Business Decision Modeling

1
Business Decision Modeling

• Introductions
• Professor
• Students
• Housekeeping notes
• Syllabus
• Attendance
• Homework, quizzes, exams, etc.

2
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

3
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?

4
MS is Used Extensively In

• Banking
• Loan portfolio optimization
• Credit Card Management
• Manufacturing
• Quality Control
• Production Scheduling
• Entertainment
• Demand Forecasting
• Queuing/Crowd Control

• Airline/Travel Industry
• Ticketing/Reservations
• Airplane Maintenance
• Marketing
• Market Research
• Consumer Preferences
• Computer Science
• Software Development
• Simulation

5
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, McKinsey,Accenture Consultants
• business reengineering, forecasting, MIS

6
MS Process

• Identification of the Problem
• Definition of the Problem
• Modeling of the Problem
• Initial Model Solutions/Conclusions
• Review and Iteration
• Implementation