The Seven-Step Modeling Process

1. Problem Definition
Define the organization's problem
Include specifying the organization's objectives and the parts of the organization that must be studied before the problem can be solved


2. Data Collection
Collect data to estimate the value of parameters that affect the organization's problem.
These estimates are used to develop a mathematical model of the organization's problem and predict solutions.


3. Model Development
Develop a model of the problem.Most realistic applications are so complex, however, that an analytical model does not exist or is too complex to work with.


4. Model Verification
How well the model fits reality is to check whether the model is valid for the current situation.


5. Optimization and decision making
Given an model and a set of possible decisions, must now choose the decision or strategy that best meets the organization's objectives.


6. Model communication toe management
Present several alternatives and let the organization choose the best one


7. Model Implementation
If the organization has accepted the validity and usefulness of the study, The implemented system must be monitored constantly to ensure that the model enables the organization to meet its objectives.

Refer from : [Management Science Modeling], International student edition, 2007, Thomson