Management
Science
Lecturer
Sihem Smida
Chapter 1
Introduction to
Management Science
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Outline
What is Management Science?
How to apply Management Science
technique?
Types of Management Science
Models/techniques
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Management Science
Management science uses a scientific
approach to solving management problems.
It is used in a variety of organizations to
solve many different types of problems.
It encompasses a logical mathematical
approach to problem solving.
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History of Management Science
 It was originated from two sources:
– Operational Research
– Management Information Systems
 It is thus more emphasizing on the analysis of
solution applications than learning their on how
models were derived.
 Other names for management science: quantitative
methods, quantitative analysis and decision
sciences.
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Management Science Theory
Contemporary approach to management that
focuses on the use of rigorous quantitative
techniques to help managers make maximum
use of organizational resources to produce
goods and services.
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Management Science Theory
– Quantitative management — utilizes
linear and nonlinear programming,
modeling, simulation, queuing theory and
chaos theory.
– Operations management —techniques
used to analyze any aspect of the
organization’s production system.
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Management Science Theory
– Total Quality Management (TQM) —
focuses on analyzing input, conversion,
and output activities to increase product
quality.
– Management Information Systems
(MIS) — provides information vital for
effective decision making.
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Steps in applying Management
Science techniques
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(1)
(2)
(3)
(4)
In practice, this
step is critical
(to p6)
(5)
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Steps
1.
2.
3.
4.
5.
Observation — Identification of a problem that exists in
the system or organisation.
Definition of the Problem — Problem must be clearly
and consistently defined showing its boundaries and
interaction with the objectives of the organisation.
Model Construction — Development of the functional
mathematical relationships that describe the decision
variables, objective function and constraints of the
problem.
Model Solution — Models solved using management
science techniques.
Model Implementation — Actual use of the model or its
solution.
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(to p9)
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Models to be considered in this subject
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Characteristics of Modeling Techniques
• Linear mathematical programming: clear objective;
restrictions on resources and requirements;
parameters known with certainty.
• Probabilistic techniques: results contain uncertainty.
• Network techniques: model often formulated as
diagram; deterministic or probabilistic.
• Forecasting and inventory analysis techniques:
probabilistic and deterministic methods in demand
forecasting and inventory control.
• Other techniques: variety of deterministic and
probabilistic methods for specific types of problems.
(to p11)
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