MANAGEMENT SCIENCE(MS)

Seeks to describe, understand, and predict the behavior of complex systems of human beings and equipment. It provides accurate information on which decisions can be based. Mathematical and scientific techniques are used to construct models that forecast changes in the environment, predict the outcomes of various actions , and evaluate those outcomes.

CHARACTERISTICS OF MANAGEMENT SCIENCE

A decision-making focus Use of the scientific method Economic effectiveness Use of a mathematical model Reliance on computer A team approach A systems orientation

STEPS IN A MANAGEMENT SCIENCE PROJECT

DIAGNOSIS OF THE PROBLEM

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FORMULATION OF THE PROBLEM

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MODEL BUILDING

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ANALYSIS OF MODEL

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IMPLEMENTATION OF FINDINGS

PERCENT IMPLEMENTED

120 100

80 60 40 20
0

Column1

Manager Participated 100

Manager Did Not Participated 40

Ways Of Classifying MS Models

NORMATIVE MODEL describes what ought to be done. DESCRIPTIVE MODEL portrays things as they are.

TYPES OF MS MODELS
Linear

Programming Models widely used to determine the best way to allocate limited resources to achieve some desired end.
- Linear programming can be applied to those business and industrial operations where some maximum or minimum value can be derivedestablishing machine output, ideal inventory levels, best product-mix and the like.

TYPES OF MS MODELS
Queuing

or Waiting-Line Models are developed to help managers decide how long a waiting line would be most preferable.
(E.g. loading platform, supermarket check out counter)

TYPES OF MS MODELS
Game

Theory attempts to predict how rational people will behave in competitive situations. By analyzing what competitors are likely to do, in certain situations, game theorists can help managers develop effective strategies.

TYPES OF MS MODELS

Simulation Models are specifically designed to be used for problems that are too complex to be described or solved by standard mathematical equations. It can be speeded up (through the computer) to indicate within minutes what would occur in the real world over a period of years.
(e.g. testing of machine systems and largescale operations such as airports and training of space shuttle astronauts.)

Types Of Problems For Which MS Techniques Are Most Frequently Applied Inventory Problems As managers, we have to decide how much inventory to carry and when inventory needs to be replenished. To help decide, MS team will try to balance these conflicting cost tendencies by proposing an inventory program that will balance the need to satisfy customer demands against the need to maintain low ordering and carrying cost. MS technique/s: Linear programming and Simulation models can be used for this

Allocation Problems
Two Common types:
a. There are available resources :
Problem: Finding the best mix of available resources to perform a particular job.

b. No available resources:
Problem: Finding the most profitable product-mix. MS technique/s: Linear Programming.

Queuing(waiting-line) Problems
-

Involve designing facilities to meet a demand for services. MS technique/s: - Queuing models - Simulation techniques for complex cases

E.g. gas stations, checkout counters, airline booking services

Sequencing Problems
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Arise when we have to decide in what order the parts of a job are to be performed. The problem is to sequence the work stations in such a way that idle time is minimized and working time at all stations is roughly equalized. MS technique/s: Simulation which allows the efficiency of different sequences to be tested.

Routing(Scheduling) Problems
- Arise if we have to decide when(rather than in what order) parts of a job are to be done.
Problem: Which is the quickest, least expensive schedule of shipping an item from point A to B.

MS technique/s: Linear programming, queuing or combination of the two

Replacement Problems
Problem 1: To decide exactly when expensive items (machinery and trucks) must be replaced. Problem 2: For large number of inexpensive items (light bulbs),the problem is to decide whether to have each item replaced as it fails or to wait until set number fail and then have several items replaced simultaneously. MS technique/s: Linear programming, which suggests the least expensive replacement schedule.

Competition Problems

Develop when two or more organizations are trying to achieve inherently conflicting objectives.

Problem: finding strategies and decisions thet will maximize ones gains and minimize ones loses.

END OF THE PRESENTATION Thank You !!!