[2018] Q) Define what is meant by Management Science (MS)? How can management science be used to improve the performance of the contemporary firms? [25m] Answer Plan: Provide some textbook definition of MS. Important to mention that it is an outgrowth of scientific management and Taylorism. Use of quantitative data and models. MS can be used in a variety of ways: I. Improves management of inventory. Use of data and algorithms to suit the needs of the business (optional: mention article on the office space crunch given in part 6.4 of Block 7). A good inventory system means less money tied in working capital, guards against obsolescence, reduces damage, enables the organization to meet customer's demands instantaneously, helps manage admin, store, and insurance costs. Iv. Better queue management. The use of algorithms. Discuss how data on queues such as arrival times, mean waiting time, average processing times can be utilized to model queue behavior (given in section 3.2). Application in healthcare sector, call centers, retail outlets, transportation, and manufacturing. V. More ergonomic and efficient. MS also used for workplace management-> the use of wearables such as smart watches, glasses (augmented reality), exoskeletons. vi. MS applied in lean operations (minimizing waste, maximum efficiency etc.). Example of Toyota's approach. . Some problems with using MS as algorithms do not reflect the true nature of the world. Unrealistic Assumption of static demand -> given in guide under EO