The Language of Mathematics in

Business Management
 Why Mathematics?
• In an age when the study of the heavens dominated scientific thought,
Galileo said, “The great book of nature can be read only by those who
know the language in which it was written. And this language is
mathematics.”

• Striking a similar note in a much later era, when the study of the inner
workings of the atom had occupied the minds of many scientists for a
generation, the Cambridge physicist John Polkinhorne wrote, in 1986,
“Mathematics is the abstract key which turns the lock of the physical
universe.”

• MANAGEMENT SCIENCE is the study of problems as

abstractions and the application of the resulting
theory to practical situations. Its two fundamental
disciplines are behavioral science and quantitative
methods.
methods
Prof R N Bhattacharya
 Why Mathematics?
• We use the Language of Mathematics in our Business
Problems. We formulate problems using the
mathematical symbols and assesses the
possible consequence of alternative course of
action, so that informed and effective decisions
can be taken.
• In Management studies, we concentrate only on
such areas of mathematics which would
help us solve our business problems.
• Often we have to interpret collected data (in
production, marketing, quality control, etc.). We
use various tools of Statistics to perform such
analysis. Prof R N Bhattacharya
Mathematics is FUN

Prof R N Bhattacharya
The Amazing Number 1,089
• Choose any three-digit number (where the units and hundreds
digits are not the same)
• Reverse the digits of this number you have selected
• Subtract the two numbers (naturally, the larger minus the
smaller)
• Once again, reverse the digits of this difference
• Now, add your last two numbers
• The result will be 1089
• Example:
Chosen - 825
Reversed - 528
Subtracted - (825-528 = 297)
Reversed – 792
added - (297 + 792 = 1089).
Prof R N Bhattacharya
 The Amazing Number 1,089
• Let us look at the first nine multiples of 1,089:
• 1089 x 1 = 1089
• 1089 x 2 = 2178
• 1089 x 3 = 3267
• 1089 x 4 = 4356
• 1089 x 5 = 5445
• 1089 x 6 = 6534
• 1089 x 7 = 7623
• 1089 x 8 = 8712
• 1089 x 9 = 9801
• Do you notice a pattern among the products? Look at the first
and ninth products. They are the reverses of one another. The
second and the eighth are also reverses of one another. And so the
pattern continues, until the fifth product is the reverse of itself,
Prof R N Bhattacharya
known as a palindromic number.
 The Endless Loop
1. Select a four-digit number (except one that has all digits
the same).
2. Rearrange the digits of the number so that they form
the largest number possible.
3. Then rearrange the digits of the number so that they
form the smallest number possible.
4. Subtract these two numbers (obviously, the smaller
from the larger).
5. Take this difference and continue the process from step
2, over and over and over, until you notice something
interesting is happening. Don’t give up before
something unusual happens. Prof R N Bhattacharya
 The Endless Loop
Eventually, you will arrive at the number 6,174, perhaps after one
subtraction or after several subtractions. When you do, you will find
yourself in an endless loop.
EXAMPLE:
select the number 3,203. The largest number formed with these
digits is 3,320 and the smallest number formed with these digits is
0,233.
The difference is 3,087.
The largest number formed with these digits is 8,730 and the
smallest number formed with these digits is 0,378.
The difference is 8,352.
The largest number formed with these digits is 8,532 and the
smallest number formed with these digits is 2,358.
The difference is 6,174.
The largest number formed with these digits is 7,641 and the
smallest number formed with these digits is 1,467. Prof R N Bhattacharya
Mathematics is a Language

Prof R N Bhattacharya
 Mathematics is a Language
• Consider the following English sentence:
If a straight line be cut at random, the square on
the whole is equal to the squares on the segments
and twice the rectangle contained by the segments.
(Euclid, Elements, II.4, 300 B.C.)

a b

(a + b)2 = a2 + b2 + 2ab
Prof R N Bhattacharya
 Mathematics is a Language
• Look at the mathematical sentence closely:
(a + b)2 = a2 + b2 + 2ab
Adjective

Verbs = Operators

The nouns “a” and “b” are connected in a

sentence using verbs (operators +, =) and
adjective (parameter, the number 2)

Prof R N Bhattacharya
How humanity developed the
language of mathematics

Prof R N Bhattacharya
 How humanity developed the
language of mathematics
Stage 1
• 400 BC : counting, Alphabet, music
• Perception : Discreteness (sensation)
• Reality : Distinction
• Tool : Number (Arithmetic)
• Action : Counting

Prof R N Bhattacharya
 How humanity developed the
language of mathematics
Stage 2
• 300 BC : Euclid
• Perception : Continuity (feeling)
• Reality : Smoothness
• Tool : Space (Geometry)
• Action : Measuring

Prof R N Bhattacharya
 How humanity developed the
language of mathematics
Stage 3
• 1600 AD : Renaissance Perspective
• Perception : Similarity (thinking)
• Reality : Resemblance
• Tool : Logic (Algebra)
• Action : Measuring

Prof R N Bhattacharya
 How humanity developed the
language of mathematics
Stage 4
• 1700 AD : Kepler, Newton, Galilio
• Perception : Endlessness (intuition)
• Reality : No Boundary
• Tool : Infinity (Calculus)
• Action : Intuiting

Prof R N Bhattacharya
An Example of how fundamental concept
of continuity helps in decision making:

Unless the discontinuity is known through calculus, it will

never be possible to navigate along the curve path.
Prof R N Bhattacharya
A Furniture Manufacturing Company
• A furniture company manufactures chairs tables. Each type requires different
amounts of construction time and painting time, as given in the table below. The
company wants to know how many of each type must be produced in order to
maximize profit.

Tables (X1) Chairs (X2) Hours Available

(per table) (per chair)
Profit Contribution Rs.7 Rs.5

Carpentry 3 hrs 4 hrs 2400

Painting 2 hrs 1 hr 1000

Other Limitations:
• Make no more than 450 chairs
• Make at least 100 tables
Prof R N Bhattacharya
Decision Variables:
Let
X1 = Number of tables to make
X2 = Number of chairs to make
Objective Function: Maximize Profit
Maximize 7 X1 + 5 X2
Constraints
• Have 2400 hours of carpentry time available
3 X1 + 4 X2 < 2400 (hours)
• Have 1000 hours of painting time available
2 X1 + 1 X2 < 1000 (hours)
More Constraints: Non negativity:
• Make no more than 450 chairs Cannot make a negative number of
chairs or tables
X2 < 450
X1 > 0
• Make at least 100 tables
X2 > 0
X1 > 100
Prof R N Bhattacharya
 Model Summary
Maximize 7 X1 + 5 X2 (profit)
Subject to the constraints:
3 X1 + 4 X2 < 2400 (carpentry hrs)
2 X1 + 1 X2 < 1000 (painting hrs)
X2 < 450 (max # chairs)
X1 > 100 (min # tables)
X1, X2 > 0 (non negativity)
Prof R N Bhattacharya
 Example -Queueing Systems
• model processes in which customers arrive.
• wait their turn for service.
• are serviced and then leave.

Prof R N Bhattacharya
 Examples

• supermarket checkouts stands.

• world series ticket booths.
• doctors waiting rooms etc..

Prof R N Bhattacharya
 Queue Model

Number of arrivals are Service time is Stochastic

Stochastic – (usually – (usually exponential
Poisson distribution) distribution)

You will need the language of probability distributions to

solve such queueing business problems.
 Inventory Control Problems
• The basic issue in most of the inventory
control problems is to determine an
optimum order quantity at which the
TOTAL COST is minimum.
• In order to determine this MINIMUM total
cost point, we need the language of
CALCULUS.
CALCULUS

Prof R N Bhattacharya
Balancing Carrying against Ordering Costs
Annual Cost ($)

Minimum
Higher

Total Annual
Stocking Costs
Total Annual
Stocking Costs
Annual
Carrying Costs
Annual
Lower

Ordering Costs
Order Quantity
Smaller EOQ Larger

Prof R N Bhattacharya
Using Statistical tools for business
decisions

Prof R N Bhattacharya
 Cell Phones for Children?
• University of Washington scientist states 70-80%
of the energy emitted from the antenna of a mobile
phone is absorbed in the head: Children’s skulls are
thinner and their growing brains may be much
more susceptible to radiation exposure.

• FDA states that scientific evidence does not show a

danger to users of wireless communication devices
including children.
Prof R N Bhattacharya
 Study of Cell Phone Safety
• What is the outcome?
• What is exposure/risk factor?
• How can we assess relationship between cell phone
use and health outcomes?
– Study Design
– Data Collection and Analysis
– Interpretation/Attribution

Prof R N Bhattacharya