Chapter 2: Introduction to Management Science

Question 1

is the broad interdisciplinary study of problem solving and decision making in human organizations, with strong links to management, economics, business, engineering, management consulting, and other fields.

Answer 1

Management Science

Question 2

A problem-solving process used by an interdisciplinary team to develop mathematical models that represent simple-to-complex functional relationships and provide management with a basis for decision-making and a means of uncovering new problems for quantitative analysis.

Answer 2

Management Science

Question 3

Management Science centered around:

Answer 3

-Accurate management decision
-Optimal Solutions

Question 4

one that’s made deliberately and considerately, include important factors

Answer 4

Accurate Management Decision

Question 5

most feasible solution where the objective function reaches the
maximum value

Answer 5

Optimal Solutions

Question 6

turning raw data into useful information

Answer 6

Data mining

Question 7

systematic, quantitative, and visual approach to make decision

Answer 7

Decision analysis

Question 8

-concerned with design, building, use of engines, machines, and structures
-links to MS in the form of quantitative analysis and mathematical modeling.

Answer 8

Engineering

Question 9

techniques that use historical data as inputs to make informed estimates that are predictive

Answer 9

Forecasting

Question 10

-important economic principle
-the study of ways in which economic agents produce outcomes with respect to preferences and utility.

Answer 10

Game theory

Question 11

involves optimization of complex processes, systems, or organization by developing, improving, and implementing integrated systems of people, money, knowledge, equipment, etc.

Answer 11

Industrial engineering

Question 12

How organizations resources are acquired, stored, and transported to their final destination.

Answer 12

Logistics Management

Question 13

system using mathematical concept and languages for management problems.

Answer 13

Mathematical modeling

Question 14

action of making the best or most effective use of situation and resources

Answer 14

Optimization

Question 15

measuring or favorable cases from the whole number of case possible

Answer 15

Probability and Statistics

Question 16

leading the work of a team to achieve goals and meet success criteria at specified time.

Answer 16

Project Management

Question 17

Focuses on efficacy of individuals, groups and organizations in the workplace.

Answer 17

Managerial Psychology

Question 18

assessing the current or predict the future performance of a business process using management science tools

Answer 18

Simulation

Question 19

management science tools: network programming, goal programming,
transportation, trans shipment.

Answer 19

Social Network

Question 20

study of development and functioning of human society

Answer 20

Sociology

Question 21

management of flows of services including managing of raw materials.

Answer 21

Supply Chain Management

Question 22

practice of organizations for them to improve their performance

Answer 22

Management Consulting

Question 23

-accomplishing desired goals and objectives using available resources efficiently and effectively
-management science tools: Linear programming – optimal solution – how much product to produce to have good profit?

Answer 23

Management

Question 24

-making money by producing, selling or reselling product.
-management science tools:
Project Management, Network and Distribution Models, and Linear Regression Analysis.

Answer 24

Business

Question 25

-social science concerned with the production, distribution, and consumption of goods and services. -management science tools: Theory of Games, Pareto Analysis, Prisoner’s Dilemma, Nash Equilibrium, etc.

Answer 25

Economics

Question 26

Father of Scientific Management

Answer 26

Frederick Winslow Taylor

Question 27

Historical Development of Management Science

Answer 27

Scientific Management → Operations Research → Management Science

Question 28

Taylor developed his 4 Principles of Management

Answer 28

➢ Research – science, not the rule of thumb. ➢ Standardization – match workers to their capabilities rather than assigning just any job. ➢ Control – monitor worker performance and provide instruction. ➢ Cooperation – allocate the work, the division of labor.

Question 29

year when the system included cost accounting, time study, inventory control, production control, planning, output scheduling, functional operation, standardized procedures, a mnemonic system of classification, and means for maintaining quality production.

Answer 29

1905

Question 30

ten years just after World War II

Answer 30

The rise of management science under the name of operations research

Question 31

Pioneers of Scientific Management

Answer 31

-Frederick Winslow Taylor -Carl Barth -Henry Lawrence Gantt -Sanford Thompson -Horace Hathaway

Question 32

one of the foreman of scientific management who improved and popularized the industrial use of compounds slide rules.

Answer 32

Carl George Barth

Question 33

American mechanical engineer and management consultant who contributed in the studies of industrial efficiency, task and bonus system, and social responsibility of business

Answer 33

Henry Lawrence Gantt

Question 34

CHARACTERISTICS OF MANAGEMENT SCIENCE

Answer 34

1) Examine Functional Relationship from System Overview 2) Use the Interdisciplinary Approach 3) Uncover New Problems to Study 4) Use Modeling Process Approach to Perform problem Solving 5. A primary focus on managerial decision-making. 6. The application of science to decision-making. 7. A dependence on electronic computers. 8. An appraisal resting on criteria of economic effectiveness.

Question 35

Management Science techniques could be applied:

Answer 35

* Inventory control * Facility design * Product-mix determination * Portfolio analysis * Scheduling and sequencing * Merger-growth analysis * Transportation planning * Design of information systems * Allocation of scarce resources * Investment decisions (new plants, etc.) * Project management – planning and control * New product decisions Sales force decisions * Market research decisions * etc

Question 36

Applications of Management Science

Answer 36

-Decision Analysis -Forecasting -Project Management -Linear Programming -Inventory Models -Distribution Models -Network Models -Markov Analysis -Theory of Games -Goal Programming

Question 37

to select optimal strategies out of several decision alternatives

Answer 37

Decision Analysis

Question 38

support the manager’s prediction of future aspects of a business operation.

Answer 38

Forecasting

Question 39

planning, scheduling and controlling projects that consist of many separate jobs or tasks performed by a variety of departments or individuals.

Answer 39

Project Management

Question 40

2 Basic Method of Project Management

Answer 40

-CPM (Critical Path Method) -PERT (Program Evaluation Review Technique)

Question 41

defines the problem as the maximizing (minimizing) a linear function, respecting the set of linear constraints.

Answer 41

Linear Programming

Question 42

to find a proper balance between the inventory holding cost and the cost of executing an order.

Answer 42

Inventory Models

Question 43

a special type of linear programming.

Answer 43

Distribution Models

Question 44

Types of Distribution Problems

Answer 44

-Transportation Problem -Assignment

Question 45

deals with shipments from a number of sources to a number of destinations

Answer 45

Transportation Problem

Question 46

deals with finding the best one of the possible “candidates” to a number of proposed “positions”

Answer 46

Assignment

Question 47

to find the minimal distance from one city to all other cities.

Answer 47

Network Models

Question 48

used to describe the behavior of a system in a dynamic situation (evolution of the system throughout the time).

Answer 48

Markov Analysis

Question 49

an extension of decision analysis to the situations with two or more decision makers.

Answer 49

Theory of Games

Question 50

a special technique for dealing with such cases, usually within the framework of linear programming

Answer 50

Goal Programming

Question 51

Decision Making Process

Answer 51

1. Identify the decision 2. Gather relevant information 3. Identify the alternatives 4. Weigh the evidence 5. Choose among alternatives 6. Take action 7. Review your decision & its consequences

Question 52

Analysis Phase of Decision Making Process

Answer 52

-Qualitative Analysis -Quantitative Analysis

Question 53

based primarily on the manager's judgement and experience; it includes the manager's intuitive “feel” for the problem and is more an art than a science.

Answer 53

-Qualitative Analysis

Question 53

will concentrate on the quantitative facts or data associated with the problem and develop models or mathematical expressions that describes the objectives, constraints, and other relationships that exist in the problem.

Answer 53

-Quantitative Analysis