Analytics (Taylor, 2006)
++ Operations Research is the new
Business Analytics
++ must decide quantitatively

>> Frederick W. Taylor (1856-1915)

- Founder of Management Science
- his era marks the beginning of the explosion of
Management Science
++ human labor is eventually replaced
with machineries

>> Historical Development of

Management Science
- started during World War II period
++ business, industry, and science is
constantly evolving
- is flourishing in business and industry due to:
 relationships that exist in the
problem (will often need an expert)
- analyst will use one or more
quantitative methods to make a
recommendation (will use
management science techniques to
offer recommendations)

>> The Role of Qualitative and

Quantitative Analysis

>> An Alternate Classification of the

Decision-Making Process
Implementation of Evaluation of
→
alternative alternative
>> Quantitative Analysis and
Decision-Making
- potential reasons for a quantitative analysis
approach to decision-making
• the problem is complex
- problems in which the objective is to find the
best solution with respect to one criterion are ++ there’s no one rule to answer it
referred to as single-criterion decision • the problem is very important
problems
++ involves human being
- problems that involve more than one criterion
are referred to as multicriteria decision • the problem is new
problems
• the problem is repetitive
a. Qualitative Analysis
- subjective
>> Learning Objectives (Part 2)
- based largely on the manager’s 1. Define the quantitative analysis process
judgment and experience (seeking
experiences from people) 2. Identify the different management science
techniques
- includes the manager’s intuitive
“feel” for the problem ++ to give prescriptions

- is more of an art than a science

b. Quantitative Analysis >> Quantitative Analysis Process
- procedures for finding the “best” or optimal
- objective
solution/s (Anderson et al., 2019)
- analyst will concentrate on the
1. Model Development
quantitative facts or data
associated with the problem (you - models are representations of real objects or
have repetitive data) situations
- must model the problem correctly and it needs
- analyst will develop mathematical
to be close enough to the perfect answer
expressions that describe the
objectives, constraints, and other
 a. Iconic models: physical replicas
(scalar representations) of real objects)
b. Analog models: physical in form, but
do not physically resemble the object
being modeled; mostly measuring tools;
more abstract than iconic model (ex.
house blueprint, organizational chart,
maps, stock market chart, speedometer,
thermometer)
c. Mathematical models: represent real
world problems through a system of
mathematical formulas and expressions
based on key assumptions, estimates, or
statistical analyses (linear regression/trend
projection, linear programming)
2. Data Preparation
-
3. Model Solution
-
4. Report Generation
- sell your solution