Presentation on Management Science

KEEN ORBITKEEN ORBIT

Presented toS M Salamotullah BhuiyanAdjunct Professor, FBA, USTC

Name of group members

Md. Abdul Motaleb Roll- 1126

Md. Omar FaruqRoll- 1120

Md. Jahirul IslamRoll- 1128

Suhail Mahmud ShakilRoll- 1121

Shanjida AfrozRoll- 1119

Mehedi Hasan Roll-1114

What is Management Science?

Management science (MS), is an interdisciplinary branch of applied science including mathematical modeling; Engineering; Statistics; and algorithms improve an organization's ability to enact rational and meaningful management decisions. The discipline is typically concerned with maximizing profit, assembly line performance, crop yield, bandwidth, etc. or minimizing expenses, loss, risk, etc.

ApplicationsApplications of management science are abundant in industry such as airlines, manufacturing companies, service organizations, military branches, and in government. The range of problems and issues to which management science has contributed insights and solutions is vast. It includes: scheduling airlines, both planes and crew,deciding the appropriate place to place new facilities such as a warehouse or factory,managing the flow of water from reservoirs,identifying possible future development paths for parts of the telecommunications industry,establishing the information needs and appropriate systems to supply them within the health service, andidentifying and understanding the strategies adopted by companies for their information systems.

Linear programming

Linear programming (LP; also called linear optimization)

ois a method to achieve the best outcome (such as maximum profit or lowest cost) in a mathematical model whose requirements are represented by linear relationships.

ois a special case of mathematical programming (mathematical optimization).

Linear programming is used to solve problems in many aspects of business administration including:

Linear programming in Business

• Linear programming methods to determine the best ways to increase profits and decrease operational costs.

• Linear programming methods enable businesses to identify the solutions they want for their operational problems,

• Define the issues that may alter the desired outcome and

• Figure out an answer that delivers the results they seek.

Linear programming in Business

Production Planning

Linear programming methods are often helpful at solving problems related to production.

For instance, a custom furniture shop that makes chairs and tables can calculate how many of each item they must sell to maximize their profits by looking at the numbers of each item previously sold and their prices.

Linear programming in Business

Marketing Mix• A key aspect of marketing strategy is the

"marketing mix." The marketing mix determines how much of a company's marketing budget will go toward various advertising and marketing channels by linear programming.

For example, the custom furniture store can use a linear programming method to examine how many leads come from TV commercials, newspaper display ads and online marketing efforts. The solution will also compare the relative prices of each medium to find the most economical mix.

Linear programming in Business

Product Distribution

• Manufacturers and distributors can use linear programming methods to solve distribution problems.

• These models can also ensure that warehouses maintain an optimal amount of each product in stock as demand fluctuates.

Personnel AssignmentsHuman resources planners can use linear programming methods to determine

when to hire more workers, which skill sets the company needs and how much they can offer in compensation. also be used to anticipate times of increased demand for available workers.

For example, a department store can use linear programming methods to calculate how many new hires they will make for the busy holiday shopping season, as well as which departments will see higher traffic and require more staff.

Charactaristics of Linear programming

Branch of mathematics Branch statistics To determine solutions to

problems of optimization. Linear programming problems are distinctive

An extremely useful field ranging from logistics to industrial planning.

Charactaristics

• Optimization

All linear programming problems are problems of optimization means either maximize or minimize some value.

Charactaristics

• Linearity

As the name hints, linear programming problems all have the trait of being linear.

Linearity does not, however, mean that the functions of a linear programming problem are only of one variable.

Linearity allows the variables to relate to each other as coordinates on a line, excluding other shapes and curves.

Charactaristics

• Objective Function

The result of a linear programming problem will be given in terms of the objective function.

Charactaristics

• Constraints

All linear programming problems have constraints on the variables inside the objective function. These inequalities define how the objective function can be maximized or minimized, as together they determine the "domain" in which an organization can make decisions about resources.

Advantages

Linear programming has a versatile technique that can be used to represent a number of real-world situations.

Businesses use techniques to solve problems that involve multiple variables and constraints.

The use of computers has made this technique easier to apply.

Linear programming is one of the widely used modeling techniques.

Limitation

The linear programming approach is based on an assumption that the world is linear. In the real world, this is not always the case.

There are certain ways of mixing the inputs that a linear programming approach doesn't permit.

Linear models also don't account for factors such as increased production efficiency as the level of production rises.

Assumption of Linearity

Limitation

Fractional Values

The linear programming model assumes that inputs and outputs can be fractional.

If even one variable involved has to be in integer form, linear programming is not a suitable technique.

Thank You