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Introduction to Management Science 472.21 1 Fall 2011 Bruce Duggan Providence University College.

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Presentation on theme: "Introduction to Management Science 472.21 1 Fall 2011 Bruce Duggan Providence University College."— Presentation transcript:

1 Introduction to Management Science Fall 2011 Bruce Duggan Providence University College

2 Management Science 1.What is it? 2.What’s it good for? 3.The textbook!?!?!?!? 4.What are we going to do?

3 What is it? Management Science in 6 words:  tackle business problems using models not a single technique  a collection of tools words math graphs

4 1. What is it? Niverville Young People’s Lemonade Stand Sale price23¢/glass Our cost8¢/glass Stand & flyers$100 Expect to sell400 glasses We’ll make:? words math graphs

5 1. What is it? Niverville Young People’s Lemonade Stand Price23¢/glass Variable costs8¢/glass Fixed costs$100 Volume400 glasses Profit? words math graphs

6 1. What is it? Niverville Young People’s Lemonade Stand p =0.23 c v =0.08 c f =100 v =400 Z =? words math graphs

7 1. What is it? Math model:  NYP Lemonade Stand profit = volume  price – fixed costs – volume  variable costs Z = vp - c f - vc v words math graphs

8 1. What is it? Math model:  NYP Lemonade Stand Z = vp - c f - vc v  breakeven: words math graphs v= cfcf p-c v v=

9 1. What is it? Math model:  any selling activity Z = vp - c f - vc v  breakeven: words math graphs v= cfcf p-c v

10 Graph model: 1. What is it? v (volume) c f (fixed cost) revenue $ expenses c v (variable cost) words math graphs  price: 25 cents?

11 Graph model: 1. What is it? v (volume) c f (fixed cost) revenue $ expenses c v (variable cost)  price: 25 cents?  variable cost: 6 cents?

12 Graph model: 1. What is it? v (volume) c f (fixed cost) revenue $ expenses c v (variable cost)  price: 25 cents?  capital cost: $50?  variable cost: 6 cents?

13 Graph model: 1. What is it? v (volume) c f (fixed cost) revenue $ expenses c v (variable cost)  price: 25 cents?  capital cost: $50?  variable cost: 6 cents?

14 1. What is it? Management Science focuses on theoretical general deductive applied specific inductive

15 2. Uses mixing  products  actions scheduling  carriers  people  projects choosing between  projects  methods  priorities predicting  lines  inventory  outcomes

16 2. Uses guessingcertainty superstition & absolute confusion Spock-like clarity

17 3. The textbook!?!?!?!? How to get through it  we’re not going to do it all  don’t read too far ahead Applications & Cases OK  open book answer book on reserve  don’t fall behind

18 4. What are we going to do? Syllabus  Take it one week at a time 4.5 hrs / week  1 hr- read chapter  1.5 hr- scheduled study group  2 hr- work through problems yourself  We’re in this together talk to each other come see me

19 For Tue Read ch 1  1 hr don’t worry about QM  pg focus on Excel  pg 13 Do either case 1 or 2  pg ½ hr  then stop

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