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