MT 340: Quantitative Methods

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MT 340 Quantitative Methods

• Dr. Caulk
• scaulk_at_regis.edu
• Quantitative Decision Making 7th ed by Lapin and
  Whisler

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Goals of this course

• Apply mathematical models to situations of
  decision making
• Construct decision trees
• Calculate optimal payoffs and strategies
• Formulate and use forecasting methods
• Formulate and solve linear optimization problems
• Perform sensitivity analysis

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Grade Breakdown

• Three exams 20 each
• Homework 35
• Attendance- 5

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• Quantitative methods are research techniques that
  are used to gather quantitative data -
  information dealing with numbers and anything
  that is measurable.
• lthttp//en.wikipedia.org/wiki/Quantitative_methods
  gt

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Motivation

• Controlling inventories
• Waiting lines
• Mail delivery systems
• Reservation systems
• Schedules
• Locating warehouses, fire-stations
• Improve Investing
• Distribution of Goods

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Models and Decision Making

• Learn to select the alternatives that best
  satisfy the decision makers goals.
• Identify goals
• Identify alternatives
• Yardsticks for comparison
• Cost
• Profit

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Mathematical Models

• Express the problem mathematically
• Variables
• Constants (or parameters)
• Use formulas to link variables and constants

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Inventory Problem

• Total annual cost
• ordering cost holding cost procurement cost
• Objective
• Minimize Total annual cost (A/Q)khc(Q/2)Ac
• Where A annual number of items demanded
• k cost of placing an order
• h annual cost per dollar value for
  holding
• items in inventory
• c unit cost of procuring an item
• Q order quantity