Introduction to Management Science

Cover
Title Page
Copyright Page
Brief Contents
Contents
Preface
1 Management Science
	The Management Science Approach to Problem Solving
		Time Out: for Pioneers in Management Science
		Management Science Application: Room Pricing with Management Science and Analytics at Marriott
	Management Science and Business Analytics
	Model Building: Break‐Even Analysis
	Computer Solution
	Management Science Modeling Techniques
		Management Science Application: Management Science and Analytics
	Business Usage of Management Science Techniques
		Management Science Application: Management Science in Health Care
	Management Science Models in Decision Support Systems
	Summary
	Problems
	Case Problem
2 Linear Programming: Model Formulation and Graphical Solution
	Model Formulation
	A Maximization Model Example
		Time Out: for George B. Dantzig
		Management Science Application: Allocating Seat Capacity on Indian Railways Using Linear Programming
	Graphical Solutions of Linear Programming Models
		Management Science Application: Renewable Energy Investment Decisions at GE Energy
	A Minimization Model Example
		Management Science Application: Determining Optimal Fertilizer Mixes at Soquimich (South America)
	Irregular Types of Linear Programming Problems
	Characteristics of Linear Programming Problems
	Summary
	Example Problem Solutions
	Problems
	Case Problem
3 Linear Programming: Computer Solution and Sensitivity Analysis
	Computer Solution
		Management Science Application: Scheduling Air Ambulance Service in Ontario (Canada)
		Management Science Application: Improving Profitability at Norske Skog with Linear Programming
	Sensitivity Analysis
	Summary
	Example Problem Solutions
	Problems
	Case Problem
4 Linear Programming: Modeling Examples
	A Product Mix Example
		Time Out: for George B. Dantzig
	A Diet Example
	An Investment Example
	A Marketing Example
		Management Science Application: Scheduling Radio Ads with Analytics and Linear Programming
	A Transportation Example
	A Blend Example
	A Multiperiod Scheduling Example
		Management Science Application: Linear Programming Blending Applications in the Petroleum Industry
		Management Science Application: Employee Scheduling with Management Science
	A Data Envelopment Analysis Example
		Management Science Application: Evaluating American Red Cross Chapters Using DEA
	Summary
	Example Problem Solutions
	Problems
	Case Problem
5 Integer Programming
	Integer Programming Models
		Management Science Application: Selecting Volunteer Teams at Eli Lilly to Serve in Impoverished Communities
	Integer Programming Graphical Solution
	Computer Solution of Integer Programming Problems with Excel and QM for Windows
		Time Out: for Ralph E. Gomory
		Management Science Application: Scheduling Appeals Court Sessions in Virginia with Integer Programming
		Management Science Application: Forming Business Case Student Teams at Indiana University
	0–1 Integer Programming Modeling Examples
		Management Science Application: A Set Covering Model for Determining Fire Station Locations in Istanbul
	Summary
	Example Problem Solution
	Problems
	Case Problem
6 Transportation, Transshipment, and Assignment Problems
	The Transportation Model
		Time Out: for Frank L. Hitchcock and Tjalling C. Koopmans
		Management Science Application: Reducing Transportation Costs in the California Cut Flower Industry
	Computer Solution of a Transportation Problem
		Management Science Application: Analyzing Container Traffic Potential at the Port of Davisville (RI)
	The Assignment Model
	Computer Solution of an Assignment Problem
		Management Science Application: Supplying Empty Freight Cars at Union Pacific Railroad
		Management Science Application: Assigning Umpire Crews at Professional Tennis Tournaments
	Summary
	Example Problem Solution
	Problems
	Case Problem
7 Network Flow Models
	Network Components
	The Shortest Route Problem
	The Minimal Spanning Tree Problem
		Management Science Application: Determining Optimal Milk Collection Routes in Italy
	The Maximal Flow Problem
		Time Out: for E. W. Dijkstra, L. R. Ford, Jr., and D. R. Fulkerson
		Management Science Application: Distributing Railway Cars to Customers at CSX
	Summary
	Example Problem Solution
	Problems
	Case Problem
8 Project Management
	The Elements of Project Management
		Management Science Application: The Panama Canal Expansion Project
		Time Out: for Henry Gantt
		Mangement Science Application: Transportation Construction Projects
	CPM/PERT
		Time Out: for Morgan R. Walker, James E. Kelley, Jr., and D. G. Malcolm
	Probabilistic Activity Times
		Management Science Application: Salvaging the Costa Concordia Cruise Ship
	Microsoft Project
	Project Crashing and Time–Cost Trade‐Off
		Management Science Application: Reconstructing the Pentagon after 9/11
	Formulating the CPM/PERT Network as a Linear Programming Model
	Summary
	Example Problem Solution
	Problems
	Case Problem
9 Multicriteria Decision Making
	Goal Programming
	Graphical Interpretation of Goal Programming
	Computer Solution of Goal Programming Problems with QM for Windows and Excel
		Management Science Application: Workforce Planning for the U.S. Army Medical Department with Goal Programming
		Time Out: for Abraham Charnes and William W. Cooper
	The Analytical Hierarchy Process
		Management Science Application: Selecting Sustainable Transportation Routes Across the Pyrenees Using AHP
		Management Science Application: Ranking Twentieth‐Century Army Generals Using AHP
	Scoring Models
		Management Science Application: A Scoring Model for Determining U.S. Army Installation Regions
	Summary
	Example Problem Solutions
	Problems
	Case Problem
10 Nonlinear Programming
	Nonlinear Profit Analysis
	Constrained Optimization
	Solution of Nonlinear Programming Problems with Excel
	A Nonlinear Programming Model with Multiple Constraints
		Management Science Application: Making Solar Power Decisions at Lockheed Martin with Nonlinear Programming
	Nonlinear Model Examples
	Summary
	Example Problem Solution
	Problems
	Case Problem
11 Probability and Statistics
	Types of Probability
	Fundamentals of Probability
		Management Science Application: Treasure Hunting with Probability and Statistics
	Statistical Independence and Dependence
	Expected Value
		Management Science Application: A Probability Model for Analyzing Coast Guard Patrol Effectiveness
	The Normal Distribution
	Summary
	Example Problem Solution
	Problems
	Case Problem
12 Decision Analysis
	Components of Decision Making
	Decision Making Without Probabilities
		Management Science Application: Planning for Terrorist Attacks and Epidemics in Los Angeles County with Decision Analysis
	Decision Making with Probabilities
	Decision Analysis With Additional Information
	Utility
	Summary
	Example Problem Solutions
	Problems
	Case Problem
13 Queuing Analysis
	Elements of Waiting Line Analysis
	The Single‐Server Waiting Line System
		Time Out: for Agner Krarup Erlang
		Management Science Application: Using Queuing Analysis to Design Health Centers in Abu Dhabi
	Undefined and Constant Service Times
	Finite Queue Length
		Management Science Application: Providing Telephone Order Service in the Retail Catalog Business
	Finite Calling Population
	The Multiple‐Server Waiting Line
		Management Science Application: Making Sure 911 Calls Get Through at AT&T
	Additional Types of Queuing Systems
	Summary
	Example Problem Solutions
	Problems
	Case Problem
14 Simulation
	The Monte Carlo Process
		Time Out: for John Von Neumann
	Computer Simulation with Excel Spreadsheets
	Simulation of a Queuing System
		Management Science Application: Planning for Catastrophic Disease Outbreaks Using Simulation
	Continuous Probability Distributions
	Statistical Analysis of Simulation Results
		Management Science Application: Predicting Somalian Pirate Attacks Using Simulation
	Crystal Ball
	Verification of the Simulation Model
	Areas of Simulation Application
	Summary
	Example Problem Solution
	Problems
	Case Problem
15 Forecasting
	Forecasting Components
		Management Science Application: Forecasting Advertising Demand at NBC
	Time Series Methods
		Management Science Application: Forecasting Empty Shipping Containers at CSAV (Chile)
		Management Science Application Forecasting Trends for Denim Jeans
	Forecast Accuracy
	Time Series Forecasting Using Excel
		Management Science Application: Demand Forecasting at Zara
	Regression Methods
		Management Science Application: An Airline Passenger Forecasting Model
	Data Mining
	Summary
	Example Problem Solutions
	Problems
	Case Problem
16 Inventory Management
	Elements of Inventory Management
		Management Science Application: Inventory Optimization at Procter & Gamble
	Inventory Control Systems
		Time Out: for Ford Harris
	Economic Order Quantity Models
	The Basic EOQ Model
	The EOQ Model with Noninstantaneous Receipt
	The EOQ Model with Shortages
		Management Science Application: Inventory Management at Zara
	EOQ Analysis with QM for Windows
	EOQ Analysis with Excel and Excel QM
	Quantity Discounts
		Management Science Application: Quantity Discount Orders at Mars
	Reorder Point
	Determining Safety Stock by Using Service Levels
	Order Quantity for a Periodic Inventory System
	Summary
	Example Problem Solution
	Problems
	Case Problem
Appendix A Normal and Chi‐Square Tables
Appendix B Setting Up and Editing a Spreadsheet
Appendix C The Poisson and Exponential Distributions
Solutions to Selected Odd‐Numbered Problems
Glossary
Index