QUANTI Flashcards
scientific approach to
managerial decision making whereby raw data are
processed and manipulated resulting in meaningful
information
Quantitative analysis
might be different
investment
alternatives, interest
rates, inventory
levels, demand, or
labor cost
Quantitative Factors
such as the weather,
state
and
local
legislation,
technology
breakthroughs
should
also
considered.
Qualitative Factors
Information may be
difficult to quantify
but can affect the
decision making
process.
Qualitative factors
Seven Quantitative Analysis Approach
- Defining the Problem
- Developing a Model
- Acquiring Input Data
- Developing a Solution
- Testing the Solution
- Analyzing the Results
- Implementing the Results
Seven Quantitative Analysis Approach:
This may be the most important and difficult step.
Defining the Problem
Seven Quantitative Analysis Approach:
It is essential to go beyond symptoms and
identify true causes.
Defining the Problem
Seven Quantitative Analysis Approach:
May be necessary to concentrate on only a few
of the problems– selecting the right problems is
very important.
Defining the Problem
Seven Quantitative Analysis Approach:
Specific and measurable objectives may have to
be develop
Defining the Problem
Seven Quantitative Analysis Approach:
Quantitative analysis models are realistic,
solvable, and understandable mathematical
representations of a situation.
Developing a Model
Seven Quantitative Analysis Approach:
Models generally contain variables (controllable
and uncontrollable) and parameters.
Developing a Model
Seven Quantitative Analysis Approach:
Controllable variables are generally the decision
variables and are generally unknown.
Developing a Model
Seven Quantitative Analysis Approach:
Parameters are known quantities that are a part
of the problem.
Developing a Model
Prototype or Physical Object
Scale Models
Graphical Presentation or Symbols
Schematic Models
Seven Quantitative Analysis Approach:
Data may come from a variety of sources such as company reports, company documents, interviews, on-site direct measurement, or statistical sampling
Acquiring Input Data
Seven Quantitative Analysis Approach:
The best (optimal) solution to a problem is found by
manipulating the model variables until a solution is
found that is practical and can be implemented
Developing a Solution
Four Common technique in Developing a Solution
Solving
Trial and Error
Complete enumeration
Algorithm
Four Common technique in Developing a Solution:
trying various approaches and
picking the best result
Trial and Error
Four Common technique in Developing a Solution:
trying all possible
values
Complete Enumeration
Four Common technique in Developing a Solution:
a series of repeating steps
to reach a solution
Algorithm
Seven Quantitative Analysis Approach:
Both input data and the model should be tested for
accuracy before analysis and implementation
Analyzing the Results
Seven Quantitative Analysis Approach:
Making sure the solution works properly and is accurate
Testing the Solution
Seven Quantitative Analysis Approach:
Result should be logical, consistent, and represent the real situation
Analyzing the Results
