SOLUTION MANUAL
QUANTITATIVE ANALYSIS FOR
MANAGEMENT,
14TH EDITION By RENDER
All Chapters 1 to15
11-1
Copyright © 2024 Pearson Education, Inc.
n n n n n
,TABLE OF CONTENT
n n
1. Introduction to Quantitative Analysisn n n
2. Probability Concepts and Applications
n n n
3. Decision Analysisn
4. Regression Models n
5. Forecasting
6. Inventory Control Models
n n
7. Linear Programming Models: Graphical and Comput
n n n n n
er Methods
n
8. Linear Programming Applications
n n
9. Transportation, Assignment, and Network Models n n n n
10. Integer Programming, Goal Programming, and N
n n n n n
onlinear Programming
n
11. Project Management n
12. Waiting Lines and Queuing Theory Models
n n n n n
13. Simulation Modeling n
14. Markov Analysis n
15. Statistical Quality Control n n
11-1
Copyright © 2024 Pearson Education, Inc.
n n n n n
,CHAPTER 1 n
Introduction to Quantitative Analysis n n n
TEACHING SUGGESTIONS n
Teaching Suggestion 1.1: Importance of Qualitative Factors.
n n n n n n
Section 1.1 gives students an overview of quantitative analysis. In this section, a number
n n n n n n n n n n n n n
nof qualitative factors, including federal legislation and new technology, are discussed. Stud
n n n n n n n n n n n
ents can be asked to discuss other qualitative factors that could have an impact on quantit
n n n n n n n n n n n n n n n
ative analysis. Waiting lines and project planning can be used as examples.
n n n n n n n n n n n
Teaching Suggestion 1.2: Discussing Other Quantitative Analysis Problems.
n n n n n n n
Section 1.2 covers an application of the quantitative analysis approach. Students can be aske
n n n n n n n n n n n n n
d to describe other problems or areas that could benefit from quantitative analysis.
n n n n n n n n n n n n
Teaching Suggestion 1.3: Discussing Conflicting Viewpoints.
n n n n n
Possible problems in the QA approach are presented in this chapter. A discussion of conflict
n n n n n n n n n n n n n n
ing viewpoints within the organization can help students understand this problem. For exa
n n n n n n n n n n n n
mple, how many people should staff a registration desk at a university? Students will wa
n n n n n n n n n n n n n n
nt more staff to reduce waiting time, while university administrators will want less staf
n n n n n n n n n n n n n
f to save money. A discussion of these types of conflicting viewpoints will help students
n n n n n n n n n n n n n n
nunderstand some of the problems of using quantitative analysis.
n n n n n n n n
Teaching Suggestion 1.4: Difficulty of Getting Input Data.
n n n n n n n
A major problem in quantitative analysis is getting proper input data. Students can be aske
n n n n n n n n n n n n n n
d to explain how they would get the information they need to determine inventory or
n n n n n n n n n n n n n n
dering or carrying costs. Role- n n n n
playing with students assuming the parts of the analyst who needs inventory costs and the i
n n n n n n n n n n n n n n n
nstructor playing the part of a veteran inventory manager can be fun and interesting. Stude
n n n n n n n n n n n n n n
nts quickly learn that getting good data can be the most difficult part of using quantitative
n n n n n n n n n n n n n n n n
analysis.
Teaching Suggestion 1.5: Dealing with Resistance to Change.
n n n n n n n
11-1
Copyright © 2024 Pearson Education, Inc. n n n n n
, Resistance to change is discussed in this chapter. Students can be asked to explain how th
n n n n n n n n n n n n n n n
ey would introduce a new system or change within the organization. People resisting ne
n n n n n n n n n n n n n
w approaches can be a major stumbling block to the successful implementation of quan
n n n n n n n n n n n n n
titative analysis. Students can be asked why some people may be afraid of a new invento
n n n n n n n n n n n n n n n
ry control or forecasting system.
n n n n
SOLUTIONS TO DISCUSSION QUESTIONS AND PROBLEMS n n n n n
1-
1. Quantitative analysis involves the use of mathematical equations or relationships in an
n n n n n n n n n n n n
alyzing a particular problem. In most cases, the results of quantitative analysis will be one o
n n n n n n n n n n n n n n n
r more numbers that can be used by managers and decision makers in making better deci
n n n n n n n n n n n n n n n
sions. Calculating rates of return, financial ratios from a balance sheet and profit and loss
n n n n n n n n n n n n n n n
statement, determining the number of units that must be produced in order to break even,
n n n n n n n n n n n n n n n
and many similar techniques are examples of quantitative analysis. Qualitative analysis inv
n n n n n n n n n n n
olves the investigation of factors in a decision-
n n n n n n n
making problem that cannot be quantified or stated in mathematical terms. The state of
n n n n n n n n n n n n n
nthe economy, current or pending legislation, perceptions about a potential client, and si
n n n n n n n n n n n n
milar situations reveal the use of qualitative analysis. In most decision-
n n n n n n n n n n
making problems, both quantitative and qualitative analysis are used. In this book, howev
n n n n n n n n n n n n
er, we emphasize the techniques and approaches of quantitative analysis.
n n n n n n n n n
1-
2. Quantitative analysis is the scientific approach to managerial decision making. This type o
n n n n n n n n n n n n n
f analysis is a logical and rational approach to making decisions. Emotions, guesswork, and
n n n n n n n n n n n n n n
whim are not part of the quantitative analysis approach. A number of organizations suppo
n n n n n n n n n n n n n
rt the use of the scientific approach: the Institute for Operation Research and Managem
n n n n n n n n n n n n n
ent Science (INFORMS), Decision Sciences Institute, and Academy of Management.
n n n n n n n n n
1-
3. The three categories of business analytics are descriptive, predictive, and prescriptive.
n n n n n n n n n n n
n Descriptive analytics provides an indication of how things were performed in the past. Pre
n n n n n n n n n n n n n
dictive analytics uses past data to forecast what will happen in the future. Prescriptive an
n n n n n n n n n n n n n n
alytics uses optimization and other models to present better ways for a company to operate
n n n n n n n n n n n n n n
nto reach goals and objectives.
n n n n
1-4. Quantitative analysis is a step-by-
n n n n n
step process that allows decision makers to investigate problems using quantitative tech
n n n n n n n n n n n
niques. The steps of the quantitative analysis process include defining the problem, devel
n n n n n n n n n n n n
oping a model, acquiring input data, developing a solution, testing the solution, analyzin
n n n n n n n n n n n n
g the results, and implementing the results. In every case, the analysis begins with defini
n n n n n n n n n n n n n n
ng the problem. The problem could be too many stockouts, too many bad debts, or d
n n n n n n n n n n n n n n n
etermining the products to produce that will result in the maximum profit for the organ
n n n n n n n n n n n n n n
ization. After the problems have been defined, the next step is to develop one or more
n n n n n n n n n n n n n n n
n models. These models could be inventory control models, models that describe the debt sit
n n n n n n n n n n n n n
uation in the organization, and so on. Once the models have been developed, the next ste
n n n n n n n n n n n n n n n
11-2
Copyright © 2024 Pearson Education, Inc. n n n n n
QUANTITATIVE ANALYSIS FOR
MANAGEMENT,
14TH EDITION By RENDER
All Chapters 1 to15
11-1
Copyright © 2024 Pearson Education, Inc.
n n n n n
,TABLE OF CONTENT
n n
1. Introduction to Quantitative Analysisn n n
2. Probability Concepts and Applications
n n n
3. Decision Analysisn
4. Regression Models n
5. Forecasting
6. Inventory Control Models
n n
7. Linear Programming Models: Graphical and Comput
n n n n n
er Methods
n
8. Linear Programming Applications
n n
9. Transportation, Assignment, and Network Models n n n n
10. Integer Programming, Goal Programming, and N
n n n n n
onlinear Programming
n
11. Project Management n
12. Waiting Lines and Queuing Theory Models
n n n n n
13. Simulation Modeling n
14. Markov Analysis n
15. Statistical Quality Control n n
11-1
Copyright © 2024 Pearson Education, Inc.
n n n n n
,CHAPTER 1 n
Introduction to Quantitative Analysis n n n
TEACHING SUGGESTIONS n
Teaching Suggestion 1.1: Importance of Qualitative Factors.
n n n n n n
Section 1.1 gives students an overview of quantitative analysis. In this section, a number
n n n n n n n n n n n n n
nof qualitative factors, including federal legislation and new technology, are discussed. Stud
n n n n n n n n n n n
ents can be asked to discuss other qualitative factors that could have an impact on quantit
n n n n n n n n n n n n n n n
ative analysis. Waiting lines and project planning can be used as examples.
n n n n n n n n n n n
Teaching Suggestion 1.2: Discussing Other Quantitative Analysis Problems.
n n n n n n n
Section 1.2 covers an application of the quantitative analysis approach. Students can be aske
n n n n n n n n n n n n n
d to describe other problems or areas that could benefit from quantitative analysis.
n n n n n n n n n n n n
Teaching Suggestion 1.3: Discussing Conflicting Viewpoints.
n n n n n
Possible problems in the QA approach are presented in this chapter. A discussion of conflict
n n n n n n n n n n n n n n
ing viewpoints within the organization can help students understand this problem. For exa
n n n n n n n n n n n n
mple, how many people should staff a registration desk at a university? Students will wa
n n n n n n n n n n n n n n
nt more staff to reduce waiting time, while university administrators will want less staf
n n n n n n n n n n n n n
f to save money. A discussion of these types of conflicting viewpoints will help students
n n n n n n n n n n n n n n
nunderstand some of the problems of using quantitative analysis.
n n n n n n n n
Teaching Suggestion 1.4: Difficulty of Getting Input Data.
n n n n n n n
A major problem in quantitative analysis is getting proper input data. Students can be aske
n n n n n n n n n n n n n n
d to explain how they would get the information they need to determine inventory or
n n n n n n n n n n n n n n
dering or carrying costs. Role- n n n n
playing with students assuming the parts of the analyst who needs inventory costs and the i
n n n n n n n n n n n n n n n
nstructor playing the part of a veteran inventory manager can be fun and interesting. Stude
n n n n n n n n n n n n n n
nts quickly learn that getting good data can be the most difficult part of using quantitative
n n n n n n n n n n n n n n n n
analysis.
Teaching Suggestion 1.5: Dealing with Resistance to Change.
n n n n n n n
11-1
Copyright © 2024 Pearson Education, Inc. n n n n n
, Resistance to change is discussed in this chapter. Students can be asked to explain how th
n n n n n n n n n n n n n n n
ey would introduce a new system or change within the organization. People resisting ne
n n n n n n n n n n n n n
w approaches can be a major stumbling block to the successful implementation of quan
n n n n n n n n n n n n n
titative analysis. Students can be asked why some people may be afraid of a new invento
n n n n n n n n n n n n n n n
ry control or forecasting system.
n n n n
SOLUTIONS TO DISCUSSION QUESTIONS AND PROBLEMS n n n n n
1-
1. Quantitative analysis involves the use of mathematical equations or relationships in an
n n n n n n n n n n n n
alyzing a particular problem. In most cases, the results of quantitative analysis will be one o
n n n n n n n n n n n n n n n
r more numbers that can be used by managers and decision makers in making better deci
n n n n n n n n n n n n n n n
sions. Calculating rates of return, financial ratios from a balance sheet and profit and loss
n n n n n n n n n n n n n n n
statement, determining the number of units that must be produced in order to break even,
n n n n n n n n n n n n n n n
and many similar techniques are examples of quantitative analysis. Qualitative analysis inv
n n n n n n n n n n n
olves the investigation of factors in a decision-
n n n n n n n
making problem that cannot be quantified or stated in mathematical terms. The state of
n n n n n n n n n n n n n
nthe economy, current or pending legislation, perceptions about a potential client, and si
n n n n n n n n n n n n
milar situations reveal the use of qualitative analysis. In most decision-
n n n n n n n n n n
making problems, both quantitative and qualitative analysis are used. In this book, howev
n n n n n n n n n n n n
er, we emphasize the techniques and approaches of quantitative analysis.
n n n n n n n n n
1-
2. Quantitative analysis is the scientific approach to managerial decision making. This type o
n n n n n n n n n n n n n
f analysis is a logical and rational approach to making decisions. Emotions, guesswork, and
n n n n n n n n n n n n n n
whim are not part of the quantitative analysis approach. A number of organizations suppo
n n n n n n n n n n n n n
rt the use of the scientific approach: the Institute for Operation Research and Managem
n n n n n n n n n n n n n
ent Science (INFORMS), Decision Sciences Institute, and Academy of Management.
n n n n n n n n n
1-
3. The three categories of business analytics are descriptive, predictive, and prescriptive.
n n n n n n n n n n n
n Descriptive analytics provides an indication of how things were performed in the past. Pre
n n n n n n n n n n n n n
dictive analytics uses past data to forecast what will happen in the future. Prescriptive an
n n n n n n n n n n n n n n
alytics uses optimization and other models to present better ways for a company to operate
n n n n n n n n n n n n n n
nto reach goals and objectives.
n n n n
1-4. Quantitative analysis is a step-by-
n n n n n
step process that allows decision makers to investigate problems using quantitative tech
n n n n n n n n n n n
niques. The steps of the quantitative analysis process include defining the problem, devel
n n n n n n n n n n n n
oping a model, acquiring input data, developing a solution, testing the solution, analyzin
n n n n n n n n n n n n
g the results, and implementing the results. In every case, the analysis begins with defini
n n n n n n n n n n n n n n
ng the problem. The problem could be too many stockouts, too many bad debts, or d
n n n n n n n n n n n n n n n
etermining the products to produce that will result in the maximum profit for the organ
n n n n n n n n n n n n n n
ization. After the problems have been defined, the next step is to develop one or more
n n n n n n n n n n n n n n n
n models. These models could be inventory control models, models that describe the debt sit
n n n n n n n n n n n n n
uation in the organization, and so on. Once the models have been developed, the next ste
n n n n n n n n n n n n n n n
11-2
Copyright © 2024 Pearson Education, Inc. n n n n n
