Classroom Integration of Statistics and Management Science Via Forecasting

Abstract

An integration of management science with statistics is naturally occurring in MBA programs, whether management scientists appreciate this integration or not. Through successful integration, students can see the value of both perspectives and can more easily make the leap from theory to practical application. Traditionally, the business school management science class has focused upon the mathematics of this science, rather than being focused upon the management and application of this science. MBA students generally seek practical skills that will allow them to quickly advance in their careers; they are typically less interested in focusing upon algorithms and complex models. The good news is that OR/MS courses can meet our student requirements and these highly useful techniques can sustain relevance in an ever-changing world. One area where management science techniques facilitate enhanced decision making is in the area of forecasting, which directly impacts many functional areas of business. Albritton, McMullen, and Gardiner (2003), in their assessment of OR/MS in AACSB-accredited U.S. business programs, report that only 53% of MBA-level professors include forecasting as a topic area in their courses. Given that the typical number of OR/MS course offerings at most business schools is very limited, Faculty must be selective about which topics to include. Perhaps forecasting, in particular, is omitted because of complexity when demonstrating in the classroom. This teaching brief presents an approach that has been proven successful for forecasting in the classroom, using a spreadsheet. The use of spreadsheets for modeling and simulation is a valid approach for MBA students, as it facilitates