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1. Define the terms management science and operations research.
2. List and discuss the steps of the decision-making process.
3. Discuss the different roles played by the qualitative and quantitative approaches to managerial decision making. Why is it important for a manager or decision maker to have a good understanding of both of these approaches to decision making?
4. The O’Neill Shoe Manufacturing Company will produce a special-style shoe if the order size is large enough to provide a reasonable profit. For each special-style order, the company incurs a fixed cost of $2000 for the production setup. The variable cost is $60 per pair, and each pair sells for $80.
a. Let x indicate the number of pairs of shoes produced. Develop a mathematical model for the total cost of producing x pairs of shoes.
b. Let P indicate the total profit. Develop a mathematical model for the total profit realized from an order for x pairs of shoes.
c. What is the breakeven point?
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