1 Chapter 1 Introduction Exposure to quantitative methods will teach managers to ask the right questions. Quantitative Decision Making

2 Continuing Successes  Managing R&D  Determining Number of Bank Tellers  Locating Warehouses  Designing Ports  Fire Fighting  Investing  Distribution  Inventory  Scheduling Flights

3 Further Successes  Optimizing Agriculture  Waiting in Lines  Satellite Communications  Political Campaign Strategies

4 Management Science and Operations Research  Finding Optimal Solutions  Mathematical Optimization Procedures

5 Organization of Book I.Introduction II.Decision Making and Planning with Uncertainty III.Resource Allocation IV.Distribution, Routing, and Scheduling V.Inventory Management VI.Simulation and Waiting Lines

6 Models and Decision Making  The Mathematical Model: Parameters and Variables Minimize A = Annual number of items demanded k = Cost of placing an order h = Annual holding cost per dollar value c = Unit cost of procuring an item

7 Models and Decision Making  Constraints and Feasible Solutions Q < 300  Optimal Solutions  Algorithms and Model Types

8 Computer Solutions  Excel Spreadsheets

9 Computer Solutions  QuickQuant

10 The Importance of Studying Quantitative Methods  Increases decision-making confidence.  Provides problem-solving skills.  Raises ability to cope with decisions.  Learn spreadsheet skills.