Quantitative Management

Considered quantitative methods as an essential tool specifically to find ways of allocating scarce resources.

With the help of the quantitative method, it enables the company to find a way of setting the budget requirement and allocating purchases. Strategies are made based on the data obtained from marketing campaigns.

Assessing different proposals for costs, timing, and location employs quantitative methods. With effective product planning and scheduling, companies will be more able to satisfy their customers' needs while maximizing the company's profit.

Is a scientific method or technique that has a broad application for problem-solving and decision making for various organizations like a business, government, and service organizations.

Provide information about a situation or problem and offer an alternative or different way to assess a condition that may well help.

They uses quantitative methods to predict trends, determine the allocation of resources, and manage projects.

A technique that uses mathematical and statistical modeling, measurement, and research to understand behavior.

It is the determination of non-numerical information.

The accounting department of an organization utilizes different quantitative data and methods, such as to estimate the value of an investment, cost of production, and profit generation.

Quantitative methods help the business to predict the customer's demand for a product or service. They will be guided on how many materials they need to purchase, how to maintain inventory level, and minimize transportation costs likely to incur when shipping and storing finished goods

Is a quantitative method that determines how to achieve such an optimal solution. It is also used to determine how a company can make optimal profits and reduce its operating costs, subject to a given set of constraints, such as labor.

Using this approach, a business owner can establish a positive or negative correlation between two variables.

Developing a solution involves manipulating the model to derive the best (optimal)solution to the problem. Mathematical analysis for deriving optimum solution includes analytical or numerical procedure.

His phase aims to develop a clear, concise statement of the problem, which will give the scope of the problem under investigation. It involves determining the objective of the study and the constraints on what can be done.

Once the problem is defined, the next phase is to represent the problem into a mathematical model in the form of equations, relationships, or formulas. It involves the formulation of a mathematical model to represent the problem. Basically, it includes three basic elements: decision variables, objective function aim to optimize, and the constraints need to satisfy

The final phase is to implement the results. It is the process of translating the solution into operating procedures to make it easily understandable to the individuals who will implement the recommended solution.

A model is valid if it can provide a reliable prediction of the system's performance. This phase checks whether or not the proposed model does what it is supposed to do.

It is made up of two expressions set equal to each other. It has one or two variables which describe a relationship in which the value of one of the variables depends on the value of the other variable

Are expressions formed by placing an inequality symbol (<,>, ≤, and ≥) between numerical or variable expressions.

The boundary line is dashed line for ________.

The boundary line is solid for for _________.

It is a mathematical model technique designed to optimize the usage of limited resources that have been developed to help managers or administrators in decision-making.

Linear programming maximization is for _______?

Linear programming minimization is for _______?

The decision variable refers to any candidate (person, service, projects, jobs, tasks) competing with other decision variables for limited resources.

It is expressed as a linear function of decision variables (Z = X1 + X2, where Z represents the objective, I.e., minimization/maximization, X1 and X2 are the decision variables directly affecting the Z value).

These are limitations that restrict the alternatives available to decision- makers, each of which is either linear equality or linear inequality.

There must be a presence of alternative solutions for the purpose of choosing the best or optimum one.

The decision variables should always have non-negative values means the values for decision variables should be greater than or equal to 0

All relationships (objective function and constraints) must exhibit linearity with an assumption that decision variables are continuous.

It is assumed that all model coefficients are completely known.

Is a special algorithm of linear programming problem designed to minimize the cost of distributing the commodity from sources to destinations while satisfying both the supply limits and the demand requirements.

Where the supply of goods can be obtained are plants, factories, warehouses, or distribution centers.

Are customer outlets, depots, dealerships, and even warehouses.

He transportation problem is said to be ____________ when both supplies and demands are equal.

The transportation problem is said to be _________ when the supply and demand are not equal.

Are where goods will be delivered and allocated according to their requirements, indicated by the number of columns in the table.

Called the rim requirements of the rows.

is placed at the upper right-hand corner of its corresponding cell.

Also known as origins, are indicated by the number of rows in the table.

Is called the rim requirements of the column.

Is a method adopted to compute the initial feasible solution of the transportation problem.

method used to obtain the initial feasible solution for the transportation problem. The allocation begins with the cell, which has the minimum cost. The lower-cost cells are chosen over the higher- cost cell with the objective of having the least cost of transportation. This method is considered to produce the least total transportation cost than the Northwest Corner method as it considers the shipping cost before allocation.

It involves the penalty or regret for not assigning a resource to a requirement. In order to avoid penalties, priorities of allocating goods will be given to those cell routes with large penalties.

This method makes use of an unused cell as a point of destination in transferring units of truckload to evaluate if the current solution can still be developed, I.e., if the total transportation cost from a previous table can still be reduced.

When the total supply of all the sources is not equal to the total demand of all destinations

IT 305 Quantitative Methods UNIT 3 Lesson 6 – Unbalanced Transportation Problem If the capacity of the sources is not enough to meet the demand of the destinations, one or more destinations will not receive the full quantity ordered, and the results are lost sales, smaller profits, and risk of losing customers to competitors. We must create a dummy source of supply to meet the excess demand because the distribution method is not applicable unless supply equals demand. The cost of shipment from the dummy origin to each destination is assumed to be zero because the dummy supplier will schedule no shipment and so no costs are incurred.

This is a case wherein the production of the sources exceeds the requirement of the destinations, and the profits are reduced by the loss caused by the unsold quantity. To solve this problem, it is necessary that we add a dummy destination to absorb the excess production of the plants. The transportation costs from the source to this dummy destination are zero because no shipment is actually involved.