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National Venture Capital Association and Thomson Reuters April, 2008. pdf. THE ART AND SCIENCE OF MANAGEMENT One of the enduring questions in the field of management is whether management is an art or a science. ’’ Reflected in the differences in these definitions is the use of precision in science, in that there is a particular, prescribed way in which a manager should act. Thus, management as a science would indicate that in practice, managers use a specific body of information and facts to guide their behaviors, but that management as an art requires no specific body of knowledge, only skill.

When capacity is dictated somewhat by machine capability, reasonably accurate measures of capacity are not extremely difficult to develop. However, services generally have variable processing requirements that make it difficult to establish a suitable measure of capacity. Historically, services are much more labor intensive than manufacturing, where labor averages 10 percent (or less) of total cost. This labor intensity can actually be an advantage because of the variety of service requirements an individual can handle.

Supply Chain Management: Strategy, Planning and Operation, by Sunil Chopra and Peter Meindl, provides an excellent example of the use of linear programming in aggregate planning. Mixed-Integer Programming. For aggregate plans that are prepared on a product family basis, where the plan is essentially the summation of the plans for individual product lines, mixed-integer programming may prove to be useful. Mixed-integer programming can provide a method for determining the number of units to be produced in each product family.

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