Introduction to Modelling - Cairo UniversityIntroduction to Modelling Chapter 1 1-2 The Management Science Approach Management science is a scientific approach to solving management

1-1

Introduction to Modelling

Chapter 1

1-2

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, decision sciences, involves a philosophy of problem solving in a logical manner.

1-3

Three things to remember..

1. management science techniques can be applied to solve problems in different types of organizations, including services, government, military, business and industry, and health care.

2. in many cases the computer solution is emphasized.3. the philosophy of approaching a problem in a

logical manner (i.e., a scientific approach). The logical, consistent, and systematic approach to problem solving.

1-4

The Management Science Process

Figure 1.1 The management science process

1-5

Steps in the Management Science Process

(1) Observation - Identification of a problem that exists (or may occur soon) in a system or organization.

A Problem: something that is difficult to deal with : something that is a source of trouble, worry, etc.

1-6

(2) Definition of the Problem -problem must be clearly and consistently defined, showing its boundaries and interactions with the objectives of the organization.

1-7

(3) Model Construction

1-8

A model is an abstract mathematical representation of a problem situation.

As an example, consider a business firm that sells a product. The product costs $5 to produce and sells for $20….

A model that computes the total profit that will accrue from the items sold is…….

1-9

A variable is a symbolused to represent anitem that can take onany value.

Parameters are known,constant values thatare often coefficients ofvariables in equations.

dependent variable

independent variableA model is a functional relationship thatincludes variables, parameters, and equations.

1-10

Let us assume that the product is made from steel and that the business firm has 100 pounds of steel available.

If it takes 4 pounds of steel to make each unit of the product, we can develop an additional mathematical relationship to represent steel usage:

1-11

objective function

constraint

1-12

• This model now represents the manager’s problem of determining

the number of units to produce.

• we defined the number of units to be produced as x.

• Thus, when we determine the value of x, it represents a potential

(or recommended) decision for the manager.

• Therefore, x is also known as a decision variable.

1-13

(4) Model Solution - Models solved using management science techniques.

(5) Model Implementation -Actual use of the model or its solution.

1-14

THIS COURSE

Introduction to

Decision Support Systems

1-15

Goals

To introduce students to the subject of quantitative modeling (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.

1-16

TEXTBOOK

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

1-17

GRADING

Class participation Assignments none Exercise sessions 5% Term Exam I 10% Mid-Term Exam II 15% Term Exam III 10% Final Exam 60%

1-18

Wk. Starting Lectures

Sat I (Mon) II (Tue) 1 11/2 Ch.1: Management Science

2 18/2 Ch.1: Management Science Ch.2: Linear Programming: Model Formulation and Graphical Solution

3 25/2 Ch.2: Linear Programming: Model Formulation and Graphical Solution 4 4/3 Exam (1) Ch.4: Linear Programming: Modeling Examples 5 11/3 Ch.4: Linear Programming: Modeling Examples 6 18/3 Ch.3: Linear Programming: Computer Solution and Sensitivity Analysis 7 25/3 Ch.5: Integer Programming 8 1/4 Mid-term - Exam (2) 9 8/4 Ch.6: Transportation, Transshipment, and Assignment Problems 10 15/4 11 22/4 Ch.7: Network Flow Models 12 29/4 Ch.7: Network Flow Models Exam (3) 13 6/5 Ch.8: Project Management

14 13/5

1-19

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.

No food…No drinks…Thanks!

1-20

Contact

Instructor: Hisham Abdelsalam, Ph.D. Office hours: TBD and by appointment. EMAIL: [email protected] (put” NDS311” in the subject header of the message)

Teaching assistants: Eng. Mohamed Saad

1-21

Thanks!