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**Introduction to Modelling**

Chapter 1

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**The Management Science Approach**

Management science is a scientific approach to solving management problems. It is used in a variety of organizations to solve many different types of problems. It encompasses a logical mathematical approach to problem solving. Management science, also known as operations research, quantitative methods, etc., involves a philosophy of problem solving in a logical manner.

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**The Management Science Process**

Figure 1.1 The management science process

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**Steps in the Management Science Process**

Observation - Identification of a problem that exists (or may occur soon) in a system or organization. Definition of the Problem - problem must be clearly and consistently defined, showing its boundaries and interactions with the objectives of the organization. Model Construction - Development of the functional mathematical relationships that describe the decision variables, objective function and constraints of the problem. Model Solution - Models solved using management science techniques. Model Implementation - Actual use of the model or its solution.

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**Example of Model Construction (1 of 3)**

Information and Data: Business firm makes and sells a steel product Product costs $5 to produce Product sells for $20 Product requires 4 pounds of steel to make Firm has 100 pounds of steel Business Problem: Determine the number of units to produce to make the most profit, given the limited amount of steel available.

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**Example of Model Construction (2 of 3)**

Variables: x = # units to produce (decision variable) Z = total profit (in $) Model: Z = $20x - $5x (objective function) 4x = 100 lb of steel (resource constraint) Parameters: $20, $5, 4 lbs, 100 lbs (known values) Formal Specification of Model: maximize Z = $20x - $5x subject to 4x = 100

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**Example of Model Construction (3 of 3)**

Model Solution: Solve the constraint equation: 4x = 100 (4x)/4 = (100)/4 x = 25 units Substitute this value into the profit function: Z = $20x - $5x = (20)(25) – (5)(25) = $375 (Produce 25 units, to yield a profit of $375)

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A management science solution can be either a recommended decision or information that helps a manager make a decision.

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Introduction to Decision Support Systems This course

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Goals To introduce students to the subject of quantitative (known as management science), and a variety of management science models, methods and computational procedures that are helpful in solving management problems. To give students a good foundation in basic problem solving To introduce students to the concepts of Decision Support Systems and their role in today’s business environments.

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TEXTBOOK Bernard W Taylor III. Introduction to Management Science, 11th edition. Pearson.

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**GRADING Class participation 10% Homework problems 10%**

Exercise sessions 10% Mid-Term Exam I 15% Final Exam 60%

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CLASS ADMINISTRATION Students are expected to attend every class throughout the semester. However, no marks are given for just being there. I will call on students during class discussions. Contributing to the class discussion is an essential part of the learning process and will help to make the course relevant to all participants. Please, when the door is closed, do not enter or knock. Students should demonstrate respect for fellow students and myself during the class period. Turn your mobile phone off before class.

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COURSE OUTLINE

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Wk. Starting Lectures Sat I (Sun) II (Tue) 1 10/11 Ch.1: Management Science 2 10/18 Ch.2: Linear Programming: Model Formulation and Graphical Solution 3 10/25 Ch.3: Linear Programming: Computer Solution and Sensitivity Analysis 4 11/01 Ch.4: Linear Programming: Modeling Examples 5 11/08 Ch.5: Integer Programming 6 11/15 Ch.6: Transportation, Transshipment, and Assignment Problems 7 11/22 Ch.7: Network Flow Models 8 11/29 Ch.8: Project Management 9 12/6 Ch.12: Decision Analysis 10 12/13 Ch.13. Queuing Analysis 11 12/20 Decision Support Systems 12 12/27

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**Contact Instructor: Hisham Abdelsalam, Ph.D.**

Oﬃce hours: TBD and by appointment. (put” NDS311” in the subject header of the message) Course web-page: Teaching assistants: Eng. Mohamed Saad

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Thanks!

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