MGMT101 Lecture1 Introduction
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Transcript of MGMT101 Lecture1 Introduction
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Lecture 1: Introduction toManagement Science
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What is Management Science?
process analysis
identifying bottlenecks
inventory control
queueing theory
statistical analysis
optimization
simulationproject planning
capacity management
revenue managementtransportation planning
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Management Science Applications
logisticschip design
timetabling production planning
air traffic routing
scheduling
supply chain management
portfolio optimization
marketing campaign design
network design
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Management Science Is
A discipline that attempts to aid managerial decisionmakingby applying a scientific approach to managerialproblems that involve quantitative factors.
Management science uses mathematical models andcomputer algorithms to solve complex business
problems.
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Who Uses Management Science?
Netherlands Railways
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What can YOUdo with
Management Science?
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The Management Science Process
1. Define the problem and gather data
2. Formulate a model to represent the problem
3. Develop a computer-based procedure for deriving
solutions to the problem from the model
Problem ModelSolution
Method
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The Management Science Process
4. Test the model and refine it as needed
5. Apply the model to analyze the problem and developrecommendations for management
6. Help to implement the teams recommendations thatare adopted by management
Problem ModelSolutionMethod
TestApply &Analyze
Implement
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The Management Science Process
Problem definition
Mathematical modeling
Solution of the model
Communication/implementation
of results
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The Management Science Process
Problem definition
Mathematical modeling
Solution of the model
Communication/implementation
of results
Algebra, Excel
Excel Solver
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Goals for this Course
Learn what management science can do
Learn the vocabularyof management science
Learn how to formulate and modelbusiness problems
Learn how to optimize business problems using Excel Have fun!
Hopefully this course will:
Change the way you think about problem solving
Encourage you to employ management science as a keycomponent of building competitive advantage
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Mental Map of the Course
Week Lecture Dates Lecture Topics
Textbook
Chapters
Assignments
(approx. due dates)
1 Jan-04, Jan-06 Introduction / Linear Programming 1, 2
2 Jan-11, Jan-13 Linear Programming 2, 3, 4
3 Jan-18, Jan-20 Linear Programming 2, 3, 4, 6 HW#1 Due Thurs, Jan 20
4 Jan-25, Jan-27 What-If Analysis / Midterm Review 5 HW#2 Due Thurs, Jan 27
5 Feb-03 Integer Programming 7
6 Feb-08, Feb-10 Integer Programming / Quadratic Programming 7, 8
7 Feb-15, Feb-17 Goal Programming 17 (CD) HW#3 Due Thurs, Feb 17
8 Feb-22, Feb-24 Simulation 12
9 Mar-01, Mar-03 Decision Analysis 9 HW#4 Due Thurs, Mar 310 Mar-08, Mar-10 Other Topics / Final Exam Review
Midterm Exam: Tues, Feb 1 in-class
Final Exam: Section A on Tues, March 15, 10:30am-12:30pm; Section B on Fri, March 18, 10:30am-12:30pm
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Example Advertising Mix
Profit & Gambit Co. (p. 42 text) produces cleaningproducts:1. spray prewash stain remover
2. liquid laundry detergent
3. powder laundry detergent
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Example Advertising Mix
Management has decided to undertake a majoradvertising campaign
The campaign will use both television and print media
The general goal is to increase sales of these threecleaning products.
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Example Advertising Mix
Increase in Sales perUnit of Advertising
Product Television Print Media
MinimumRequiredIncrease
Stain remover 0% 1% 3%
Liquid detergent 3% 2% 18%
Powder detergent -1% 4% 4%
Unit Cost $1 million $2 million
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Recap
Introduction
Examples of Management Science
The Management Science Process Course Goals
Syllabus
Example: Optimizing Advertising Mix
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Next Day
Formulating Problems
Translating from English to ManagementScience