By John A. Lawrence, Barry A. Pasternack
This cutting edge e-book exhibits readers how you can use the administration technological know-how leads to genuine managerial determination making. It makes a speciality of real-world functions and utilizing software program instead of immediately arithmetic. This strategy permits readers to be aware of studying to take advantage of the administration technology leads to managerial choice making.
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Extra info for Applied management science : modeling, spreadsheet analysis, and communication for decision making
A company contemplating the introduction of a new product, for ex ample, will need to determine the exact production process, the materials and labor required, and the production quantities based on forecasted demand for its product and the availability of required resources. In this case the management science analysis revolves around the question, “How do we g et started? ” W hen analyzing an ongoing business venture, a “problem” does not necessar ily refer to a department or an operation that is experiencing substandard or unac ceptably low results.
T his process of “model-solve-verify” continues until both the analysts and manage ment feel comfortable about the model’s ability to yield relatively valid results. If, after numerous attempts to model the problem, management still lacks confidence in the results, it may conclude that this group should abandon its mod eling attempts. Another group of analysts, taking a fresh approach to modeling the problem, may be able to develop a model that is more acceptable to management. Alternatively, management may conclude that a qualitative rather than a quantita tive approach will have to suffice.
4 Furthermore, complex techniques are usually far more costly. Based on his vast experience as a management science consultant, Gene Woolsey has made three observations (which he calls Woolsey’s Laws) that have served as a useful guide to the selection of a solution technique: 1. Managers would rather live with a problem they can’t solve than use a technique they don’t trust. 2. Managers don’t want the best solution; they simply want a better one. 3. If the solution technique will cost you more than you will save, don’t use it.
Applied management science : modeling, spreadsheet analysis, and communication for decision making by John A. Lawrence, Barry A. Pasternack