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CMA Foundation · Fundamentals of Business Economics and Management · Introduction to Management

A logistics company uses linear programming and simulation models to decide the least-cost way of allocating its trucks among routes. Which modern approach to management is being used?

The company is using the quantitative, or management science, approach. This approach applies mathematical and statistical tools such as linear programming and simulation to decisions like allocating trucks among routes at least cost. Behavioural and bureaucratic approaches deal with people or rules instead of optimisation models.

  1. AQuantitative (management science) approachCorrect
  2. BHuman relations approach
  3. CBehavioural approach
  4. DBureaucratic approach

Explanation

The quantitative or management science approach applies mathematical and statistical techniques such as linear programming and simulation to decision problems like resource allocation. Human relations and behavioural approaches study people, and the bureaucratic approach deals with rules and hierarchy, so none fits the use of optimisation models.

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