# Quantitative Methods in Management

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Quantitative Methods in Management

Q M M

Session One

Asato ma sat gamaya, tamaso ma jyotir gamaya,

mrityo ma amritam gamaya

‘Lead me from the superficial to the worthy,

from darkness to light and

from stagnation to zestful living’

[pic]M C Escher http://www.theorsociety.com/Science_of_Better/htdocs/prospect/index.asp What is Operational Research? The discipline of applying appropriate analytical methods to help make better decisions.

By using techniques such as problem structuring methods (sometimes known as 'Soft O.R.') and mathematical modelling to analyse complex situations, operational research gives executives the power to make more effective decisions and build more productive systems based on: • More complete data • Consideration of all available options • Careful predictions of outcomes and estimates of risk • The latest decision tools and techniques

Linear Programming

Operations management often presents complex problems that can be modelled by linear functions.
The mathematical technique of linear programming is instrumental in solving a wide range of operations management problems.

Linear programming is used to solve problems in many aspects of business administration including: • product mix planning • distribution networks • truck routing • staff scheduling • financial portfolios • corporate restructuring

Decision Trees

In many problems chance (or probability) plays an important role. Decision analysis is the general name that is given to techniques for analysing problems containing risk/uncertainty/probabilities. Decision trees are one specific decision analysis technique.

Sensitivity analysis

Queuing Theory (Waiting Line

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