SOLUTION MANUAL FOR hp hp
QUANTITATIVE ANALYSIS FOR MANAGEMENT, 14TH EDITION hp hp hp hp hp
RENDER
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CHAPTER 1-15 hp
CHAPTER hp 1
Introduction to Quantitative Analysis hp hp hp
TEACHING SUGGESTIONS hp
Teaching h p Suggestion h p 1.1: h p Importance h p of h p Qualitative h p Factors.
Section 1.1 gives students an overview of quantitative analysis. In this section, a
hp hp hp hp hp hp hp hp hp hp hp hp hp number of hp
qualitative factors, including federal legislation and new technology, are
hp hp hp hp hp hp hp hp h p hp discussed.
Students can be asked to discuss other qualitative factors that could have an
hp h p hp hp hp hp hp hp hp hp hp hp hp hp impact on hp
quantitative analysis.
hp Waiting lines and project planning
hp can h p h p h p h p h p h p h p be used h p
h as examples.
p h p
Teaching h p Suggestion h p 1.2: h p Discussing h p Other h p Quantitative h p Analysis h p Problems.
Section 1.2 h p h p covers an application of the h p h p h p h p h p quantitative analysis h p
approach.
h p h p Students can be asked to describe h p hp h p h p h p h p other problems or h p h p
areas that
h p h p h p could benefit from quantitative analysis.
h p h p h p hp
Teaching h p Suggestion h p 1.3: h p Discussing h p Conflicting h p Viewpoints.
Possible problems in the QA approach are presented in this chapter. A
h p h p h p h p h p h p h p h p h p h p h p
discussion of conflicting
h p viewpoints within the organization
h p can help hp h p h p h p h p h p h p
h students
p understand this problem. For example,
h how
p many people h p hp h p h p h p h p h p
h shouldp staff a registration desk hat a university? Students will want more
p h p h p h p h p h p hp hp hp hp hp
staff to reduce waiting time, while university administrators will want less staff
hp hp hp hp hp hp hp h p h p h p h p h p
to save money. A discussion of these types of conflicting viewpoints will help
h p h p h p h p h p h p h p h p h p hp hp hp hp
students understand some of the problems of using quantitative analysis.
hp hp h p h p h p h p h p h p hp h p
Teaching h p Suggestion h p 1.4: h p Difficulty h p of h p Getting h p Input h p Data.
A major problem
h p in quantitative analysis is getting
h p proper input data. h p h p h p h p h p h p h p h p
h p Students can be asked to explain how they would get the information they
h p h p hp h p h p h p h p h p h p h p h p h p
h p need to determine inventory ordering or carrying costs. Role-playing with students
h p h p h p hp hp hp hp hp hp hp
hp assuming the parts of the analyst who needs hp inventory costs and the
hp hp hp hp hp hp h p h p h p h p
h instructor playing the part of a veteran inventory manager
p h p can be h p h p h p h p h p h p hp h p h p
h p fun and interesting.
h Students
p quickly learn that getting
h good
p h p h p h p h p h p h p
h data can be the most difficult part of using quantitative analysis.
p hp h p h p h p h p hp hp hp hp hp
Teaching h p Suggestion h p 1.5: h p Dealing h p with h p Resistance h p to h p Change.
,Resistance to change is discussed in this chapter. Students can be asked to explain how
hp hp hp hp hp hp hp hp hp hp hp hp hp hp
they would introduce a new system or change within the organization. People resisting
hp hp hp hp hp hp hp hp hp hp hp hp hp
new approaches can be a major stumbling block to the successful implementation of
hp hp hp hp hp hp hp hp hp hp hp hp hp
quantitative analysis. Students can be asked why some people may be afraid
hp hp h p h p h p h p h p h p h p h p h p h p
of a new inventory control or forecasting system.
h p h p h p h p h p hp hp hp
SOLUTIONS TO DISCUSSION QUESTIONS AND PROBLEMS hp hp hp hp hp
1-1. Quantitative analysis involves the use of mathematical equations or relationships in
hp hp hp hp hp hp hp hp hp hp hp
analyzing
hp a particular problem. In h mostp cases, the resultsh of
p h p h p h p h p h p h p h p
h quantitative
p analysis will be one or more numbers h that p can be h p hp h p h p h p h p h p h p h p
h used
p by managers and
h decision
p makers in making
h better decisions.
p h p h p h p h p hp h p h p
h Calculating
p rates of return, financial ratios from h a balance sheet
p h p h p h p h p h p h p h p hp
h and profit and loss statement, determining the number of units that
p h p h p h p h p h p h p h p h p h p h p
h must
p be produced in order to break even, and many similar techniques are
h p hp h p h p h p h p hp hp hp hp hp hp
examples of quantitative analysis. Qualitative analysis involves the investigation of
hp hp hp hp hp hp hp h p h p h p
factors in a decision-making problem
h p h p that cannot
h p be quantified or stated
h p hp h p h p h p h p h p h p
in mathematical terms. The state of the economy, current or pending legislation,
h p h p h p h p h p h p h p hp hp hp hp hp
perceptions about a potential client, and similar situations
hp hp reveal the use of hp hp hp hp hp hp h p h p h p h p
h qualitative analysis.
p In most decision-making problems, both
h p quantitative h p h p h p h p h p h p
h andp qualitative hanalysis
p are used. In this book, however, we emphasize h p h p h p h p h p h p h p h p h p
the techniques and approaches of quantitative analysis.
hp hp hp hp hp hp hp
1-2. Quantitative analysis is the scientific approach to managerial decision
h p h p h p h p h p h p h p h p h p
making. This type of analysis is a logical and rational approach to making decisions.
h p h p hp hp hp hp hp hp hp hp hp hp hp hp
Emotions, guesswork, and whim are not part of the quantitative analysis
hp hp hp h p h p h p h p h p h p h p h p
h approach.
p A number of organizations support the use of the scientific
h p h p h p h p h p hp hp hp hp hp
approach: the Institute for Operation Research and Management Science (INFORMS),
hp hp h p hp hp hp hp hp hp hp
Decision Sciences Institute, and Academy of Management.
hp hp hp hp hp hp hp
1-3. The three categories of business analytics are descriptive, predictive, and prescriptive.
hp hp hp hp hp hp hp hp hp hp hp
Descriptive analytics provides an indication of how things were performed in the past.
hp hp hp hp hp hp hp hp hp hp hp hp hp
Predictive analytics uses past data to forecast what will happen in the future. Prescriptive
hp hp hp hp hp hp hp hp hp hp hp hp hp hp
analytics uses optimization and other models to present better ways for a
hp h p h p h p h p h p h p h p h p h p h p h p
company to operate to reach goals and objectives.
h p h p hp hp hp hp hp hp
1-4. Quantitative analysis is a step-by-step process that allows decision makers to
hp hp hp hp hp hp hp hp hp hp hp
investigate problems using quantitative techniques. The steps of the quantitative analysis
hp hp hp hp hp hp hp hp hp hp hp
process include defining
hp the hpproblem, developing a model, acquiring
hp h p h p h p h p h p h p
h input
p data, developing a solution, testing the solution, analyzing the
h p h p h p hp h p h p h p h p h p
results, and implementing the results. In every case, the analysis begins with
h p h p h p h p h p h p h p hp hp hp h p h p
defining the problem. The problem could be too many stockouts,
h p h p h p too many h p h p h p h p h p h p hp h p h p
h badp debts, or determining
h p the
h p products to produce that will h p h p h p h p h p h p h p h p
result
hp in the maximum profit
h p for the organization.
h p After the problems h p hp h p hp hp h p hp hp
h phave been defined, the hpnext step is to develop oneh p or more hp h p h p h p h p h p h p h p h p
h models. These models could be inventory control models, models that
p h p h p h p h p h p hp h p h p h p
h describe the debt
p situation in the organization,
h p and so on. Once the h p h p h p h p h p h p h p h p hp h p
models have been developed, the next step is to acquire input data. In the
h p h p h p h p h p h p h p h p h p h p h p h p h p h p
inventory problem, for example, such factors as the annual demand, the ordering
hp hp hp hp hp hp hp hp hp h p h p h p
h cost,
p and the carrying cost would be input data that are used by the
h p hp h p h p h p h p h p h p h p h p h p hp h p
model developed in the preceding
h p h p step. In determining the products h p h p hp h p h p h p h p h p
h to p produce in order to maximize profits, the input data could be such
h p h p h p h p h p h p hp h p h p h p h p h p
,h p things as the profitability for all the different products, the amount
h p h p h p h p h p h p h p h p h p hp h p of
h ptimeh p that is
h p available
h p at the various
h production departments
p h p h p h p h p h p h p that
h pproduce the products,
h p h and pthe amount of htime
p it takes h p h p h p h p h p h p h p for
h p eachh product
p to h p
, be h produced
p h p inh each
p h production
p department.
h p h The
p next hstep is
p h p h p
h p developing h p the solution. This requires manipulation of the
hp h p hp h p h model p
h p in orderh p to determine the best h p
QUANTITATIVE ANALYSIS FOR MANAGEMENT, 14TH EDITION hp hp hp hp hp
RENDER
hp
CHAPTER 1-15 hp
CHAPTER hp 1
Introduction to Quantitative Analysis hp hp hp
TEACHING SUGGESTIONS hp
Teaching h p Suggestion h p 1.1: h p Importance h p of h p Qualitative h p Factors.
Section 1.1 gives students an overview of quantitative analysis. In this section, a
hp hp hp hp hp hp hp hp hp hp hp hp hp number of hp
qualitative factors, including federal legislation and new technology, are
hp hp hp hp hp hp hp hp h p hp discussed.
Students can be asked to discuss other qualitative factors that could have an
hp h p hp hp hp hp hp hp hp hp hp hp hp hp impact on hp
quantitative analysis.
hp Waiting lines and project planning
hp can h p h p h p h p h p h p h p be used h p
h as examples.
p h p
Teaching h p Suggestion h p 1.2: h p Discussing h p Other h p Quantitative h p Analysis h p Problems.
Section 1.2 h p h p covers an application of the h p h p h p h p h p quantitative analysis h p
approach.
h p h p Students can be asked to describe h p hp h p h p h p h p other problems or h p h p
areas that
h p h p h p could benefit from quantitative analysis.
h p h p h p hp
Teaching h p Suggestion h p 1.3: h p Discussing h p Conflicting h p Viewpoints.
Possible problems in the QA approach are presented in this chapter. A
h p h p h p h p h p h p h p h p h p h p h p
discussion of conflicting
h p viewpoints within the organization
h p can help hp h p h p h p h p h p h p
h students
p understand this problem. For example,
h how
p many people h p hp h p h p h p h p h p
h shouldp staff a registration desk hat a university? Students will want more
p h p h p h p h p h p hp hp hp hp hp
staff to reduce waiting time, while university administrators will want less staff
hp hp hp hp hp hp hp h p h p h p h p h p
to save money. A discussion of these types of conflicting viewpoints will help
h p h p h p h p h p h p h p h p h p hp hp hp hp
students understand some of the problems of using quantitative analysis.
hp hp h p h p h p h p h p h p hp h p
Teaching h p Suggestion h p 1.4: h p Difficulty h p of h p Getting h p Input h p Data.
A major problem
h p in quantitative analysis is getting
h p proper input data. h p h p h p h p h p h p h p h p
h p Students can be asked to explain how they would get the information they
h p h p hp h p h p h p h p h p h p h p h p h p
h p need to determine inventory ordering or carrying costs. Role-playing with students
h p h p h p hp hp hp hp hp hp hp
hp assuming the parts of the analyst who needs hp inventory costs and the
hp hp hp hp hp hp h p h p h p h p
h instructor playing the part of a veteran inventory manager
p h p can be h p h p h p h p h p h p hp h p h p
h p fun and interesting.
h Students
p quickly learn that getting
h good
p h p h p h p h p h p h p
h data can be the most difficult part of using quantitative analysis.
p hp h p h p h p h p hp hp hp hp hp
Teaching h p Suggestion h p 1.5: h p Dealing h p with h p Resistance h p to h p Change.
,Resistance to change is discussed in this chapter. Students can be asked to explain how
hp hp hp hp hp hp hp hp hp hp hp hp hp hp
they would introduce a new system or change within the organization. People resisting
hp hp hp hp hp hp hp hp hp hp hp hp hp
new approaches can be a major stumbling block to the successful implementation of
hp hp hp hp hp hp hp hp hp hp hp hp hp
quantitative analysis. Students can be asked why some people may be afraid
hp hp h p h p h p h p h p h p h p h p h p h p
of a new inventory control or forecasting system.
h p h p h p h p h p hp hp hp
SOLUTIONS TO DISCUSSION QUESTIONS AND PROBLEMS hp hp hp hp hp
1-1. Quantitative analysis involves the use of mathematical equations or relationships in
hp hp hp hp hp hp hp hp hp hp hp
analyzing
hp a particular problem. In h mostp cases, the resultsh of
p h p h p h p h p h p h p h p
h quantitative
p analysis will be one or more numbers h that p can be h p hp h p h p h p h p h p h p h p
h used
p by managers and
h decision
p makers in making
h better decisions.
p h p h p h p h p hp h p h p
h Calculating
p rates of return, financial ratios from h a balance sheet
p h p h p h p h p h p h p h p hp
h and profit and loss statement, determining the number of units that
p h p h p h p h p h p h p h p h p h p h p
h must
p be produced in order to break even, and many similar techniques are
h p hp h p h p h p h p hp hp hp hp hp hp
examples of quantitative analysis. Qualitative analysis involves the investigation of
hp hp hp hp hp hp hp h p h p h p
factors in a decision-making problem
h p h p that cannot
h p be quantified or stated
h p hp h p h p h p h p h p h p
in mathematical terms. The state of the economy, current or pending legislation,
h p h p h p h p h p h p h p hp hp hp hp hp
perceptions about a potential client, and similar situations
hp hp reveal the use of hp hp hp hp hp hp h p h p h p h p
h qualitative analysis.
p In most decision-making problems, both
h p quantitative h p h p h p h p h p h p
h andp qualitative hanalysis
p are used. In this book, however, we emphasize h p h p h p h p h p h p h p h p h p
the techniques and approaches of quantitative analysis.
hp hp hp hp hp hp hp
1-2. Quantitative analysis is the scientific approach to managerial decision
h p h p h p h p h p h p h p h p h p
making. This type of analysis is a logical and rational approach to making decisions.
h p h p hp hp hp hp hp hp hp hp hp hp hp hp
Emotions, guesswork, and whim are not part of the quantitative analysis
hp hp hp h p h p h p h p h p h p h p h p
h approach.
p A number of organizations support the use of the scientific
h p h p h p h p h p hp hp hp hp hp
approach: the Institute for Operation Research and Management Science (INFORMS),
hp hp h p hp hp hp hp hp hp hp
Decision Sciences Institute, and Academy of Management.
hp hp hp hp hp hp hp
1-3. The three categories of business analytics are descriptive, predictive, and prescriptive.
hp hp hp hp hp hp hp hp hp hp hp
Descriptive analytics provides an indication of how things were performed in the past.
hp hp hp hp hp hp hp hp hp hp hp hp hp
Predictive analytics uses past data to forecast what will happen in the future. Prescriptive
hp hp hp hp hp hp hp hp hp hp hp hp hp hp
analytics uses optimization and other models to present better ways for a
hp h p h p h p h p h p h p h p h p h p h p h p
company to operate to reach goals and objectives.
h p h p hp hp hp hp hp hp
1-4. Quantitative analysis is a step-by-step process that allows decision makers to
hp hp hp hp hp hp hp hp hp hp hp
investigate problems using quantitative techniques. The steps of the quantitative analysis
hp hp hp hp hp hp hp hp hp hp hp
process include defining
hp the hpproblem, developing a model, acquiring
hp h p h p h p h p h p h p
h input
p data, developing a solution, testing the solution, analyzing the
h p h p h p hp h p h p h p h p h p
results, and implementing the results. In every case, the analysis begins with
h p h p h p h p h p h p h p hp hp hp h p h p
defining the problem. The problem could be too many stockouts,
h p h p h p too many h p h p h p h p h p h p hp h p h p
h badp debts, or determining
h p the
h p products to produce that will h p h p h p h p h p h p h p h p
result
hp in the maximum profit
h p for the organization.
h p After the problems h p hp h p hp hp h p hp hp
h phave been defined, the hpnext step is to develop oneh p or more hp h p h p h p h p h p h p h p h p
h models. These models could be inventory control models, models that
p h p h p h p h p h p hp h p h p h p
h describe the debt
p situation in the organization,
h p and so on. Once the h p h p h p h p h p h p h p h p hp h p
models have been developed, the next step is to acquire input data. In the
h p h p h p h p h p h p h p h p h p h p h p h p h p h p
inventory problem, for example, such factors as the annual demand, the ordering
hp hp hp hp hp hp hp hp hp h p h p h p
h cost,
p and the carrying cost would be input data that are used by the
h p hp h p h p h p h p h p h p h p h p h p hp h p
model developed in the preceding
h p h p step. In determining the products h p h p hp h p h p h p h p h p
h to p produce in order to maximize profits, the input data could be such
h p h p h p h p h p h p hp h p h p h p h p h p
,h p things as the profitability for all the different products, the amount
h p h p h p h p h p h p h p h p h p hp h p of
h ptimeh p that is
h p available
h p at the various
h production departments
p h p h p h p h p h p h p that
h pproduce the products,
h p h and pthe amount of htime
p it takes h p h p h p h p h p h p h p for
h p eachh product
p to h p
, be h produced
p h p inh each
p h production
p department.
h p h The
p next hstep is
p h p h p
h p developing h p the solution. This requires manipulation of the
hp h p hp h p h model p
h p in orderh p to determine the best h p
