Introduction Pertemuan 1 Matakuliah: K0442-Metode Kuantitatif Tahun: 2009

Material Outline Problem Solving and Decision Making Quantitative Analysis and Decision making Quantitative Analysis Model of Cost Revenue, and Profit

Problem Solving and Decision Making The Problem Solving Process: 1.Identify and define the problem 2.Determine the set of alternative solutions 3.Determine the criterion 4.Evaluate the alternatives 5.Choose an alternative 6.Implement the selected alternative 7.Evaluate the results to determine weather a satisfactory solution has been obtained

Problems Single criterion decisions problems Multi criterion problems

Example: Data for the Job Evaluation Decision-Making Problem AlternativeStarting Salary Potential for Advancement Job Location 1.Rochester$48,000Average 2.Dallas$46,000ExcellentGood 3.Greensboro$46,000GoodExcellent 4. Pittsburgh$47,000AverageGood Problem Solving and Decision Making * You Decide to select alternative 3, Decision is the alternative selected

A Subclassification of The Decision making Process Structuring The Problem Analyzing The Problem Define The Problem Identify The Alternative Determine the criteria Choose An Alternative Evaluate The alternative

The Role of Qualitative and Quantitative Analysis Structuring the Problem Bina Nusantara University 8 Analyzing the Problem Define the Problem Determine the Criteria Identify the Alternative Qualitative Analysis Quantitative Analysis Summary and Evaluation Make the Decision

Problems Single criterion decisions problems Multi criterion problems

Quantitative Analysis Model Development - Iconic Model - Analog Model - Mathematical Model Maximize 10x objective function Subject to (s.t.) 5x≤ 40 x ≥ 0 Constraint Data Preparation Model Solution Report Generation A Note Regarding Implementation

Quantitative Analysis Flowchart of The Process of Transforming Model Inputs into Output Uncontrollable Inputs (Environmental Factors) Mathematical Model Output (Projected result) Controllable Inputs (Decision Variable)

Quantitative Analysis Flowchart for the Production Model (a) Uncontrollable Inputs Mathematical Model OutputControllable Inputs Max 10 (8) s.t. 5(8) ≤ 40 8 ≥ 0 $10 profit per unit 5 labor-hour per unit 40 labor-hours capacity Profit = 80 Time Used =40 Value for the Production Quantity (x =8)

Quantitative Analysis Decision Alternatives (Production Quantity) x Projected Profit Total Hour of Production Feasible Solution? (Hours Used ≤ 40) 000Yes 22010Yes 44020Yes 66030Yes 88040Yes No No Bina Nusantara University 13 Model Solution Trial and Error Solution for the Production Model of Flowchart (a)

Model of Cost, Revenue, and Profit Cost and Volume Model C (x)= ( x) Revenue and Volume Model R(x)= 5x Profit and Volume Model P(x)= R(x) – C (x) = 5x – ( x) = x

P(x)= R(x) – C (x) = 5x – ( x) = x P(500) = (500)= P(800) = (800) = 2400 P(x) = x = 0 3x = 3000, x=1000 Breakeven Analysis Model of Cost, Revenue, and Profit

Bina Nusantara University 16 Model of Cost, Revenue, and Profit Graph of the Breakeven analysis for Nowlin Plastics Revenue and Cost Production Volume Profit Breakeven Point = 1000 unit Total Cost C(x) = x Total Revenue R(x) = 5x Fix Cost Loss