BU288 Lecture Notes - Lecture 5: Mathematical Model, Variable Cost, Fixed Cost
Document Summary
Bu 275 chapter 1 - management science. Scientific method: logical, systematic approach to problem solving observation, definition of the problem, model construction, model solution, and implementation of solution results. Problems aren"t always result of crisis that must be reacted to but frequently involve anticipatory or planning situation. Management scientist: person skilled in the application of management science. Improperly defining problem results in no solution or inappropriate solution limits must be included in problem definition. Stated objective helps focus attention on what problem actually is. Model: abstract mathematical representation of a problem situation. Management science model usually consists of a set of mathematical relationships made up of numbers and symbols. Parameters: constant values that are often coefficients of variables in equations. Variable: symbol used to represent an item that can take on any value. Data: pieces of information from the problem environment. A model is a functional relationship that includes variables, parameters, and equations.
