Page 40 -

20 CHAPTER 1 INTRODUCTION

usefulness of the model. This is another reason why the client/decision-maker should
also be involved in the modelling process – they may know better than the manage-
ment scientist which assumptions are realistic and which less so. Model testing or
model validation is typically the next stage. This is where we use the model and the
data to analyze/solve the problem and try to assess whether the model is a reason-
able one for the problem situation. In part this is about assessing whether the output
we get from the model appears sensible given the problem context. Finally, if we are
satisfied the model has been validated then we can proceed to model use – starting
to use the model to assist the decision-maker. Again, it is worth emphasizing that in
practice the modelling process – like the rest of the management science method-
ology – is messy, iterative, time-consuming and typically frustrating with a lot of trial-
and-error often taking place before a satisfactory outcome has been realized.

1.8 Management Science Models and Techniques

In this section we give a brief overview of the MS techniques and models covered in this
text and on the complementary online platform. Don’t be put off by the fact that some
may seem very technical. We’ll see later how these techniques work and how they can
be used effectively in decision-making.

Linear Programming
We start the text by looking in detail at one of the classic MS techniques – that of
linear programming (LP). LP is a problem-solving approach developed for situations
where we require to determine an optimum solution and where we face certain
limitations or constraints on what we are able to do. We may seek to maximize profit,
minimize costs, minimize travel time, maximize sales but subject to various constraints
imposed on the problem. The term programming refers not to the need for computer
programming but to the fact that technique comprises a set of logical steps to
determine the optimal solution to an LP problem. The term linear indicates that the
problem can be set out using linear (straight-line) relationships between the variables.

Transportation and Assignment
We next look at a specialized group of techniques that are applied to transportation
and assignment problems. These are common application areas where items have to
be transported between locations or where resources have to be assigned to partic-
ular tasks. Because of their relatively specialized focus, a number of solution techni-
ques have been developed for these types of problem.

Network Models
Specialized solution procedures exist for problems involving some sort of network
(such as roads or routes) enabling us to quickly and effectively solve problems in
such areas as transportation system design, information system design and project
scheduling.
Project Management

In many situations, managers are responsible for planning, scheduling and control-
ling projects that consist of numerous separate jobs or tasks performed by a variety
of departments, individuals and so forth. The PERT (Programme Evaluation and
Review Technique) and CPM (Critical Path Method) techniques help managers
carry out their project scheduling responsibilities.

Copyright 2014 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s). Editorial review has
deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it.