Management Science and Managerial Decision Making - Coursework Example

Download file to see previous pages MS is applied in a variety of areas such as logistics, supply chain management, production and inventory management, decision analysis, optimization, simulation, forecasting, game theory, network/transportation forecasting models, mathematical modeling, data mining, probability and statistics, resource allocation, project management, engineering as well as many others. In short, MS uses data, makes a suitable model, and provides solutions to the problems in a variety of ways. Wider applicability of this approach is seen in planning for the future, and the most common tool used is the linear programming model. This discussion explores the relationship between management science approach and managerial decision making with the applicability of specific tools, such as the linear programming model. In the process, it includes an understanding of components of linear programming and associated inferences such as break-even point and sensitivity analysis. Further, the main functional constraints in linear programming problems have been outlined.
Management Science aids in managerial decision making’ (Hillier & Hillier 2010, 3) Management science provides a holistic view of operational performance including a fair idea of potential issues, factors hindering performance, and performance analysis; it also helps in highlighting existing gaps in the system or process. In order to manage effectively, such information helps managers inappropriate decision making either by effecting changes to the system/process or adopting new approaches. MS also provides managers with tools and techniques to implement new processes and to look at existing issues from quantitative, mathematical, and graphical views. These are accomplished in five steps. Firstly, the manager or the MS team identifies the problem and gathers data relevant to the problem over a sufficient period of time. Next, a model is formulated to represent the problem, either in the form of scientific structures or mathematical models. ...Download file to see next pagesRead More