Management Science
Introduction to Management Science
Management - managing the organization
Science - Analytical, systematic way
Management science - is defined as helping people make
better decisions. It is also known as Operational Research.
It applies advanced analytical methods to business
decision problems
History of Management Science
United Kingdom World War II (1939-1945)
The UK government applies science in fighting a
war. They use the knowledge of different scientists
in their respective fields to know what is the most
effective strategies are to use, especially for
military defense. With this, the UK won.
1948
Operational Research Club of Great Britain.
They continue the operational research.
1953
Operational Research Club becomes OR Society.
It became a society, and it expanded. Its focus
is not only in military defense anymore but also
in economics, financial problem, and etc. Many
countries also started to adapt management
science.
1951
First Masters and Pd.D academic programmes in
OR were established at Case Institute, Cleveland
Ohio
1959
International Federation of Operational
Research societies was founded
Management Science Applications
Assignment
•assign resources to
specific tasks.
•to minimized costs or
maximize return or
profit
Data Mining
• collection of data and
data analysis
Financial Decision Making
•credit scoring
• portfolio management
Foreca sting
• predicting future
quantitatively and
qualitatively
Logistics
•organization's supply
chain
Networks
•interconnected group
or system of things
• network to function
effectively
Management Science Applications
Marketing
• mixture of different
marketing strategy.
Optimization
• bring out the best
• maximize profit
• minimize cost
Project Planning and
Management
•project scheduling
Queueing
•waiting in lines
Simulation
• use of tools to analyze
outcomes
Transportation
• transfer from one place to
another
MS Approach
Step 1: problem recognition
• realize that a problem exists that requires a decision
• monitoring and observation
Step 2: problem structuring and definition
• structure the problem
• problem is properly understood
• define the problem to be investigated and agree the overall
purpose and specific aims
• client should be involved
Step 4: solutions and recommendations
• offer solutions and recommendations
• manager still has the final say
Step 5: implementation
• managerial action but with guidance of management scientist
• include users throughout the modeling processes
