chap1review - BIT Exam Review Questions Chapter 1 1 What is...

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BIT Exam Review Questions Chapter 1 1. What is management science and by what other names is it referred? a. The application of a scientific approach to solving management problems in order to help managers make better decisions b. Operations research, quantitative methods, quantitative analysis, and decision sciences 2. Management Science involves the philosophy of what? a. Involves the philosophy of approaching a problem in a logical manner (i.e. a scientific approach) 3. What are the steps in the management science approach to problem solving? Be able to explain each step. a. Observation i. Identification of a problem that exists in the system ii. Continuously and closely observed so that problems can be identified as soon as they occur or are anticipated iii. Person who normally identifies a problem is the manager because managers work in places where problems might occur iv. Can also be identified by a management scientist who has been hired specifically to solve problems using management science techniques b. Definition of the problem i. Once it has been determined that a problem exists, the problem must be clearly and concisely defined 1. Improperly defining a problem can easily result in no solution or an inappropriate solution ii. A stated objective helps to focus attention on what the problem actually is c. Model construction i. A management science model is an abstract representation of an existing problem situation ii. Can be in the form of a graph or chart, but most frequently a set of mathematical relationships 1. Ex] Product costs $5 to produce and sells for $20 d. Model solution i. Once models have been constructed, they are solved using the management science techniques ii. It is information that serves as a recommendation or guideline, helping the manager making a decision 1. Some management science techniques do not generate an answer or recommended decision 2. Provide descriptive results: Results that describe the system being modeled e. Implementation
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i. The actual use of the model once it has been developed or the solution to the problem the model was developed to solve 4. What are the components of a management science model? Be able to describe each one. a. See question 5 5. Be able to recognize, identify, define, and describe the components of the following: Maximize Z = $20x – 5x Subject to: 4x = 100 i. X represents the number of units of the product that are sold i. Independent variable ii. Also a decision variable ii. Z represents the total profit that results from the sale of the product i. Dependent variable ii. Function of X iii. $20 and $5 in the equation are parameters i. Derived from data ii. Model is only as accurate as the data used in constructing the model iv. Equation as a whole is known as a functional relationship i. Derived from the fact that profit, Z, is a function of the number of units sold, x, and the equation relates profit to units sold v. The profit function is an objective function , and the resource
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This note was uploaded on 03/28/2010 for the course BIT 2406 taught by Professor Llclark during the Fall '07 term at Virginia Tech.

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chap1review - BIT Exam Review Questions Chapter 1 1 What is...

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