Management Science

Introductory Lecture

Md. Abdullah Al Mahmud

Senior Lecturer

Manarat International University

Lecturer in Charge

Md. Abdullah Al MahmudSenior Lecturer

Department of Business AdministrationManarat International University

Contact details:emrul151@yahoo.com

emahmud@manarat.ac.bdCell: 01718150263

Management Science

Introduction of the ClassCourse IntroductionFew Words on Lecture NotesIntroduction to Lecture

Methodology

Introduction & Overview

Code and Title: MIS-405 Management SciencePrerequisites: MGT-101, MGT-301, MAT-102

Textbook: “An Introduction to Management Science”-

Quantitative Approaches to Decision Making- 12th edition

-David R. Anderson, Dennis J. Sweeney, Thomas A. Williams, Kipp Martin

Reference book:

“ Introduction to Management Science”- 10th edition Bernard W. Taylor

The Course

What’s It All About?

Before we delve into management science-what it is, what it can be used for, and what it can not be used for-let us briefly look at the term -

“Management”

Management “Is a process used to achieve certain goals

through the utilization of resources”.

Resources-people, money, energy, materials, space, and time.

The resources are considered the inputs, and attainment of the goals the output of the process.

The ratio of outputs to inputs that measures the degree of success of an organization and its individual parts

The degree of success of the manager’s job is often measured by the productivity.

Productivity- a measure of success

Level of Productivity

The success of management or the level of productivity , depends primarily on the execution of certain managerial functions such as planning, organizing, directing and controlling.

To carry out these functions, managers engage in a continuous process of making decisions.

Therefore, management is considered by many as synonymous with decision making.

Decision Making-art or science

Art: Skill, dexterity, or the power of performing certain actions, acquired by experience, study, or observation;

Science: Science is a systematic activity that builds and organizes knowledge in the form of testable explanation and predictions about the world.

For years, managers have considered decision making to be a pure art-a talent acquired over a long period of time through experience (learning by trial and error).

It has been considered an art because a variety of individual styles can be used in approaching and successfully solving the same type of managerial problems in actual business practice.

These styles are often based on creativity, judgment, intuition, and experience rather than on systematic analytical approach.

Decision Making-art or science

However, the environment in which management must operate is changing.

Technological advancement is altering the manner in which organizations are structured and operate.

Such advances in technology cannot possibly be made or sustained without concurrent advances in the management of organizations.

Such unusual strides have been possible only because the art of management has increasingly been supplemented by science.

Decision Making-art or science

Factors Affecting Decision-Making

New technologies and better information distribution have resulted in more alternatives for management.

Complex operations have increased the costs of errors, causing a chain reaction throughout the organization.

Rapidly changing global economies and markets are producing greater uncertainty and requiring faster response in order to maintain competitive advantages.

Increasing governmental regulation coupled with political destabilization have caused great uncertainty.

Management Science

Management Science is the application of scientific methods, techniques and tools to problems involving the operations of systems so as to provide those in control of the operations with optimum solutions to the problems.

The application of the scientific method to the analysis and solution of managerial decision making problems.

An example to thinkWhen most of us go to the airport, we're busy

-- saying goodbye to mom and dad. Most of us don't pause to think about who planned all the systems we're passing through. Who decided when our flight would leave, from which gate, and what route it would travel? Who figured out which pilot and flight crew would be assigned to our airplane? Who set up the security checkpoints?

Course DescriptionManagement Science is a discipline that integrates

mathematical modeling and quantitative analysis into the managerial decision-making process.

A variety of models and approaches are introduced including: linear programming and optimization models (e.g., maximize profit or minimize cost problems, resource-allocation problems), network and transportation models (e.g., shortest route problems, critical path problems), forecasting models, PERT/CPM models (e.g., a model to determine the optimal schedule for a project), simulation models and the use of Crystal Ball, and simple/multiple regression models.

Course ObjectivesThe ability to make “intelligent”

decisions is critical for both managers and firms. In today’s business world, problems are too complex to rely simply on intuition and common sense. Quantitative decision tools such as management science allow decision makers to base decisions on data-driven and scientific methods.

Course Objectives Continued

This course prepares students-To apply the major techniques of management

science to analyze a variety of managerial problems.

To model problems mathematically and use this as input into an appropriate management science tool.

To develop an understanding of how to interpret the results of a management science study and use these results to implement better policies.

Grading & Marks DistributionGrading will be according to the

guidelines of the MIU BBA program as outlined in the BBA program bulletin. It will be based on homework assignments, exams and class participation. Though final grade will be calculated according to MIU outlined standard, I will evaluate your performance on the basis of following distribution.

Grading & Marks Distribution Continued

Evaluation Procedures

Class Attendance 10%

Home work assignments 5%

Case study & Presentation 5%

Report & Viva 10%

Class Test & Class Participation 10%

Mid-Term 20%

Final 40%

Total 100%

Attendance PolicyThe students will get 10 marks at the first

class of overall 24 classes. Each class contains 10/24=.416 mark. As 50% attendances is the minimum requirement for the course that’s why each absent will reduce student’s marks by 10/12=.83. That means if any student absent 50% of the class will get 0 marks, and the student whose attendance is below 50% will get negative marks. Besides the deduction policy, there will be 2 bonus marks for the students who have above 90% attendance.

Home work assignments

There will be 5 homework assignments in total, with more details about each assignment will be given in the site address. All assignments are mandatory and will count toward your final grade.

You may work on the homework assignments, including case studies, in a team of three students.

Case StudyThere will be three case assignments in the

course. Each case will also be discussed in the lecture immediately following the day in which the corresponding assignment is due. A detailed note on what we expect in your case write-ups will be posted on Site address at least one week before the first case assignment is due. Please be prepared to refer to your case write-up and participate fully in the case discussion.

Report

The course contains a project work or report. The guidelines about the project paper will be provided to the Site address prior to the project paper submission.

Class Test & Class Participation

There will be two class tests in the course, contains 5 marks each. One class test will be held before the midterm examination and the other one will be on before the final examination.

Beside these, the students who will participate in the class discussion will get bonus marks.

ExamsThere will be one mid-term and one final

exam. The final exam will emphasize material covered after the mid-term.

Absences from the final exam will be entertained only in cases of emergencies. The instructor must be notified before the exam if you will be unable to take it and will require documented proof. In such cases, a make-up exam will be rescheduled.

Be mentally Prepared to climb our voyage