Management Science approach
1
Management Science - Ans>>- adapts scientific approach for problem
solving to help managers make informed decisions
- "Quantitative Analysis", "Operations Research", etc.
Goal of Management Science - Ans>>- recommend course of action that is
expected to yield best outcome with what is available
MS Steps to Problem Solving - Ans>>1) Measureable evidence from practice
2) Quantitative analysis
3) Meaningful info
4) Rational Managerial Decision-making
Math models - Ans>>- set of math relationships (equations and inequalities)
- contain variables and parameters
math representation of a situation that are...
- realistic
-solvable
- understandable
Advantages of math models - Ans>>- accurately represent reality
- help decision maker formulate problems
- give insight and info
- save time and money in decision making and problem solving
- model may be only way to solve large/complex problems in timely fashion
- used to communicate problems and solutions to others
Quantitative factors - Ans>>- data that can be accurately calculated
EX: diff investment alternatives, interest rates, inventory levels, demand,
labor cost
Qualitative factors - Ans>>- difficult to quantify, but affect decision process
, EX: weather, state and federal legislation, tech breakthroughs
Limitations of QA - Ans>>- the qualitative factor: factors that are difficult to
quantify but affect decision process
- solution highly dependent on the model used; must choose right model
Why MS is important - Ans>>- complexity of business environment
- production/operations management
- supply chain management
- business analytics
Business Analytics - Ans>>- data-driven approach to decision making
- large amounts of data using IT
- statistical and QA are used to analyze data and provide useful info
3 types of BA - Ans>>1) Descriptive analytics: study and consolidation of
historical data
2) PRedictive analytics: forecasting future outcomes based on patterns in
past data
3) Prescriptive analytics: use of optimization methods *QA most frequently
used in this*
The MS Approach Steps - Ans>>1) Develop problem
2) Develop model
3) Acquire input data
4) Develop solution
5) Test solution
6) Analyze results *Start over at 2 if necessary
- varied time lengths
- might start some stages together
- not always this exact order; sometimes iterations
1) Define problem - Ans>>- given directions and meanings of following steps
- symptoms --> clear and concise statement
1
Management Science - Ans>>- adapts scientific approach for problem
solving to help managers make informed decisions
- "Quantitative Analysis", "Operations Research", etc.
Goal of Management Science - Ans>>- recommend course of action that is
expected to yield best outcome with what is available
MS Steps to Problem Solving - Ans>>1) Measureable evidence from practice
2) Quantitative analysis
3) Meaningful info
4) Rational Managerial Decision-making
Math models - Ans>>- set of math relationships (equations and inequalities)
- contain variables and parameters
math representation of a situation that are...
- realistic
-solvable
- understandable
Advantages of math models - Ans>>- accurately represent reality
- help decision maker formulate problems
- give insight and info
- save time and money in decision making and problem solving
- model may be only way to solve large/complex problems in timely fashion
- used to communicate problems and solutions to others
Quantitative factors - Ans>>- data that can be accurately calculated
EX: diff investment alternatives, interest rates, inventory levels, demand,
labor cost
Qualitative factors - Ans>>- difficult to quantify, but affect decision process
, EX: weather, state and federal legislation, tech breakthroughs
Limitations of QA - Ans>>- the qualitative factor: factors that are difficult to
quantify but affect decision process
- solution highly dependent on the model used; must choose right model
Why MS is important - Ans>>- complexity of business environment
- production/operations management
- supply chain management
- business analytics
Business Analytics - Ans>>- data-driven approach to decision making
- large amounts of data using IT
- statistical and QA are used to analyze data and provide useful info
3 types of BA - Ans>>1) Descriptive analytics: study and consolidation of
historical data
2) PRedictive analytics: forecasting future outcomes based on patterns in
past data
3) Prescriptive analytics: use of optimization methods *QA most frequently
used in this*
The MS Approach Steps - Ans>>1) Develop problem
2) Develop model
3) Acquire input data
4) Develop solution
5) Test solution
6) Analyze results *Start over at 2 if necessary
- varied time lengths
- might start some stages together
- not always this exact order; sometimes iterations
1) Define problem - Ans>>- given directions and meanings of following steps
- symptoms --> clear and concise statement
