Introduction to management science

Cover......Page 1
Title Page......Page 4
Copyright Page......Page 5
Brief Contents......Page 8
Contents......Page 9
Preface......Page 14
Chapter 1 Management Science......Page 22
 The Management Science Approach to Problem Solving......Page 23
  Time Out: for Pioneers in Management Science......Page 26
  Management Science Application: Room Pricing with Management Science at Marriott......Page 27
 Management Science and Business Analytics......Page 28
 Model Building: Break-Even Analysis......Page 29
 Computer Solution......Page 33
 Management Science Modeling Techniques......Page 36
  Management Science Application: The Application of Management Science with Spreadsheets......Page 37
 Business Usage of Management Science Techniques......Page 39
  Management Science Application: Management Science in Health Care......Page 40
 Management Science Models in Decision Support Systems......Page 41
 Summary......Page 42
 Problems......Page 43
 Case Problems......Page 49
Chapter 2 Linear Programming: Model Formulation and Graphical Solution......Page 52
 A Maximization Model Example......Page 53
  Time Out: for George B. Dantzig......Page 54
 Graphical Solutions of Linear Programming Models......Page 57
 A Minimization Model Example......Page 69
  Management Science Application: Determining Optimal Fertilizer Mixes at Soquimich (South America)......Page 73
 Irregular Types of Linear Programming Problems......Page 75
 Characteristics of Linear Programming Problems......Page 78
 Example Problem Solutions......Page 79
 Problems......Page 83
 Case Problems......Page 92
Chapter 3 Linear Programming: Computer Solution and Sensitivity Analysis......Page 95
 Computer Solution......Page 96
  Management Science Application: Scheduling Air Ambulance Service in Ontario (Canada)......Page 101
  Management Science Application: Improving Profitability at Norske Skog with Linear Programming......Page 102
 Sensitivity Analysis......Page 103
 Example Problem Solutions......Page 114
 Problems......Page 117
 Case Problems......Page 131
Chapter 4 Linear Programming: Modeling Examples......Page 134
 A Product Mix Example......Page 135
 A Diet Example......Page 140
 An Investment Example......Page 143
  Management Science Application: A Linear Programming Model for Optimal Portfolio Selection at GE Asset Management......Page 148
 A Marketing Example......Page 149
 A Transportation Example......Page 153
 A Blend Example......Page 156
 A Multiperiod Scheduling Example......Page 160
  Management Science Application: Linear Programming Blending Applications in the Petroleum Industry......Page 161
  Management Science Application: Employee Scheduling with Management Science......Page 163
 A Data Envelopment Analysis Example......Page 165
  Management Science Application: Measuring Asian Ports’ Efficiency Using Dea......Page 167
 Summary......Page 169
 Example Problem Solution......Page 170
 Problems......Page 172
 Case Problems......Page 201
Chapter 5 Integer Programming......Page 206
 Integer Programming Models......Page 207
 Integer Programming Graphical Solution......Page 210
 Computer Solution of Integer Programming Problems with Excel and QM for Windows......Page 212
  Time Out: for Ralph E. Gomory......Page 213
  Management Science Application: Scheduling Appeals Court Sessions in Virginia with Integer Programming......Page 216
 0–1 Integer Programming Modeling Examples......Page 221
 Summary......Page 230
 Problems......Page 231
 Case Problems......Page 248
Chapter 6 Transportation, Transshipment, and Assignment Problems......Page 258
 The Transportation Model......Page 259
  Time Out: for Frank L. Hitchcock and Tjalling C. Koopmans......Page 261
 Computer Solution of a Transportation Problem......Page 262
  Management Science Application: Analyzing Container Traffic Potential at the Port of Davisville (RI)......Page 268
 The Assignment Model......Page 272
 Computer Solution of an Assignment Problem......Page 273
  Management Science Application: Improving Financial Reporting with Management Science at Nestlé......Page 276
  Management Science Application: Assigning Umpire Crews at Professional Tennis Tournaments......Page 277
 Example Problem Solution......Page 278
 Problems......Page 279
 Case Problems......Page 307
Chapter 7 Network Flow Models......Page 316
 Network Components......Page 317
 The Shortest Route Problem......Page 318
 The Minimal Spanning Tree Problem......Page 326
  Management Science Application: Determining Optimal Milk Collection Routes in Italy......Page 329
 The Maximal Flow Problem......Page 330
  Time Out: for E. W. Dijkstra, L. R. Ford, Jr., and D. R. Fulkerson......Page 331
  Management Science Application: Distributing Railway Cars to Customers at CSX......Page 332
 Example Problem Solution......Page 337
 Problems......Page 339
 Case Problems......Page 359
Chapter 8 Project Management......Page 367
 The Elements of Project Management......Page 368
  Management Science Application: Google, Facebook, and Apple “Cloud” Projects......Page 370
  Time Out: for Henry Gantt......Page 374
  Management Science Application: An Interstate Highway Construction Project in Virginia......Page 376
 CPM/PERT......Page 377
  Time Out: for Morgan R. Walker, James E. Kelley, Jr., and D. G. Malcolm......Page 379
 Probabilistic Activity Times......Page 386
  Management Science Application: Global Construction Mega-Projects......Page 392
 Microsoft Project......Page 393
 Project Crashing and Time–Cost Trade-Off......Page 397
  Management Science Application: Reconstructing the Pentagon After 9/11......Page 401
 Formulating the CPM/PERT Network as a Linear Programming Model......Page 402
 Summary......Page 409
 Example Problem Solution......Page 410
 Problems......Page 412
 Case Problems......Page 433
Chapter 9 Multicriteria Decision Making......Page 436
 Goal Programming......Page 437
 Graphical Interpretation of Goal Programming......Page 441
  Management Science Application: Developing Television Advertising Sales Plans at NBC......Page 444
  Time Out: for Abraham Charnes and William W. Cooper......Page 448
  Management Science Application: Selecting Sustainable Transportation Routes Across the Pyrenees Using AHP......Page 451
  Management Science Application: Ranking Twentieth-Century Army Generals Using AHP......Page 458
 Scoring Models......Page 461
 Summary......Page 463
 Example Problem Solutions......Page 464
 Problems......Page 467
 Case Problems......Page 502
Chapter 10 Nonlinear Programming......Page 507
 Nonlinear Profit Analysis......Page 508
 Constrained Optimization......Page 511
 Solution of Nonlinear Programming Problems with Excel......Page 513
 A Nonlinear Programming Model with Multiple Constraints......Page 517
  Management Science Application: Making Solar Power Decisions at Lockheed Martin with Nonlinear Programming......Page 518
 Nonlinear Model Examples......Page 519
 Summary......Page 524
 Problems......Page 525
 Case Problems......Page 530
Chapter 11 Probability and Statistics......Page 532
 Types of Probability......Page 533
 Fundamentals of Probability......Page 535
  Management Science Application: Treasure Hunting with Probability and Statistics......Page 537
 Statistical Independence and Dependence......Page 538
 Expected Value......Page 545
  Management Science Application: A Probability Model for Predicting Earthquakes in China......Page 546
 The Normal Distribution......Page 547
 Example Problem Solution......Page 557
 Problems......Page 559
 Case Problem......Page 565
Chapter 12 Decision Analysis......Page 567
 Components of Decision Making......Page 568
 Decision Making without Probabilities......Page 569
 Decision Making with Probabilities......Page 576
 Decision Analysis With Additional Information......Page 590
  Management Science Application: The Use of Decision Analysis to Determine the Optimal Size of the South African National Defense Force......Page 596
 Utility......Page 597
 Summary......Page 598
 Example Problem Solution......Page 599
 Problems......Page 602
 Case Problems......Page 623
Chapter 13 Queuing Analysis......Page 628
 Elements of Waiting Line Analysis......Page 629
 The Single-Server Waiting Line System......Page 630
  Time Out: for Agner Krarup Erlang......Page 631
  Management Science Application: Using Queuing Analysis to Design Health Centers in Abu Dhabi......Page 638
 Undefined and Constant Service Times......Page 639
 Finite Queue Length......Page 642
 Finite Calling Population......Page 645
 The Multiple-Server Waiting Line......Page 648
  Management Science Application: Making Sure 911 Calls Get Through at AT&T......Page 651
 Additional Types of Queuing Systems......Page 653
 Example Problem Solutions......Page 654
 Problems......Page 656
 Case Problems......Page 665
Chapter 14 Simulation......Page 668
 The Monte Carlo Process......Page 669
 Computer Simulation with Excel Spreadsheets......Page 674
 Simulation of a Queuing System......Page 679
  Management Science Application: Planning for Catastrophic Disease Outbreaks Using Simulation......Page 682
 Continuous Probability Distributions......Page 683
 Statistical Analysis of Simulation Results......Page 688
  Management Science Application: Predicting Somalian Pirate Attacks Using Simulation......Page 689
 Crystal Ball......Page 690
 Areas of Simulation Application......Page 697
 Summary......Page 698
 Example Problem Solutions......Page 699
 Problems......Page 702
 Case Problems......Page 716
Chapter 15 Forecasting......Page 720
 Forecasting Components......Page 721
  Management Science Application: Forecasting Advertising Demand at NBC......Page 723
 Time Series Methods......Page 724
  Management Science Application: Forecasting Empty Shipping Containers at CSAV (Chile)......Page 728
  Management Science Application: Forecasting at Heineken USA......Page 733
 Forecast Accuracy......Page 736
 Time Series Forecasting Using Excel......Page 740
  Management Science Application: Demand Forecasting at Zara......Page 741
 Regression Methods......Page 744
  Management Science Application: An Airline Passenger Forecasting Model......Page 748
 Data Mining......Page 753
 Example Problem Solutions......Page 754
 Problems......Page 757
 Case Problems......Page 782
Chapter 16 Inventory Management......Page 786
 Elements of Inventory Management......Page 787
  Management Science Application: Inventory Optimization at Procter & Gamble......Page 789
 Inventory Control Systems......Page 790
 Economic Order Quantity Models......Page 791
 The Basic EOQ Model......Page 792
 The EOQ Model with Noninstantaneous Receipt......Page 797
 The EOQ Model with Shortages......Page 800
 EOQ Analysis with QM for Windows......Page 803
 EOQ Analysis with Excel and Excel QM......Page 804
 Quantity Discounts......Page 805
  Management Science Application: Quantity Discount Orders at Mars......Page 808
 Reorder Point......Page 809
 Determining Safety Stock by Using Service Levels......Page 811
 Order Quantity for a Periodic Inventory System......Page 813
 Example Problem Solution......Page 815
 Problems......Page 817
 Case Problems......Page 825
 Normal and Chi-Square Tables......Page 828
 Setting Up and Editing a Spreadsheet......Page 830
 The Poisson and Exponential Distributions......Page 834
 Solutions to Selected Odd-Numbered Problems......Page 836
Glossary......Page 846
 C......Page 851
 E......Page 852
 G......Page 853
 L......Page 854
 M......Page 855
 P......Page 856
 S......Page 857
 V......Page 858
 Z......Page 859