QMB12ch01
SLIDES
.
BY
.
.
.
. St. Edward’s Univ.
.
.
.
.
.
.
.
John Loucks
© 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied Slide 1 or duplicated, or posted to a publicly accessible website, in whole or in part.
Chapter 1
Introduction
Body of Knowledge
Problem Solving and Decision Making
Quantitative Analysis and Decision Making
Quantitative Analysis
Models of Cost, Revenue, and Profit
Quantitative Methods in Practice
© 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied Slide 2 or duplicated, or posted to a publicly accessible website, in whole or in part.
Body of Knowledge
The body of knowledge involving quantitative approaches to decision making is referred to as
• Management Science
• Operations Research
• Decision Science
It had its early roots in World War II and is flourishing in business and industry due, in part, to: • numerous methodological developments (e.g. simplex method for solving linear programming problems)
• a virtual explosion in computing power
© 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied Slide 3 or duplicated, or posted to a publicly accessible website, in whole or in part.
Problem Solving and Decision Making
7 Steps of Problem Solving
(First 5 steps are the process of decision making) 1. Identify and define the problem.
2. Determine the set of alternative solutions.
3. Determine the criteria for evaluating alternatives. 4. Evaluate the alternatives.
5. Choose an alternative (make a decision).
-------------------------------------------------------------------6. Implement the selected alternative.
7. Evaluate the results.
Cengage
Learning. All
Rights
Reserved. May not be scanned, copied Slide 4
© 2013 or duplicated, or posted to a publicly accessible website, in whole or in part.
Quantitative Analysis and Decision Making
Decision-Making
Process
Structuring the Problem
Define the Problem
Identify the Alternatives
Determine the Criteria
.
BY
.
.
.
. St. Edward’s Univ.
.
.
.
.
.
.
.
John Loucks
© 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied Slide 1 or duplicated, or posted to a publicly accessible website, in whole or in part.
Chapter 1
Introduction
Body of Knowledge
Problem Solving and Decision Making
Quantitative Analysis and Decision Making
Quantitative Analysis
Models of Cost, Revenue, and Profit
Quantitative Methods in Practice
© 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied Slide 2 or duplicated, or posted to a publicly accessible website, in whole or in part.
Body of Knowledge
The body of knowledge involving quantitative approaches to decision making is referred to as
• Management Science
• Operations Research
• Decision Science
It had its early roots in World War II and is flourishing in business and industry due, in part, to: • numerous methodological developments (e.g. simplex method for solving linear programming problems)
• a virtual explosion in computing power
© 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied Slide 3 or duplicated, or posted to a publicly accessible website, in whole or in part.
Problem Solving and Decision Making
7 Steps of Problem Solving
(First 5 steps are the process of decision making) 1. Identify and define the problem.
2. Determine the set of alternative solutions.
3. Determine the criteria for evaluating alternatives. 4. Evaluate the alternatives.
5. Choose an alternative (make a decision).
-------------------------------------------------------------------6. Implement the selected alternative.
7. Evaluate the results.
Cengage
Learning. All
Rights
Reserved. May not be scanned, copied Slide 4
© 2013 or duplicated, or posted to a publicly accessible website, in whole or in part.
Quantitative Analysis and Decision Making
Decision-Making
Process
Structuring the Problem
Define the Problem
Identify the Alternatives
Determine the Criteria