Chapter 1 "Introduction to management science, modeling, and excel spreadsheets", after completing this chapter, you should be able to: Describe the importance of management science, describe the advantages of a quantitative approach to problem solving, list some of the applications and use of management science models, discuss the types of models most useful in management science, demonstrate the basic building blocks and components of Excel. | Chapter 1 Introduction to Management Science, Modeling, and Excel Spreadsheets Learning Objectives Describe the importance of management science. Describe the advantages of a quantitative approach to problem solving. List some of the applications and use of management science models. Discuss the types of models most useful in management science. Demonstrate the basic building blocks and components of Excel. After completing this chapter, you should be able to: McGraw-Hill/Irwin 1– Learning Objectives (cont’d) Describe the basic nature and usefulness of break-even analysis. List and briefly explain each of the components of break-even analysis. Solve typical break-even problems manually and with Excel. After completing this chapter, you should be able to: McGraw-Hill/Irwin 1– The Importance of Management Science Management science The discipline of applying advanced analytical methods to help make better decisions. Devoted to solving managerial-type problems using quantitative models Applications of management science Forecasting, capital budgeting, portfolio analysis, capacity planning, scheduling, marketing, inventory management, project management, and production planning. McGraw-Hill/Irwin 1– Table 1–2 Successful Applications of Management Science McGraw-Hill/Irwin 1– Table 1–2 Successful Applications of Management Science (cont’d) McGraw-Hill/Irwin 1– Problem Solving Approaches Managers tend to use a qualitative approach to problem solving when The problem is fairly simple. The problem is familiar. The costs involved are not great. Managers tend to use a quantitative approach when The problem is complex. The problem is not familiar. The costs involved are substantial. Enough time is available to analyze the problem. McGraw-Hill/Irwin 1– Advantages of the Quantitative Approach Directs attention to the essence of an analysis: to solve a specific problem. Improves planning which helps prevent future problems Results in more objective . | Chapter 1 Introduction to Management Science, Modeling, and Excel Spreadsheets Learning Objectives Describe the importance of management science. Describe the advantages of a quantitative approach to problem solving. List some of the applications and use of management science models. Discuss the types of models most useful in management science. Demonstrate the basic building blocks and components of Excel. After completing this chapter, you should be able to: McGraw-Hill/Irwin 1– Learning Objectives (cont’d) Describe the basic nature and usefulness of break-even analysis. List and briefly explain each of the components of break-even analysis. Solve typical break-even problems manually and with Excel. After completing this chapter, you should be able to: McGraw-Hill/Irwin 1– The Importance of Management Science Management science The discipline of applying advanced analytical methods to help make better decisions. Devoted to solving managerial-type problems using quantitative
