The study of the formal application of  management science to effective

decision making of businesses can be traced way back in the twentieth
century. These mathematical applications have been very helpful in solving
complex problems in varied areas of businesses. This is very essential in
today's world as we are experiencing change almost every day. Knowledge
on quantitative methods is a must for companies in order to arrive with a 
better and efficient decision.
What is Management Science?
         Management Science (MS) known to some as quantitative analysis (QA),
quantitative methods (QM), and operations research (OR) is the discipline of using
scientific approach to make rational and efficient decisions.  In this field of study, raw
data is processed and transformed to produce significant information. This is shown in
figure 1.

Figure 1. MS Simple Process

         Raw data may appear to be meaningless but when analyzed using analytical
methods  can provide very meaningful information that could be basis for decision
making. 
         While the method is quantitative, both quantitative and qualitative factors should
be considered by decision makers when solving a problem. A clear distinction between
these two factors is presented in Table 1.
Table 1. Quantitative  vs. Qualitative Factors

Perspectives Definition Examples

can be precisely computed; unemployment rate, cost of
Quantitative Factors
more of activity of the brain labor, demand and supply
challenging to calculate but
weather, laws, technological
Qualitative Factors influence decision; more of
breakthrough
activity of the heart

      Results of quantitative methods are analyzed along with qualitative factors before
arriving with final decisions.

Applications of Management Science

       Management Science is used to support decision making in numerous fields like
transportation, logistics, and supply chain management.  Read the article in Science
Direct about the applications of Management Science/Quantitative Method from

History of Management Science

       Management Science is generally believed to exist during Second  World War in
the pursuit of managing limited resources. Second World War involved strategic and
tactical issues that were highly complicated which necessitated  groups of individuals
who were collectively considered specialists in mathematics, economics, statistics and
probability theory, engineering, behavioral, and physical science to form special units
within the armed forces.

                               Source: https://www.britannica.com/event/World-War-II     

           After Second World War, scientists who had been active in the military
operations research groups applied the approach to nonmilitant concerns related to
business, industry, research, and the like.  According to Sharma (2016), "the following
three factors are behind the appreciation for the use of OR approach:
(i) The economic and industrial boom resulted in mechanization, automation and
decentralization of operations and division of management functions. This
industrialization resulted in complex managerial problems, and therefore the application
of operations research to managerial decision making became popular.
(ii) Continued research after war resulted in advancements in various operations
research techniques. In 1947, G B Dantzig, developed the concept of linear
programming, the solution of which is found by a method known as simplex method.
Besides linear programming, many other techniques of OR, such as statistical quality
control, dynamic programming, queuing theory and inventory theory were well-
developed before 1950’s.
(iii) The use of high speed computers made it possible to apply OR techniques for
solving real-life decision problems."
        Today, varied organizations such as schools, banks, hospitals, libraries, airlines,
railways, fast food, manufacturing, supermarkets,  etc., all acknowledge the efficacy of
quantitative methods.

Quantitative Methods/Management Science Approach

          The QM/MS approach as depicted in Figure 2 consists of the following steps
namely: defining a problem, developing a model, acquiring input data, developing a
solution, testing the solution, analyzing the results, and implementing the results.

Figure 2. Quantitative Methods/Management Science Approach

        "One step does not have to be finished completely before the next is started; in
most cases, one or more of these steps will be modified to some extent before the final
results are implemented. This would cause all of the subsequent steps to be changed.
In some cases, testing the solution might reveal that the model or the input data are not
correct. This would mean that all steps that follow defining the problem would need to
be modified." (Render, et.al, 2015).

QM/MS Approach: The Case of LMS Food Cafe

      
         There is a  number of food companies that offer nourishment in the Philippines.
Most of them are owned by big corporations while some are family businesses. The
food market can be divided into a variety of sectors, by categories of food and
restaurants.  In terms of food categories, they can be classified as carbohydrates,
protein, and fats.  For restaurants, this could be a quick service (fast food) or fine dining
restaurants, etc. 
          One food company is LMS Food Cafe managed by Ms. Santos. It is a small
restaurant located in the city selling a few meals and drinks. Meals include rice meals,
pasta, burger, and some viand. For the drinks, it offers juices, soda, milk tea, coffee,
and water. It caters to customers who dine-in or take-out.
         As COVID-19 continues to spread across the globe, LMS Food Cafe is one of
those food companies that experienced a great drop in their sales.  It was forced to
close the business for three months due to the implementation of enhanced community
quarantine.  They only received orders from families and friends.  Seemingly, the usual
customers of food companies now prefer home-cooked meals.  Some have also
become more particular in their food intake.  This declining sale has resulted in laying
off employees to cut on expenses.  According to an article posted in CNN Philippines,
the COVID-19 pandemic rendered more Filipinos jobless, with the Philippine Statistics
Authority reporting 7.3 million unemployed adults in April 2020 (Luz, 2020).
        The existence of delivery services has been giving food companies like LMS Food
Cafe the hope to continue their business. However, some entail an additional cost for
their customers. Also, there is a limitation in the coverage area. LMS Food Cafe
manager is thinking of redesigning the operations of the cafe to regain the business.

Step 2: Developing a Model

                A model is a portrayal (usually mathematical) of a situation.  It is an
abstraction of a real life problem. To create one, you must establish relationship among
variables. Your model can be used to analyze, understand and describe certain features
of a system. Figure 4 presents some kinds of models.

schematic
scale/iconic model
model mathematical model
(a physical
(a picture, (established
representation
drawing, or mathematical relationships)
of what to construct)
chart of reality)
 Source: Lipa Status: Lipa City
Community Park Rehabilitation

Source: CRESCIT
Magazine Issue 1 (2-
25-2020)

Figure 4.  Kinds of Models

What could be the model for LMS Food Cafe case?
       For a simple illustration, we can just use the  mathematical model of break-even
point as the company's initial target to recover from losses:

Step 3: Acquiring Input Data

          After developing the model,  needed data for the model should be obtained next.
While wrong problem will not lead to correct answers, inaccurate and wrong data will
produce  misleading results  as shown in figure 5. 

Quantitative
Garbage In Garbage Out
Methods

        Figure 5.  Acquiring Input Data

Data may be gathered from different sources like surveys, interviews, reports, etc.
For the case of LMS Food Cafe, what data will we need?
        For quantitative data, we may need to look for food prices, delivery charges,
distances, etc. While for qualitative factors, we might look into the status of infections
and medical updates.
 tep 4: Developing a Solution
            This step involves manipulating the model to reach the best possible solution . 
This could be done using a number of ways but the most common techniques as
mentioned by Render, et. al., (2015) include:

 Solving equations.
 Trial and error – trying various approaches and picking the best result.
 Complete enumeration – trying all possible values.
 Using an algorithm – a series of repeating steps to reach a solution.

In LMS Food Cafe,  what is the best technique to use?

       Well, we can solve using our equation/s.

Step 5: Testing the Solution

Source: Pinterest

          As previously discussed, we must have accurate and complete data. The input
data and model will determine the accuracy of the result. We may substitute values in
the model to determine if the solution is valid or not. It is best that you test your input
data before analyzing your results. In some cases, you may need to do validation of
your gathered data.
 
How can this be done for LMS Food Cafe?
If the initial data were taken from company reports and documents, you may want to
consider conducting a survey or interview to previous customers.

Step 6: Analyzing the Results

          This step begins with determining the implications of the solution. As what we
usually hear, change is the only constant thing in  this world. In majority of situations, a
solution to a problem is followed with some kind of activities or change in the operations
of a company. The management should be proactive especially in these cases. They
must determine and analyze the implications of these activities or changes before
implementing  the results.

 
 
 

 
 
 
For the case of LMS Food Cafe, what could be analyzed?
The management must conduct sensitivity analysis of the different possible scenarios
that they may encounter as a result of their thought of solutions.

Step 7: Implementing the Results

 
      Down to our last step, which is the implementation of the results. This is the time we
incorporate the solution into the organization. While the first step may be considered
difficult as initial evaluation is really a tedious task, this last step can be much more hard
than you can think of.  There are many beautiful ideas but did not materialize due to the
resistance of the people.
          
       After  implementation of the solution, closely monitoring is  a must. Over the years,
there may be a lot of changes that call for revisions of the initial solution. A changing
economy, fluctuating demand, and model improvements requested by management are
only a few examples of changes that might require the analysis to be modified (Render,
et. al, 2015).
 
For the case of LMS Food Cafe, what could be implemented?
Well, this will depend on the results of the analysis of the solution.