Management Science Applications Research Articles

Practical Management Science Spreadsheet Modeling and Applications.

Practical Management Science Spreadsheet Modeling and Applications.

Spatial decision support systems for vehicle routing

The vehicle routing field is a well-developed area of management science application. There is increasing recognition that effective decision-making in this field requires the incorporation of vehicle routing techniques into a decision support system (DSS). In order to provide decision support for a wide range of problems, routing techniques should be combined with systems that can take advantage of new technologies. These include spatial techniques drawn from the field of geographic information systems (GIS). A synthesis of appropriate algorithms and a GIS based computer system is identified as being necessary for effective decision support for the vehicle routing problem.

The Teachers' Forum: Management Science with Spreadsheets for MBAs at Indiana University

A highly successful spreadsheet-based management science course for MBA students at Indiana University deals mainly with simulation and mathematical optimization with spreadsheet solvers and includes many applications of management science that are extremely relevant to these students. They seem to prefer the spreadsheet approach over the traditional management science approach.

R&D Project Appraisal at the Gas Research Institute: Part II

The Project Appraisal Methodology (PAM) was originally developed in 1975 and first run at the Gas Research Institute (GRI) in 1978 to help upper management select portfolios of research and development (R&D) projects to fund. Since that time, GRI has had 132 successful project commercializations and has achieved a success rate of 30% or over twice the documented industry average. GRI attributes its success to several decision making principles founded in management science. PAM is the cornerstone of GRI's R&D decision making process. In particular, GRI's projects are generating benefits for natural gas consumers and suppliers (savings plus sales increases) of $7–15 billion per year on an annual investment of about $1.6 billion and netting almost a 7 to 1 annual rate of return on their investment. Just in 1985–1989 these new technologies contributed to a savings of $70 billion ($78 billion, NPV, 1990$s) in the wellhead price of natural gas in the USA. Additionally, the application of management science at GRI has led to increases in available natural gas supplies (valued at $10–35 billion), a corresponding reduction in dependence on imports, major environmental and safety benefits, and vital changes in the position of the gas industry in the home heating, commercial cooking, and numerous other markets.

A Literature Analysis of the Use of Management Science Tools in Strategic Planning

A literature analysis was conducted to examine the application of Management Science (MS) tools in Strategic Planning. The 766 abstracts were classified into a series of strategic categories to identify their contribution to specific phases of the Strategic Planning process. A functional classification was used to indicate the key issue or type of problem involved. Industry, publication date, and publication source were also considered. To identify potential application areas for the MS tools, beyond those found in this sample, a gap analysis was performed using Reisman's methodology for finding researchable topics.

Applications of Management Science in Fisheries Management

Applications of Management Science in Fisheries Management

Estimating reorder points and other management science applications by bootstrap procedure

The bootstrap procedure proposed by B. Efron is a resampling method which has nice estimation properties. We believe that the method has many useful applications to areas in OR and management science. In this paper, the bootstrap procedure is the demonstrated in the context of estimating the lead-time demand distribution and reorder points for an inventory control system. Numerical investigation shows that the procedure performs very well in comparison with the exact distribution and with other methods when the daily demands are either independent or autocorrelated. It also compares favorably with the ordinary simulation and has a smaller standard error for estimating the reorder points.

Logic as an integrated modeling framework

There is a growing interest in the application of Artificial Intelligence (AI) tools and techniques to management science problems. A rich variety of commercial AI software products is now emerging to facilitate this. However, there has been little integration between AI and Management Science (MS) at a theoretical level. This paper proposes the use of formal logic as the basis for this conceptual bridge, and the use of logic programming as a modeling language for management science applications. The framework is illustrated by a logic-based representation, called PM, for specifying production, distribution and inventory problems.

On the use of expert systems in network optimization: With an application to matrix balancing

Network optimization models have a wide variety of applications in operations research, management science, transportation, engineering design and other areas. Much has been done on the design of efficient algorithms for the solutions of very large problems. Difficulties remain, however, in building and implementing such models on the computer for practical use. Notwithstanding, recent developments in modelling languages, building network models remains the privilege of experienced modellers and is in general a time-consuming task. Expert systems and artificial intelligence methodologies could provide the link between practitioners and network optimization techniques. In this paper, we examine the role of expert systems in an operations research environment and identify the issues to be addressed in developing an expert system for network modelling. The discussion is illustrated with the development of a prototype expert system that solves matrix balancing problems using network optimization techniques. The system has the ability to identify the correct (nonlinear) network optimization model for each problem instance. A network problem is automatically set up and solved using a high-level modelling language. The results of the model and sensitivity analysis information are interpreted for the user by the expert system, in the vocabulary of the original description of the problem.

Static game theory models and their applications in management science

In the present paper, we give a brief review of static game models and their applications in management science. Our intention here is twofold: On the one hand, we would like to provide the reader with an overview of game theory and its applications in management science. On the other hand, we intent to explore the mathematical tractability of management science problems when formulating them as game theory models. To make the paper not too extensive, we restrict our attention to static game theory models and five management science related areas. Our discussion starts by a general description of static game theory models and their solution schemes and follows by an investigation of game theory applications. At the end of the survey, we provide a brief description of some other approaches of game theory.

Franz Edelman Award for Management Science Achievement

In 1987, the Edelman Award Committee selected five finalists representing diverse business applications areas. A common theme among these five outstanding contributions is the application of management science to help senior decision makers gain an improved understanding of the complex forces in their business environments, allowing them to make better business decisions. The judges acknowledged three finalists with honorable mentions with awards of $500 each: LTV Steel Company, the US Army, and the Office of Technology Assessment. North American Van Lines was given the second prize award, with a cash award of $2,500. The first prize was awarded to Syntex Laboratories, with a $6,000 cash award.

The evolution of management science practices in Israel

Management science applications in Israel have developed since the 1960s, after the universities began to teach the topic and powerful managers helped the introduction of applications. Uses were extensive only when experts interacted with sophisticated managers, mainly in large organizations where data was available and dissatisfaction with existing methods had developed. MS was much less used when the status quo could not be challenged, mainly in small or regulated firms or when the MS introduction was perceived as a threat to an existing power structure. Today MS is widespread, although its applications are more part of engineering or management practice than the domain of dedicated units. The variables explaining these phenomena are discussed.

In search of an effective management science application in a developing country—The case of Greece

This paper gives an account of the application of Management Science in Greece and in particular, to what extent such advanced management methods can be applied in systems and organisations of a country with Greece's socio-economic development characteristics. Furthermore it examines the ways and manner in which these approaches actually influence the practice of managers and the management process in Greece. It supports certain hypotheses regarding this application and puts forward the proposition that in settings which are usually characterised by unstructured forms of organisations, systems and processes Management Science and Operational Research could contribute meaningfully through possibly system design and policy analysis rather than ‘forcing’ them to fit into a standard model.

An interactive simulation modeling system: DYNAGRAPH for multi-period planning on an APL spreadsheet

A Modeling System named DYNAGRAPH has been developed on the IBM 5550 Personal Computer with NEXUS 5500 Graphics to interactively build dynamic simulation models using APL functions. A model for the simulation is represented by APL expressions in the rows of an APL Spreadsheet. The modeling of dynamic systems is achieved by a state-variable method. The paper introduces DYNAGRAPH and the underlying modeling method. Some of the modeling functions for dynamic simulations are presented. We claim that the method is suitable and convenient for modeling problems of moderate size, especially when using APL in teaching or business environments: DYNAGRAPH is useful as a training tool and an APL program generator to enhance APL applications in management science.

Book Reviews

Schultz, Randall L. 1983, Applications of Management Science, Vol. 3, JAI Press Inc., Greenwich, Connecticut, 291 pp., $22.50—reviewed by Gene Woolsey Rand, G. K. and Eglese, R. W., eds. 1985, Further Developments in Operational Research, Pergamon Press, Oxford, U.K., 116 + vii pp., $25.00—reviewed by Kamran M. Dadkhah Szep, J. and Forgo, F. 1985, Introduction to the Theory of Games, D. Reidel Publishing, Boston, 392 pp., $49.00—reviewed by Kalyan Chatterjee Schniederjans, Marc J. 1984, Linear Goal Programming, Petrocelli Books, Inc., Princeton, New Jersey, xvi + 229 pp., $24.95—reviewed by Jan Telgen Humphreys, Kenneth K., ed. 1984, Project and Cost Engineers' Handbook, second edition, Marcel Dekker, New York, ix + 275 pp., $37.50 and Gutman, Nathan, 1985, How to Keep Production Costs in Line, Marcel Dekker, New York, ix + 193 pp., $35.00—reviewed by A. Monroe Moore Train, Kenneth 1986, Qualitative Choice Analysis: Theory Econometrics, and an Application to Automobile Demand, The MIT Press, Cambridge, Massachusetts, 252 pp., $27.50—reviewed by R. Carter Hill Gross, Donald and Harris, Carl M. 1985, Fundamentals of Queueing Theory, second edition, John Wiley and Sons, New York, 587 pp., $42.95—reviewed by Daniel G. Shimshak

TECHNOLOGICAL CHANGES AND DEVELOPING COUNTRIES: A VIEWPOINT

Less developed countries are confronted with the problem of choosing among the different options of available technologies those that will lead them to the achievement of their economic and social goals faster. A review of the electronic revolution currently taking place in developed countries and throughout the world is presented and its impact upon manufacturing and process industries assessed. This electronic revolution has also made easier the application of management science in designing and controlling, in an optimum way, the different transformation systems and subsystems in a country. The problems of its implementation in less developed countries are briefly reviewed. A number of issues related to the transfer of technology from the developed to the less developed countries are discussed.

A Survey of Recent Management Science Applications in Higher Education Administration

A survey of recent articles reveals how much management science is really used in higher education administration by classifying each article according to the technique used, implementation experience, purpose of the model, administrative level, the resources to be allocated, and academic program. The results indicate an increased use of management science at the departmental level, but very little use in state or federal educational administration. The resource allocation problems of assigning faculty to courses or developing future budgets have been attacked diligently, although often with few actual implementations. However, other potentially rewarding areas such as operation of the physical plant have received little attention. Very few uses of MIS have been reported, but a number of successful DSSs have been developed and used.

The Successful Deployment of Management Science Throughout Citgo Petroleum Corporation

During 1984 and 1985, Citgo Petroleum Corporation invested in management science applications that involve (1) a comprehensive combination of mathematical programming, statistics, forecasting, expert systems, artificial intelligence, organizational theory, and cognitive psychology; (2) the support of top management and operational managers; (3) the involvement of diverse business areas, including acquisitions, refining, supply and distribution, market planning, accounts receivable and payable, inventory control, and individual performance objectives; (4) timely project development and implementation; and (5) integration of information systems and management science technologies, multiplying the potentials of each. These applications have changed the way Citgo does business and resulted in approximately $70 million per year profit improvement.

Quantitative Methods in Management: Case Studies of Failures and Successes.

Case studies from a wide range of sectors (agriculture, industry, trade, transportation, banking, consultancy, government institutions ...) are brought together in Quantitative Methods In Management to explore the usefulness and relevance of the application of operations research and management science. Mathematicians and computer scientists may be able to develop quantitative methods for management, but how do these work in practice? Forty practitioners have described and analysed actual projects, from their own experiences, one of which was a failure, the other a success. Certain questions were asked: What was the real problem? What was the approach? What was the real result? What can we learn from it? Evidently, valuable lessons can be gained from the recognition of why applications failed - one person's failure is another's gain.

Seen Elsewhere

“Seen Elsewhere” consists of digests of articles on the application and implementation of management science seen in other publications. Following articles are reviewed: —Hoskins, James A. 1985, “From the wasterland of experts—Back through the gateway of the competitive examination,” Air Force Journal of Logistics, Vol. 9, No. 4 (Fall), pp. 14–17; —Sholes, William A. 1986, “Expert system package troubleshoots snags at Australian lead, zinc smelting facility,” Management Information Systems Week, Vol. 7, No. 1 (January 6), p. 58; —Dunphy, Joseph F. and Wolfe, Paris 1985, “A new technique for risk assessment” Chemical Week, Vol. 137, No. 10 (September 4), pp. 15–16.