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4    CHAPTER 1 INTRODUCTION


                                     application of management science in practice. The first of these, Revenue Manage-
                                     ment at American Airlines, describes one of the most significant applications of
                                     management science in the airline industry.



                               1.2    Where Did MS Come From?


                    Patrick Blackett  At this stage you may be wondering; where did MS come from, how did it develop? It
                    (1897–1974) – later  is generally accepted that management science as a recognized subject has its origins
                    Baron Blackett – was one
                    of the leading figures in  in the United Kingdom around the time of the Second World War (1939–1945). The
                    the UK in the early years  UK’s very survival was threatened by its military enemies and the UK government
                    of operational research  established a number of multidisciplinary groups to apply scientific methods to its
                    during Word War II and  military planning and activities. Such groups consisted of scientists from a variety of
                    after. With a background
                    in physics (for which he  backgrounds: mathematics, statistics, engineering, physics, electronics, psychology as
                    was awarded the Nobel  well as military personnel and were tasked with researching into more effective
                    Prize), his declared aim  military operational activities (hence the name operational research). These groups
                    was to find numbers on  made significant contributions to the UK’s war efforts including: improvements in the
                    which to base decisions,
                    not emotion.     early-warning radar system which was critical to victory in the Battle of Britain; the
                                     organization of antisubmarine warfare; determination of optimum naval convoy sizes;
                                     the accuracy of bombing; the organization of civilian defence systems. The fact that
                                     these teams were multidisciplinary but also scientifically trained contributed signifi-
                                     cantly to their success. Their scientific training and thinking meant they were used to
                                     challenging existing ideas, they were used to querying assumptions made by others,
                                     they saw experimentation as a routine part of their analysis, they applied logic to
                                     problem solving and decision making, they collected and analyzed data to support
                                     their thinking and their conclusions. The fact that members of the team had different
                                     backgrounds, expertise and experience meant that not only could they challenge each
                                     other’s thinking but they could also combine different approaches and thinking
                                     together for the first time. With the entry of the USA into the Second World War
                                     following Pearl Harbor, and given the obvious success of operational research in the
                                     UK, a number of similar groups were also established throughout the US military
                                     (usually known as operations research groups).
                    In 1948 the Operational  After the war, operational research continued to develop in the military and in
                    Research Club of Great  defence-related industries on both sides of the Atlantic. In the US, there was
                    Britain was established
                    as a way of bringing  considerable academic development of management science partially financed by
                    together those with an  the US military, particularly in the areas of mathematical techniques. In the UK,
                    interest in seeing OR  however, operational research took on a new role contributing to the programme of
                    introduced into industry,  economic reconstruction and economic and social reform pursued by the new
                    commerce and
                    government. The Club  Labour Government at the end of the war. The challenges faced by industry and
                    became the OR Society  government in the UK at the time were major. There were issues relating to the
                    in 1953.         move back to a peacetime economy and the huge transition that this would require;
                                     there were issues relating to the management and development of the newly nation-
                                     alized industrial organizations in industries such as coal, steel, gas, electricity, trans-
                                     port; there was the huge demobilization of workers moving away from supporting
                                     the war effort and back into peacetime employment. Partly as a result, and partly
                                     because of the perceived success of operational research in the military, a number of
                                     large operational research groups were established in these industries and in govern-
                    The first Masters and
                    Ph.D academic    ment. Around this time also, academic programmes in management science began
                    programmes in OR were  to be introduced and the first dedicated textbooks started to appear.
                    established in 1951 at  Since then management science teams and management science techniques
                    the Case Institute of
                    Technology, Cleveland  have spread into a wide variety of industrial and commercial companies, central
                    Ohio.            government, local government, health and social care, across many different




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