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Introduction to
Quantitative Analysis
To accompany
Quantitative Analysis for Management, Tenth Edition,
by Render, Stair, and Hanna 2008 Prentice-Hall, Inc.
Power Point slides created by Jeff Heyl 2009 Prentice-Hall, Inc.
Introduction
Developing a Model
Developing a Solution
+ b 1X
$ Sales
b
Y= 0
$ Advertising
Scale Schematic
models models
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Developing a Model
Garbage
In
Process
Garbage
Out
X=f/(s-v)
X=100/(1-.5)
X=200
Profits = sX f vX
0 = sX f vX, or 0 = (s v)X f
Solving for X, we have
f = (s v)X
f
X= sv
Fixed cost
BEP = (Selling price per unit) (Variable cost per unit)
Fixed cost
BEP = (Selling price per unit) (Variable cost per unit)
QM for Windows
An easy to use
decision support
system for use in
POM and QM
courses
This is the main
menu of
quantitative
models
Program 1.1
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Computers and Spreadsheet Models
Excel QMs Main Menu (2003)
Works automatically within Excel spreadsheets
Program 1.2A
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Computers and Spreadsheet Models
Excel QMs
Main Menu
(2007)
Program 1.2B
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Computers and Spreadsheet Models
Excel QM
for the
Break-
Even
Problem
Program 1.3A
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Computers and Spreadsheet Models
Excel QM
Solution
to the
Break-
Even
Problem
Program 1.3B
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Computers and Spreadsheet Models
Using
Goal Seek
in the
Break-
Even
Problem
Program 1.4
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Computers and Spreadsheet Models
Using
Goal Seek
in the
Break-
Even
Problem
Program 1.4
2009 Prentice-Hall, Inc. 1 41
Possible Problems in the
Quantitative Analysis Approach
Defining the problem
Problems are not easily identified
Conflicting viewpoints
Impact on other departments
Beginning assumptions
Solution outdated
Developing a model
Fitting the textbook models
Understanding the model