Quantitative Methods in Problem-Solving

Characteristics of Quantitative Methods

• Provide measurable data to reach comparable and useful results
• Assume alternative plans for achieving objectives
• Plan data regarding collected observations
• Configuration through statistical methods
• Check data reliability
• Estimate parameters for forecasting and planning purposes

Essential Functions of Quantitative Methods

• Facilitate the decision-making process
• Provide tools for scientific research
• Select an appropriate strategy
• Help in the reduction of cost
• Help in the proper deployment of resources
• Minimize the required time for completing the task

Phases in Implementing Quantitative Analysis

Problem Definition

• Develop a clear, concise statement of the problem
• Determine the objective of the study and the constraints on what can be done

Model Construction

• Represent the problem into a mathematical model in the form of equations, relationships, or formulas
• Formulate a mathematical model to represent the problem
• Three basic elements: decision variables, objective function, and constraints

Model Solution

• Manipulate the model to derive the best (optimal) solution to the problem
• Use mathematical analysis for deriving optimum solution through analytical or numerical procedures

Model Validity

• Check whether the proposed model provides a reliable prediction of the system’s performance
• Validate the model to ensure it does what it is supposed to do

Implementation

• Translate the solution into operating procedures
• Final phase of quantitative analysis implementation

Applications of Quantitative Analysis

• Project Management
• Production Planning
• Marketing
• Finance
• Purchase and Inventory