PRODUCT 1 QUANTITATIVE DECISION MAKING -- AN OVERVIEW
Aims After learning this unit, you should be capable of: вЂў вЂў вЂў вЂў вЂў вЂў вЂў be familiar with complexity of today's bureaucratic decisions know the meaning of quantitative methods know the want of using quantitative approach to managerial decisions appreciate the position of statistical methods in data analysis know the various models frequently used in operations research as well as the basis of all their classification have a brief idea of various record methods know the dimensions of the areas of applications of' quantitative approach in business and managing.
Quantitative Making decisions вЂ“ A summary
Structure 1 ) 1 1 ) 2 1 ) 3 1 . 4 1 ) 5 1 . 6 1 ) 7 1 ) 8 1 ) 9 Launch Meaning of Quantitative Techniques Statistics and Operations Study Classification of Statistical Strategies Models in Operations Study Various Record Methods Benefits of Quantitative approach to Management Quantitative Techniques in Business and Administration Use of Computers
1 . 10 Summary 1 . 11 Key phrases 1 . 12 Self-assessment Exercises 1 . 13 Further Psychic readings
1 . you
You could be aware of the simple fact that before the industrial revolution individual organization was small , production was carried out on the very small scale mainly to cater to the local needs. The management of such businesses was different from the present management of large scale organization. The information necessary by the decision-maker (usually the owner) to generate effective decisions was much less extensive than at present. Thus he utilized to make decisions based upon his past experience and pure intuition only. Some of the reasons for this were: i) The promoting of the merchandise was not problems because customers were, to get the large component, personally recognized to the owner of the business enterprise. There was not much competition in the industry. ii) Test out marketing from the product has not been needed as the owner accustomed to know the choice and requirement of the customers simply by personal interaction. iii) The manager (also the owner) also used to work with his workers on the shopfloor. He knew every one of them personally because the number was small. This reduced the advantages of keeping personal data. iv) The improvement of the function was being produced daily with the work hub itself. As a result production records were not needed. v) Virtually any facts the particular owner needed could possibly be learnt immediate from statement and most
Basic Mathematics for Management
of what he essential was proven to him. Now, in the face of raising complexity in business and sector, intuition by itself has no put in place decision-making mainly because basing a choice on instinct becomes highly questionable when the decision entails the choice amongst several courses of action every single of which can achieve several managing objectives together. Hence we have a need for training people who may manage a process both efficiently and artistically. Quantitative approaches have made beneficial contribution to arriving at a highly effective decision in various functional parts of management-marketing, financing, production and personnel. Today, these techniques are also trusted in regional planning, travel, public health, connection, military, cultivation, etc . Quantitative techniques being used extensively because an aid in operation decisionmaking due to following reasons: i) Difficulty of present managerial activities which require constant research of existing situation, setting objectives, seeking alternatives, putting into action, coordinating, managing and evaluating the decision produced. ii) Accessibility to different types of tools for quantitative analysis of complex managerial problems. iii) Availability of high-speed computers to apply quantitative methods (or models) to real world problems in all of the types of organisations including business, industry, military, wellness, and so on. Pcs have played out an important part in arriving at the optimal solution of sophisticated managerial concerns both in terms of time and cost. Regardless of...