Escolar Documentos
Profissional Documentos
Cultura Documentos
Introduction to
Management Science
Body of Knowledge
The body of knowledge involving quantitative approaches to decision
making is referred to as
• Management Science
• Operations Research
• Decision Science
It had its early roots in World War II and is flourishing in business and
industry due, in part, to:
• numerous methodological developments (e.g. simplex method for
solving linear programming problems)
• a virtual explosion in computing power
1
28/08/2018
Problem Solving
• The process of identifying a difference between the
actual and the desired state of affairs and then taking
action to resolve the difference.
2
28/08/2018
Decision Making
•The term generally associated with the first five
steps of the problem-solving process.
3
28/08/2018
4
28/08/2018
•Programmed
•Non-programmed
5
28/08/2018
•Routine
•Non-routine
6
28/08/2018
Risk
A decision has clear goals and good information is available, but the
future outcomes associated with each alternative are subject to chance.
Uncertainty
Managers know which goals they wish to achieve, but information about
alternatives and future events is incomplete and managers may have to
come up with creative approaches to alternatives.
Programmed Non-programmed
Decisions Decisions
7
28/08/2018
8
28/08/2018
• Two assumptions:
1. Assumes that people are economically rational;
2. Assumes that people attempt to maximize outcomes in
an orderly and sequential process.
9
28/08/2018
Bounded Rationality or
Administrative Man Model
10
28/08/2018
Bounded Rationality or
Administrative Man Model
11
28/08/2018
Quantitative vs Qualitative
• Quantitative decisions are mostly based on statistical
analysis of collected data;
12