We continue to place emphasis on model building and computer applcations to help students understand how the techniques presentaed in this book are actually used in business today. In each chapter, managerial problems are presented to provide motivation for elarning the tachniques that can be used to address these problems. Next, the mathematical models, with all necessary assumptions, are presented in a clear and concise fashion. The techniques are applied to the sample problems with complete details provided. We have found that this method of this presentation is very effective, and students are very appreciative of this approach. If the mathematical computations for a technique are very detailed, the mathematical details are presented in such a way that the instructor can easily omit these sections without interrupting the flow of material. The use of computer software allows the instructor to focus on the managerial problem and spend less time on the mathematical details of the logaritms. Computer output is provided for many examples.