Business Decision Modeling Introductions Professor Students Housekeeping notes
Business Decision Modeling • Introductions – Professor – Students • Housekeeping notes – Syllabus – Attendance – Homework, quizzes, exams, etc. DSCI 3223 1
What is Business Decision Modeling? • “The application of scientific approach to solving management problems in order to help managers make better decisions” - Taylor • “. . . the application of quantitative analysis to managerial decision making. ” - Lee • “. . . operations research may be described as a scientific approach to decision making. ” - Hillier and Lieberman • “Operations management is the study of decision making in the operations function. ” - Schroeder DSCI 3223 2
QM, OR, OM? • MS is referred to as all of the above: – – Management science Operations research Quantitative analysis Operations management • However, it is actually a process for solving problems • What type of problems? In what Industries? DSCI 3223 3
MS is Used Extensively In • Banking – Loan portfolio optimization – Credit Card Management • Manufacturing – Quality Control – Production Scheduling • Entertainment – Demand Forecasting – Queuing/Crowd Control DSCI 3223 • Airline/Travel Industry – Ticketing/Reservations – Airplane Maintenance • Marketing – Market Research – Consumer Preferences • Computer Science – Software Development – Simulation 4
Companies Using MS • SABRE Decision Technologies – airline reservation systems • Signet Bank, GE Capital, Providian, Capital One – credit card and financial management • CSX and Union Pacific Railroad – freight transportation • Ernst & Young, Mc. Kinsey, Accenture Consultants – business reengineering, forecasting, MIS DSCI 3223 5
MS Process • • • Identification of the Problem Definition of the Problem Modeling of the Problem Initial Model Solutions/Conclusions Review and Iteration Implementation DSCI 3223 6
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