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MANAGEMENT SCIENCE(MS)

- Seeks to describe, understand, and predict thebehavior of complex systems of human beingsand equipment.

- It provides accurate information on whichdecisions can be based.

- Mathematical and scientific techniques areused to construct models that forecast changesin the environment, predict the outcomes ofvarious actions , and evaluate those outcomes.

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CHARACTERISTICS OF

MANAGEMENT SCIENCE

A decision-making focus

Use of the scientific method

Economic effectivenessUse of a mathematical model

Reliance on computer

A team approachA systems orientation

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STEPS IN A MANAGEMENT SCIENCE PROJECT

DIAGNOSIS OF THE PROBLEM

FORMULATION OF THE PROBLEM

MODEL BUILDING

ANALYSIS OF MODEL

IMPLEMENTATION OF FINDINGS

FEED BACK

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ManagerParticipated

Manager Did NotParticipated

Column1 100 40

0

20

40

60

80

100

120

PERCE

NTIMPLEMENTED

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Ways Of Classifying MS Models

NORMATIVE MODEL describes what

ought to be done.

DESCRIPTIVE MODEL portrays things

as they are.

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TYPES OF MS MODELS

Linear Programming Models widely used to determine the best

way to allocate limited resources to

achieve some desired end.- Linear programming can be applied to those

business and industrial operations where some

maximum or minimum value can be derived-establishing machine output, ideal inventory

levels, best product-mix and the like.

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TYPES OF MS MODELS

Queuing or Wait ing -L ine Models

are developed to help managers

decide how long a waiting linewould be most preferable.

(E.g. loading platform, supermarket

check out counter)

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TYPES OF MS MODELSGame Theory attempts to predict

how rational people will behave in

competitive situations. By analyzingwhat competitors are likely to do, in

certain situations, game theorists

can help managers developeffective strategies.

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TYPES OF MS MODELS Simulat ion Models are specifically

designed to be used for problems that are toocomplex to be described or solved by standardmathematical equations. It can be speeded up

(through the computer) to indicate withinminutes what would occur in the real worldover a period of years.

(e.g. testing of machine systems and large-scale operations such as airports and

training of space shuttle astronauts.)

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Types Of Problems For Which MS Techniques Are

Most Frequently Applied

Inventory Problems As managers, wehave to decide how much inventory to carryand when inventory needs to be replenished.

To help decide, MS team will try to balancethese conflicting cost tendencies byproposing an inventory program that willbalance the need to satisfy customer

demands against the need to maintain lowordering and carrying cost.

MS technique/s: Linear programming and

Simulation models can be used for this

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Allocation Problems

Two Common types:a. There are available resources :

Problem: Finding the best mix of available resources to

perform a particular job.

b. No available resources:

Problem: Finding the most profitable product-mix.

MS technique/s: Linear Programming.

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Queuing(waiting-line) Problems

- Involve designing facilities to meet a demand forservices.

MS technique/s:- Queuing models

- Simulation techniques for complex cases

E.g. gas stations, checkout counters, airlinebooking services

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Sequencing Problems

- Arise when we have to decide in whatorder theparts of a job are to be performed.

- The problem is to sequence the work stations in

such a way that idle time is minimized andworking time at all stations is roughly equalized.

- MS technique/s:

- Simulation which allows the efficiency ofdifferent sequences to be tested.

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Routing(Scheduling) Problems

- Arise if we have to decide when(rather than inwhat order) parts of a job are to be done.

Problem: Which is the quickest, least expensiveschedule of shipping an item from point A to B.

MS technique/s:Linear programming, queuing or combinationof the two

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Replacement Problems

Problem 1: To decide exactly when expensiveitems (machinery and trucks) must bereplaced.

Problem 2: For large number of inexpensiveitems (light bulbs),the problem is to decidewhether to have each item replaced as it failsor to wait until set number fail and then haveseveral items replaced simultaneously.

MS technique/s: Linear programming, whichsuggests the least expensive replacement

schedule.

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Competition Problems

Develop when two or more organizations are

trying to achieve inherently conflicting

objectives.

Problem: finding strategies and decisions

thet will maximize ones gains and minimize

ones loses.

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END OF THEPRESENTATION

Thank You !!!