Quantitative Methods

Quantitative Methods
BITS Pilani
Pilani Campus

Course handout

BITS Pilani
Pilani Campus

Session-1

Instructor Details
Dr. Remica Aggarwal 1214 C ; FD-1 Department of Management Email: [e-mail]

Mobile: [phone]

BITS Pilani, Pilani Campus

Course Details

• • • • • • •

Management Science Use of QM/QA Modelling Techniques Data Analysis Techniques MS Excel QM for Windows Test
BITS Pilani, Pilani Campus

Quantitative Methods
• • • • • • • Operations Research Statistics Management Science Data IT & QM Business intelligence Theory Vs. Use?
BITS Pilani, Pilani Campus

Operational Research

...is concerned with scientifically deciding how best to design and operate man-machine systems under conditions requiring allocation of scarce resources

BITS Pilani, Pilani Campus

Definition of OR

–T.L. Saaty:
A collection of tools and techniques which provide bad answers to problems ………………………….…………….. which otherwise have ………………… worse answers
BITS Pilani, Pilani Campus

Evolution of OR
• History –U.S. Navy –Naval Research Forum –P.M.S. Blackett –Naval Research Logistics • Need – civilian applications • OR – Blend of art and science
BITS Pilani, Pilani Campus

Application Areas
• • • • • • • • Allocation (product-mix) Scheduling & Sequencing Routing Replacement Inventory Queueing Search Competitive
BITS Pilani, Pilani Campus

Application …(contd.)
• Allocation: ….involves allocation of resources to activities in such a way that some measure of performance is optimized Ex: Diet mix problems Assignment problems
BITS Pilani, Pilani Campus

Application …(contd.)
• Sequencing: … deciding the precedence relations among various activities that are to be performed so as to optimize time/cost/… factor(s)
– Building of Health Care Centres

• Routing: …finding the optimal route from an origin to a destination among possible routes – Ex. Managing Network of Health Care Centres
BITS Pilani, Pilani Campus