Management science

Management science (MS) is the broad interdisciplinary study of problem solving and decision making in human organizations, with strong links to management, economics, business, engineering, management consulting, and other fields. It uses various scientific research-based principles, strategies, and analytical methods including mathematical modeling, statistics and numerical algorithms to improve an organization's ability to enact rational and accurate management decisions by arriving at optimal or near optimal solutions to complex decision problems. Management science helps businesses to achieve goals using various scientific methods.

The field was initially an outgrowth of applied mathematics, where early challenges were problems relating to the optimization of systems which could be modeled linearly, i.e., determining the optima (maximum value of profit, assembly line performance, crop yield, bandwidth, etc. or minimum of loss, risk, costs, etc.) of some objective function. Today, management science encompasses any organizational activity for which a problem is structured in mathematical form to generate managerially relevant insights.

Overview

Management science is concerned with a number of different areas of study: One is developing and applying models and concepts that may prove useful in helping to illuminate management issues and solve managerial problems. The models used can often be represented mathematically, but sometimes computer-based, visual or verbal representations are used as well or instead.[1] Another area is designing and developing new and better models of organizational excellence.

Management science research can be done on three levels:[2]

The fundamental level lies in three mathematical disciplines: probability, optimization, and dynamical systems theory.
The modeling level is about building models, analyzing them mathematically, gathering and analyzing data, implementing models on computers, solving them, experimenting with them—all this is part of management science research on the modeling level. This level is mainly instrumental, and driven mainly by statistics and econometrics.
The application level, just as in any other engineering and economics disciplines, strives to make a practical impact and be a driver for change in the real world.

The management scientist's mandate is to use rational, systematic, science-based techniques to inform and improve decisions of all kinds. The techniques of management science are not restricted to business applications but may be applied to military, medical, public administration, charitable groups, political groups or community groups.

History

Its origins can be traced to operations research, which became influential during World War II when the Allied forces recruited scientists of various disciplines to assist with military operations. In these early applications, the scientists used simple mathematical models to make efficient use of limited technologies and resources. The application of these models to the corporate sector became known as management science.[3]

In 1967 Stafford Beer characterized the field of management science as "the business use of operations research".[4]

Theory

Some of the fields that management science involves include:

Data mining
Decision analysis
Engineering
Forecasting
Game theory
Industrial engineering
Logistics
Mathematical modeling
Optimization
Operational research
Probability and statistics
Project management
Psychology
Simulation
Social network / Transportation forecasting models
Sociology
Supply chain management
Management consulting

as well as many others.

Applications

Applications of management science are abundant in industries such as airlines, manufacturing companies, service organizations, military branches, and in government. Management science has contributed insights and solutions to a vast range of problems and issues, including:[1]

scheduling airlines, both planes and crew
deciding the appropriate place to site 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 of health services and appropriate systems to supply them
identifying and understanding the strategies adopted by companies for their information systems

Management science is also concerned with so-called soft-operational analysis, which concerns methods for strategic planning, strategic decision support, and problem structuring methods (PSM). At this level of abstraction, mathematical modeling and simulation will not suffice. Therefore, since the late 20th century, new non-quantified modelling methods have been developed, including morphological analysis and various forms of influence diagrams.

gollark: Lignum is lemmmy is yemmel is Ale32Bit is dan200!

gollark: https://tools.ietf.org/html/rfc1925

gollark: Technic technic? Technic technic, technic technic.

gollark: Technic be like: technic. Technic technic.

gollark: There is a vast amount of JS APIs which you will have to block.

References

What is Management Science? Archived 2009-07-25 at the Wayback Machine Lancaster University, 2008. Retrieved 5 June 2008.
What is Management Science Research? University of Cambridge 2008. Retrieved 5 June 2008.
What is Management Science? Archived 2008-12-07 at the Wayback Machine The University of Tennessee, 2006. Retrieved 5 June 2008.
Stafford Beer (1967). Management Science: The Business Use of Operations Research