Ch1 Flashcards
What is management science?
A field that utilizes a scientific approach to aid decision-making and solve complex problems.
What is another name for management science?
Operations research.
What is the primary aim of management science?
To assist managers in making more effective decisions.
List some disciplines integrated into management science.
- Economics
- Engineering
- Business consulting
What are the distinctive features of management science?
- Emphasis on decisions made by managers
- Utilization of scientific methods
- Comprehensive viewpoint in decision-making
- Incorporation of methodologies from various disciplines
- Dependence on well-defined mathematical models
- Use of technology
What is a major limitation of management science?
Reliance on interpretation by managers.
True or False: Management science is always straightforward to implement.
False.
What are some arguments against using management science?
- Time-consuming
- Difficulty in assessing uncertainties
- More costly relative to the size of the problem
- Decision-makers may not appreciate the results
- Use of oversimplified mathematical tools
- Lack of experiments/studies due to costs
What is one application of management science in inventory control?
Determining the optimal quantity of raw materials to minimize storage costs.
Fill in the blank: Management science can help in _______ design to optimize workflow.
[facility]
What does portfolio analysis in management science involve?
Choosing the best combination of stocks, bonds, and other investments.
What is product-mix determination?
Deciding how many of each product a company should produce to maximize profit.
What is the goal of scheduling and sequencing in project management?
Minimizing total project time by efficiently ordering tasks.
What is transportation planning in management science?
Determining the most cost-effective routes for delivering goods.
What does designing management information systems entail?
Creating a database and reporting system for monitoring sales performance.
What does allocation of scarce resources involve?
Distributing limited funds among departments to maximize productivity.
What is project management or capital budgeting concerned with?
Evaluating investments based on net present value and return on investment.
What are investment decisions in management science?
Deciding which new projects to invest in based on projected cash flows.
What is a key consideration in new product decisions?
Market analysis and projected profitability.
What is the purpose of manpower or sales force decisions?
Determining the number of sales representatives needed based on sales volume.
What does market research and development decisions involve?
Deciding customer segments to target with new marketing campaigns.
What is a key factor in pricing decisions?
Competitive pricing and market demand analysis.
What is the goal of distribution decisions?
Selecting optimal locations for warehouses to minimize shipping costs.
What do credit policy analyses determine?
Optimal credit terms for customers to balance revenue and risk.
What is the focus of machine setup problems in production?
Optimizing production sequence to minimize setup time.
What does research and development effectiveness involve?
Deciding which R&D projects to pursue for maximum return.
