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Thursday, October 21, 2010

Introduction to Quantitative Analysis

After completing this chapter, you will be able to:

  • Describe the quantitative analysis approach
  • Understand the application of quantitative analysis in a real situation
  • Describe the use of modeling in quantitative analysis
  • Use computers and spreadsheet models to perform quantitative analysis
  • Discuss possible problems in using quantitative analysis
  • Perform a break-even analysis
  • Mathematical tools have been used for thousands of years
    Quantitative analysis can be applied to a wide variety of problems
    It’s not enough to just know the mathematics of a technique
    One must understand the specific applicability of the technique, its limitations, and its assumptions
Examples of Quantitative Analyses
  • Dzikri Cell company saved over $150 million using forecasting and scheduling quantitative analysis models
  • XYZ television increased revenues by over $200 million by using quantitative analysis to develop better sales plans
  • Ali Baba Airlines saved over $40 million using quantitative analysis models to quickly recover from weather delays and other disruptions
What is Quantitative Analysis?
Quantitative analysis is a scientific approach to managerial decision making whereby raw data are processed and manipulated resulting in meaningful information
  • Quantitative factors might be different investment alternatives, interest rates, inventory levels, demand, or labor cost
  • Qualitative factors such as the weather, state and federal legislation, and technology breakthroughs should also be considered
Information may be difficult to quantify but can affect the decision-making process
Defining the Problem
Need to develop a clear and concise statement that gives direction and meaning to the following steps
This may be the most important and difficult step
  • It is essential to go beyond symptoms and identify true causes
  • May be necessary to concentrate on only a few of the problems – selecting the right problems is very important
  • Specific and measurable objectives may have to be developed
Developing a Model
Quantitative analysis models are realistic, solvable, and understandable mathematical representations of a situation
  • Models generally contain variables (controllable and uncontrollable) and parameters
  • Controllable variables are generally the decision variables and are generally unknown
  • Parameters are known quantities that are a part of the problem
Acquiring Input Data

Input data must be accurate – GIGO rule
Data may come from a variety of sources such as company reports, company documents, interviews, on-site direct measurement, or statistical sampling


jaenal arifin said...

"bab ini membantu saya untuk bisa mengetahui mengenai pengertian dari anaisis kuantitatif dan pembahasannya.."
"dengan bab ini dapat membantu memudahkan pembaca dalam hal penjelasan mengenai analisis kuantitatif"

wardi susanto said...

Melalui pendekatan analisis kuantitatif, maka kita dapat mengetahui bagaimana cara pengambilan keputusan yang baik dan benar, dan waktu pengambilan keputusan cepat atau lambat. karena pengambilan keputusan sangat mengandung unsur resiko bagi seorang pemimpin dalam menerapkan dan menjalankan manajemen.

Toto adiwijaya said...

pak...faktor2 kwantatif boleh jadi alternatif 2 investasi yng berbeda,tingkat bunga, persediaan ,permintaan atau biaya tenaga kerja ..??? apakah hal tsb diatas berkaitan dgn kita mengambil suatu keputusan mengenai analis kwantitif,,...?

yusuf said...

with his example is my case to analyze what is the meaning of quantitative analysis and its uses.
quantitative analysis is used as pemecahaapa akurn company data problem faced by the company or business undertaken. analyzing the means to collect accurate data.