Models

This document explains one of the key Decision Making Tools in Operations Management: Models.

Here is an easy-to-understand explanation of what models are and their different types:

💡 Models: Tools for Decision Making

A model is simply an abstract representation of reality. Think of it as a simplified version or a replica of a real-world situation that is used to develop a structure, evaluate, and make decisions in a very straightforward manner.

Operations managers use these models to test ideas and predict outcomes without having to experiment with the real, complex system.

Models for decision-making can be classified into three main types:

1. Physical Models

These are physical representations of various entities. They visually resemble the reality they represent, which makes evaluation and decision-making very simple.

* Examples: Models of buildings, cars, airplanes, or a scale model of a factory floor layout.

2. Schematic Models

These models are illustrated using graphs, charts, tables, drawings, or designs.

* They are highly advantageous because they are easy to construct, develop, or change.

* Examples: A flow chart showing a production process, a blueprint of a product, a bar graph showing inventory levels, or a design/drawing of a new part.

3. Mathematical Models

These are the most abstract type and have the least potential to physically represent their real-life counterparts.

* Examples: Using formulas, equations, and symbols to represent a system. For instance, the formula for calculating the Economic Order Quantity (EOQ) in inventory management.

* They are typically the easiest to manipulate and solve using technologies like computers.

Would you like to know more about a specific type of model, such as an example of a mathematical model used in operations management?