QUANTITATIVE MANAGEMENT APPROACH

History

• Quantitative Management is a decision-making model that was developed during World War ll to solve military problems.
• Mathematicians, engineers and scientists joined together with the military to find solutions using mathematical and scientific tools and methods to solve an issue and have precision on decision making.
• It was to maximize the use of limited resources and technologies by mathematical models.
• Many mathematical tools such as linear programming, simulation model, and queuing theory were used.
• The quantitative school of management is a result of the research conducted during World War II.
• Quantitative Management continued to develop after World War ll, handling problems in business.

• Today, the role of computer technologies are heavily weighted in Quantitative Management.
• Software developments make these calculations and techniques more practical to use any environment.
• It is used in variety of different fields in business such as economics, finance, risk management, quality management and logistics.
• Used in management decision making in areas of planning and control.

Anika's Analysis

How is Quantitative method rooted in Maths and Science ?

Numerical and mathematical calculations are constantly used in our society and it improves our decision or judgment to live in a better environment. Our society is continuously developing and without the use of quantitative analysis, we cannot logically view an issue and precision on our data.

• Maths and Science are techniques and methods used in decision making, planning, forecasting, scheduling and monitoring task.
• Mathematical an statistical models are used to make optimal decisions in a situation when the probability of and out come is uncertain

Joy's Analysis

Definition

"Good judgment and appreciation for human factors must accompany use of quantitative analysis".

I believe this quote means that for humans to make important and effective decisions that would result in a successful outcome; we need the help or the accompany of quantitative analysis, in order to produce the accurate and precised result

Ways Quantitative analysis is used today ?

Quantitative management approach focuses on producing an optimal answer for a problem using mathematical tools.

The quantitative approach to management involves the use of quantitative techniques, such as statistics, information models, and computer simulations, to improve decision making.

Bibliography

• “What Is Quantitative Forecasting? Definition and Meaning.” BusinessDictionary.
• “Importance of Probabilities in Business.” Bizfluent, bizfluent.com/info-8273907-importance-probabilities-business.html.
• “MANAGEMENT SCIENCE.” Reference for Business, www.referenceforbusiness.com/management/Log-Mar/Management-Science.html.
• “Operations Research.” International Encyclopedia of the Social Sciences, Encyclopedia.com
• “BOH4M – Grade 12 Business Leadership – Management – Past to Present.” -- Onstudynotes, 30 Oct. 2012, onstudynotes.com/notes/boh4m-grade-12-business-leadership-management-past-to-present/.

Management Science

• It is also known as Operation Research.
• This uses complex mathematical tool and statistic method to approach a problem.

Examples of Management science techniques.

• Decision trees:
• Usually used in data analysis, it is a map of possible outcomes from given choices and it is used for decision makings and their possible consequences, including chance of event outcomes, resource costs, and utility.
• Logistics :
• It is the management of the flow of things between the point of origin and the point of consumption in order to meet requirements of customers or corporations (like shipping process).
• Queuing theory:
• It is the management of a waiting line (or queues) also called a waiting line theory. It is used for predicting and evaluating system performance such as the probability or the mean of waiting time to improve time management and operation process.
• Linear programming:
• Linear is used to describe the relationship between two or more variable and programming is to find optimal allocation of limited resource. Therefore, linear programming is used for achieving the most desirable outcome such as low cost or maximum profit.

QUANTITATIVE MANAGEMENT APPROACH