Module I (Introduction to QT)
Quantitative techniques
Quantitative techniques may be defined as those technique which
provide the decision makers a systematic and powerful means of
analysis, based on quantitative data.
Classification/ Different types / Kinds of quantitative techniques
Mathematical techniques
Statistical techniques
Programming techniques
Mathematical techniques
A technique in which quantitative data are used along with
mathematical principles are known as mathematical techniques. It
involves
Permutation and Combination
Permutation means arrangement of object in a definite order.
Combination means selection of objects without considering order.
Set theory
It is a mathematical theory of well determined collection of objects.
Matrix
Matrix is a rectangular array of numbers or symbols enclosed by a pair
of brackets.
Determinants
It is a scalar value that is a function of the entries of a square matrix.
Differentiation
It is a mathematical process of finding changes in dependent variable
on the basis of changes in independent variable.
Integration
It is a process of finding changes in independent variable on the basis of
changes in dependent variable.
, Statistical Techniques
Statistical techniques are those techniques which are used in
conducting statistical enquiry.
Collection of data
By using different methods for collecting primary and secondary data.
Correlation analysis
It is used to study the degree of relationship among two or more
variables
Regression analysis
It is used to estimate the value of one variable for a given value of
another.
Index number
These measure the fluctuations in various phenomena over a period of
time.
Time series analysis
Analysis of time series help us to know the effect of factors which are
responsible for changes.
Probability theory
It provides numerical value of the likelihood of the occurrence of
events.
Programming Techniques
These are operation research techniques used by decision makers in
modern time.
Linear programming
This is used in finding a solution for optimizing a given objective under
certain constraints.
Queuing theory
This deals with mathematical study of queues.
Game theory
It is used to determine the optimum strategy in a competitive situation.
Decision theory
It involves making sound decision under risk and uncertainty.
, Inventory theory
It helps for optimizing the inventory levels.
Network programming
It is a technique of planning, scheduling, controlling and coordinating
large and complex projects comprising of number of activities and
events.
Simulation
It is a technique of testing a model which resembles a real life situation.
Functions of quantitative techniques
To facilitates decision making.
To helps for scientific research
To help in minimizing cost
To help in choosing an optimal strategy.
To enable proper use of resources.
To helps in optimum resource allocation.
To enlight reactions of integrated business system.
Uses/ Application/ Advantages of quantitative techniques in business
and industry
Helpful in inventory management.
Facilitate decision making.
Useful in production management.
Proper allocation of resources.
Reduction in cost and minimizing waiting time.
PERT and CPM helps in determining project time.
It offer solution for various business problems.
Replacement theory helps the management for economic
replacement.
Helps in project management by using PERT and CPM.
Scope of quantitative techniques (QT and other disciplines)
Financing
Purchasing
Manufacturing
Quantitative techniques
Quantitative techniques may be defined as those technique which
provide the decision makers a systematic and powerful means of
analysis, based on quantitative data.
Classification/ Different types / Kinds of quantitative techniques
Mathematical techniques
Statistical techniques
Programming techniques
Mathematical techniques
A technique in which quantitative data are used along with
mathematical principles are known as mathematical techniques. It
involves
Permutation and Combination
Permutation means arrangement of object in a definite order.
Combination means selection of objects without considering order.
Set theory
It is a mathematical theory of well determined collection of objects.
Matrix
Matrix is a rectangular array of numbers or symbols enclosed by a pair
of brackets.
Determinants
It is a scalar value that is a function of the entries of a square matrix.
Differentiation
It is a mathematical process of finding changes in dependent variable
on the basis of changes in independent variable.
Integration
It is a process of finding changes in independent variable on the basis of
changes in dependent variable.
, Statistical Techniques
Statistical techniques are those techniques which are used in
conducting statistical enquiry.
Collection of data
By using different methods for collecting primary and secondary data.
Correlation analysis
It is used to study the degree of relationship among two or more
variables
Regression analysis
It is used to estimate the value of one variable for a given value of
another.
Index number
These measure the fluctuations in various phenomena over a period of
time.
Time series analysis
Analysis of time series help us to know the effect of factors which are
responsible for changes.
Probability theory
It provides numerical value of the likelihood of the occurrence of
events.
Programming Techniques
These are operation research techniques used by decision makers in
modern time.
Linear programming
This is used in finding a solution for optimizing a given objective under
certain constraints.
Queuing theory
This deals with mathematical study of queues.
Game theory
It is used to determine the optimum strategy in a competitive situation.
Decision theory
It involves making sound decision under risk and uncertainty.
, Inventory theory
It helps for optimizing the inventory levels.
Network programming
It is a technique of planning, scheduling, controlling and coordinating
large and complex projects comprising of number of activities and
events.
Simulation
It is a technique of testing a model which resembles a real life situation.
Functions of quantitative techniques
To facilitates decision making.
To helps for scientific research
To help in minimizing cost
To help in choosing an optimal strategy.
To enable proper use of resources.
To helps in optimum resource allocation.
To enlight reactions of integrated business system.
Uses/ Application/ Advantages of quantitative techniques in business
and industry
Helpful in inventory management.
Facilitate decision making.
Useful in production management.
Proper allocation of resources.
Reduction in cost and minimizing waiting time.
PERT and CPM helps in determining project time.
It offer solution for various business problems.
Replacement theory helps the management for economic
replacement.
Helps in project management by using PERT and CPM.
Scope of quantitative techniques (QT and other disciplines)
Financing
Purchasing
Manufacturing
