Quantitative Management

1417 WordsNov 27, 20086 Pages
Quantitative Techniques/Operations Research Successful managers use quantitative techniques in decision making when: 1. The problem is complex. 2. The problem involves many variables. 3. There are data which describe the decision environment. 4. There are data which describe the value or utility of the different possible alternatives. 5. The goals of the decision maker or the organization can be described in quantitative terms. 6. Workable models are available for these situations. Six steps towards making better decisions: Process Activities Process Steps Process Output 1. Site visits Observe the problem Sufficient information Conferences environment and support to proceed…show more content…
MS/OR forces managers to be quite explicit about their objectives, their assumptions and their way of seeing constraints. 2. MS/OR quickly points out gaps in the data required to support workable solutions to problems 3. MS/OR permits us to examine a situation, change the conditions under which decisions are made, and examine the effects of those changes-all without serious damage or excessive cost. 4. MS/OR forces managers to be very precise about how the variables in a problem interact with each other. 5. MS/OR makes managers consider very carefully just what variables influence decisions. 6. MS/OR lets us find a solution to a complex variable much more quickly than if we had to compute it by hand and often is the only way we can solve
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