MANAGEMENT

SCIENCE
GROUP 2
Lhaiza Quilario
Aliyah Apiado
Carolyn Pascual
Aldren Gargoles
Paul Jhon Dela Cruz
 Lesson 2.1 FEATURES OF MANAGEMENT
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SCIENCE
Management science is characterized as a
managerial decision-making's focal point
because of the following:

(1) the implementation of the scientific approach

(2) the use of a systematic process to solve
problems
(3) the use of an interdisciplinary approach
(4) the utilization of mathematical tools
(5) the use of some software applications
 Lesson 2.1 FEATURES OF MANAGEMENT
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SCIENCE
Decision-making is the cognitive process of selecting a course of action, out of a set of
available alternatives, to achieve the goals of the organization. As a crucial
management responsibility, decision-making includes the following steps:

Step 1. Defining a problem

Step 2. Collecting information
Step 3. Identifying alternatives
Step 4. Weighing the alternatives
Step 5. Selecting the best possible option
Step 6. Planning and implementing
Step 7. Reviewing and evaluating the outcome
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SCIENTIFIC METHOD

The scientific method is the highest

standard in investigating the natural
world. Scientists correctly arrive at new
knowledge and update their previous
knowledge by using the scientific
approach. It consists of systematic
observation, measurement,
experiment, and the formulation of
questions or hypotheses
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Steps in SCIENTIFIC METHOD

Step 1. Formulate the question or hypothesis.

Step 2. Collect data.

Step 3. Test hypothesis.

Step 2. Draw a conclusion.

Using the scientific method on management problems is more

effective through the use of various methodologies/tools of
management science.
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A decision made by a department in

an organization can affect other
departments. Management science
enables a system approach that
views that all systems are comprised
of subsystems. Systems are divided
into three well-defined parts: inputs,
processes, and outputs. Outside the
system exist elements in the
environment: social, political, legal,
physical, economic, and
technological. Such elements can
have an effect on the performance of
the systems.
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There are problems that are too

simple and can be solved by trained
researchers, most especially those
who have training in management
science. However, there are instances
when a problem has several aspects
that require the attention of an
interdisciplinary team. Management
science enables some problems that
need to be solved through a team
approach.
 Several mathematical models were developed over the years to aid theDESIGN YOUR LIFE
management science analysis.–Turban and Meredith (1986)
The major reasons for using mathematical models are the following:

1. The advancement of technology has resulted to more alternatives. Sometimes the possible
solutions are infinite.

2. Mathematical models are easier to manipulate than the real system, making experimentation
easier.

3. The cost of blunders during the trial-and-error experiment will be lower when using
mathematical models.

4. Mathematical models allow managers to take advantage of calculated risks in the decision-
making process. This will minimize the uncertainty presented in the environment.

5. With the use of modeling analysis, the cost will be relatively lower compared to a similar process
done with the real system.

Management science advances with information technology, enabling businesses

to make quick, quantitative decisions, reducing manual labor and complexity in
complex management problems.
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TOOLS OF MANAGEMENT SCIENCE

ALLOCATION INVENTORY
MODEL MODEL
- Inventory models find the optimal inventory
-Allocation models optimize resource use for best level and timing for ordering.
results.
- The goal is to minimize costs like holding
-Mathematical programming tools help decision- inventory, ordering, and shortages.
makers allocate limited resources among
activities to achieve managerial goals. - These models help businesses manage
inventory efficiently and reduce expenses.
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TOOLS OF MANAGEMENT SCIENCE

COMPETITIVE
QUEUING MODELS MODELS
-Queuing models balance service levels and
customer wait times.
- The goal of this model is to
-They help manage waiting line problems by
considering arrival rates, queue structure, and
examine the outcome of this rivalry
service processes. in terms of profitability, price, and
other performance indicators.
-These models optimize customer satisfaction
and operational efficiency in queuing systems.
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TOOLS OF MANAGEMENT SCIENCE

NETWORK MODELS DYNAMIC MODELS

- Network models manage interconnected - Break big problems into smaller parts and
activities, like construction projects, to improve store solutions for later use.
coordination and resource use.

- They help organize subtasks effectively and - Memorize these solutions to avoid
ensure resources are used efficiently for repeating calculations for the same
successful project management. problems.
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TOOLS OF MANAGEMENT SCIENCE

MARKOV ANALYSIS
- helps predict how things will change over time.

DECISION MODEL
ANALYSIS
- Decision analysis models help managers choose the best options by
considering potential outcomes and returns.
- They guide businesses in making smart decisions that maximize benefits
and minimize risks.

FORECASTING

involves the prediction of the future under various scenarios.

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FEASIBLE SOLUTION NON-FEASIBLE SOLUTION

- A feasible solution in business meets all the - An infeasible solution in business fails to meet
requirements and conditions set by the problem or one or more of the requirements or constraints of
project. the problem.

NON-OPTIMAL
OPTIMAL SOLUTION SOLUTION

- A non-optimal solution in business is a feasible

- An optimal solution in business is the best
option that doesn't achieve the best result
possible outcome among all feasible options.
compared to other feasible options.
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UNIQUE
SOLUTION
-If there will be a single optimal solution, it will be
classified as a unique solution

MULTIPLE
SOLUTION
- Multiple solutions in business refer to having
several equally good options or outcomes that are
all considered optimal.
THANKS
FOR
YOUR
ATTENTION