MANAGEMENT SCIENCE THEORY

Management Science Theory gives a quantitative basis for decision making. It specifically deals with the development of mathematical models to aid in decision making and problem solving. This theory holds that managing is a logical and rationale process, so it can be expressed in terms of mathematical models, Mathematical models are simplified representation of a system, process, or relationships. It is also called 'Operation Research', 'Mathematical School', or 'Quantitative Approach'.Management Science Theory uses quantitative techniques and mathematical models for managing decisions. The techniques commonly used for managerial decisions. The techniques commonly used for managerial decision-making include linear programming, critical path method, program evaluation review technique, games theory,queuing theory ana break-even analysis. This theory focuses on solving technical rather than human behavior problem. It is characterized by:

1.Primary focus on decision making
2.Based on economic decision theory
3.Use of formal mathematical models
4.Frequent use of computers.

The Management Science Theory has made significant contributions by applying the tools of mathematics to the solution of various complex problems of management. The exponents of this theory believe all the phases of management can be expressed in quantitative terms for analysis.It has developed quantitative tools in solving technical problems and forecasting.