Key MBA Models

PART SEVEN

Operations

Operations management refers to the models and techniques companies use for manufacturing products and services. These models are mostly concerned with efficiency and quality, and they have historically been dominated by engineers and statisticians who use quantitative methods to design well-functioning systems. In many business schools, classes in statistical analysis and decision making are also taught alongside operations classes, and we include a few of these models here. Specifically, we discuss ‘decision trees’ as a useful way of thinking through options under complex conditions, and we describe ‘sensitivity analysis’ as a way of working through the uncertainties around a recommended course of action.

In terms of describing ...