Abstract
With the advent of the computer has come the science of operations research. Complex business problems of a quantifiable nature, which in the past required days or weeks of rigorous mathematical calculations to solve, can now be simulated in minutes through the use of the computer. This is accomplished by developing a computer model. Essentially, this involves expressing in mathematical form a given set of circumstances which we wish to simulate. Given the mathematical description of the problem, a computer program is written which will accept variable inputs to the models' equations, solve for the unknowns, and provide values for the unknowns being sought. Through the use of such computer models, business managers can better assess the long-term impact of short-term decisions, thereby avoiding decisions which would in the long run be detrimental to the firm. This paper will be devoted to an analysis of one such computerized business model, specifically a marketing model utilized by Northern Natural Gas Company of Omaha, Nebraska to project future populations for geographic areas served by the firm. Through this analysis it is hoped that a greater appreciation might be gained as to the usefulness of the modeling approach as a management tool. Certainly, in this age of accelerating technological change, effective management without the use of this powerful tool becomes increasingly difficult. Before proceeding to the paper proper, I would like to give credit to the many employees of Northerns' marketing and business systems departments who provided invaluable guidance in the formulation of this analysis. Without it, the task would have been greatly complicated.