Quantitative Methods For Business - Ch1

Front 1

The process of identifying identifying a difference between the actual and the desired state of affairs and then taking actions to resolve

Back 1

Problem Solving

Front 2

The term generally assaciated with the first five steps of the problem solving process

Back 2

Decision Making

Front 3

Problems in which the objective is to find the best solution with respect to one criterion

Back 3

Single-criterion decision problems

Front 4

Problems that involve more than one criterion

Back 4

Multicriterion decision problems

Front 5

First step in problem-solving process

Back 5

Identify and define

Front 6

Second step in problem-solving process

Back 6

Determine set of alternative problems

Front 7

Third step in problem-solving process

Back 7

Determine criterion used to evaluate alternative

Front 8

Fourth step in problem-solving process

Back 8

Evaluate alternatives

Front 9

Fifth step in problem-solving process

Back 9

Choose alternative

Front 10

Sixth step in problem-solving process

Back 10

Implement alternative

Front 11

Seventh step in problem-solving process

Back 11

Evaluate results

Front 12

The result of choosing "best" alternative

Back 12

Decision

Front 13

Analysis based primarily on manager's judgement

Back 13

Qualitative analysis

Front 14

Analysis based primarily on facts or data associated with the problem and develop mathematical expressions

Back 14

Quantitative analysis

Front 15

Problem is complex
Problem is important

Back 15

Reason fo using Quantitative analysis

Front 16

Problem is new
Problem is repetitive

Back 16

Reason fo using Quantitative analysis

Front 17

Representations of real objects

Back 17

Models

Front 18

Physical replicas

Back 18

Iconic models

Front 19

Physical models that do no have the same physical appearance as the object being modeled

Back 19

Analog models

Front 20

Representation of a problem by a system of symbols and mathmatical relationships or expressions

Back 20

Mathematical models

Front 21

Require less time
Less expensive
Reduce risks

Back 21

Reasons for experimenting with models

Front 22

Restrictions on managerial problem

Back 22

Constraints

Front 23

Mathematical expression that defines the quantity to be maximized or minimized

Back 23

Objective function

Front 24

Inputs such as environmental factors that can affect both the objective function and the constraints

Back 24

Uncontrollable inputs

Front 25

Inputs that can be determined by the decision maker

Back 25

Controllable inputs

Front 26

Another name for controllable inputs

Back 26

Decision variables

Front 27

A model in which all uncontrollable inputs are known and cannot vary

Back 27

Deterministic model

Front 28

A model in which at least one uncontrollable inputs is subject to variation

Back 28

Stochastic model

Front 29

Another name for Stochastic model
A model in which at least one uncontrollable inputs is subject to variation

Back 29

Probabilistic model

Front 30

How many uncontrollable inputs or data must be specified before we can analyze the model and make recommendations?

Back 30

All

Front 31

Identifing the values for unknown variables

Back 31

Data preparation

Front 32

The specific decision-variable values or values that provide the "best" output

Back 32

Optimal solution

Front 33

What you call a decision alternative that does not satisfy one or more of the model constraints

Back 33

Infeasible

Front 34

What you call a decision alternative that satisfies all model constraints

Back 34

Feasible

Front 35

Testing various decision alternative one after another

Back 35

Trial-and-error

Front 36

Reasons trial-an-error isn't best procedure

Back 36

Inefficient and time

Front 37

Why a simpler, less accurate, model may be used

Back 37

Easier solution

Front 38

Reports for the decision maker

Back 38

Managerial reports

Front 39

Portion of the total cost that does not depend on production volume

Back 39

Fixed cost

Front 40

Portion of the total cost dependant on production volume

Back 40

Variable costs

Front 41

Rate of change of the total cost with respect to production volume (cost increase associated with one-unit increase in production)

Back 41

Marginal cost

Front 42

Rate of chagne of total revenue with respect to sales volume (increase in revenue resulting from one-unit increase in sales volume)

Back 42

Marginal revenue

Front 43

Volume that results in total revenue equalling to total cost

Back 43

Breakeven point