By Stephen G. Powell, Kenneth R. Baker
Now in its 3rd variation, Management Science is helping company pros achieve the basic abilities had to improve genuine services in enterprise modeling. the most important swap within the textual content is the conversion of software program from Crystal Ball to danger Solver to mirror alterations within the box. extra insurance of administration technology subject matters has been further. Broader assurance of Excel demonstrates tips on how to create types. extra open-ended case stories which are much less dependent have additionally been integrated besides new workouts. those adjustments can assist enterprise execs how one can observe the data within the box.
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Additional info for Management Science: The Art of Modeling with Spreadsheets (3rd Edition)
D. 2008. Turning Numbers into Knowledge: Mastering the Art of Problem Solving. 2d ed. Oakland, CA: Analytics Press. , K. Smith, and A. Bleloch. 1994. How to Model It. New York: McGraw-Hill. 1 Modeling in a ProblemSolving Framework INTRODUCTION Modeling is an approach that helps us develop a better understanding of business situations. As a result, it helps us make better decisions. Thus, we don’t view modeling as an end in itself, but rather as part of the broader process of business decision making.
Imagine the situation facing a manufacturing company whose costs are rising sharply due to increasing wages. Here are some possible problem statements the company could use: In what ways might we increase the productivity of our workforce? In what ways might we reduce the labor content of our products? In what ways might we shift our manufacturing to lower-cost regions? In what ways might we increase revenues to keep pace with costs? In what ways might we change our product line to maintain profit margins?
Nevertheless, the process passes through the stages we have outlined here. Knowledge of these stages is helpful in planning the overall tasks and resources, allocating effort, and setting expectations about progress. Within each stage, an awareness of the contributions from divergent and convergent thinking is helpful in balancing the need for creativity with the need for closure. It is worth repeating that only rarely are these six stages followed in a strict sequence. Most problem-solving processes move back and forth from one stage to another, perhaps rethinking the problem statement while evaluating solutions, or returning to an information-gathering mode while searching for solutions.