As we have been talking about “Math and the MBA” many of you have mentioned the importance of understanding profit/loss, break-even, inventory, etc. to be an effective manager.
There are many mathematical algorithms which are used to solve key business problems. UPS uses many algorithms to optimize the delivery of their packages. The following article Wohlsen (2013) discusses the algorithms behind UPS’s new delivery routing system and the estimated savings from this system.
Can any of you provide another example where a mathematical algorithm is used to make key business decisions? Either in real-time or for long-term planning?
Wohlsen, Marcus (June 13, 2013). The Astronomical Math Behind UPS’ New Tool to Deliver Packages Faster. Retrieved from Wired.com.
1. How important is it that you learn to use mathematics to solve problems
2. How valuable is an MBA degree without the ability to identify the cost of a company’s capital, its return on investment, gross margin percentage, break-even point, or what percent of a population would be willing to buy its product?
An easy way to remember the order of operations is with the acronym PEDMAS (Parentheses, Exponents, Multiplication, Division, Addition, and Subtraction).
The following 2-minute video provides a good refresher for this important concept in math.
Kotchian, Vince (March 11, 2016). Integers: Factors, multiples, and remainders. GRE Test Prep. Retrieved fromLynda.com.