Quantitive Analysis

Chapter 1 Introduction to Quantitative Analysis
Prepared by Lee Revere and John Large
To accompany Quantitative Analysis for Management, 9e by Render/Stair/Hanna

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© 2006 by Prentice Hall, Inc. Upper Saddle River, NJ 07458

Learning Objectives
Students will be able to: 1. Describe the quantitative analysis (QA) approach. 2. Understand the application of QA in a real situation. 3. Describe the use of modeling in QA. 4. Use computers and spreadsheet models to perform QA. 5. Discuss possible problems in using quantitative analysis. 6. Perform a break-even analysis.
To accompany Quantitative Analysis for Management, 9e by Render/Stair/Hanna

1-2

© 2006 by Prentice Hall, Inc. Upper Saddle River, NJ 07458

Chapter Outline
1.1 Introduction 1.2 What Is Quantitative Analysis (QA)? 1.3 The QA Approach 1.4 How to Develop a QA Model 1.5 The Role of Computers and Spreadsheet Models in the QA Approach 1.6 Possible Problems in the QA Approach 1.7 Implementation - Not Just the Final Step
To accompany Quantitative Analysis for Management, 9e by Render/Stair/Hanna

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© 2006 by Prentice Hall, Inc. Upper Saddle River, NJ 07458

Introduction
Mathematical tools have been used for thousands of years. QA can be applied to a wide variety of problems. One must understand the specific applicability of the technique, its limitations, and its assumptions.

To accompany Quantitative Analysis for Management, 9e by Render/Stair/Hanna

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© 2006 by Prentice Hall, Inc. Upper Saddle River, NJ 07458

Taco Bell saved over $150 million using forecasting and scheduling QA models. NBC increased revenues by over $200 million by using QA to develop better sales plans. Continental Airlines saved over $40 million using QA models to quickly recover from weather and other disruptions.

Examples of Quantitative Analyses

To accompany Quantitative Analysis for Management, 9e by Render/Stair/Hanna

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© 2006 by Prentice Hall, Inc. Upper Saddle River, NJ 07458... [continues]

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