Quantitative analysis has been in existence since the beginning of recorded history, but Mr. Fredrick W. Taylor coined the principals of the scientific approach to management that we know and use today. Quantitative analysis is defined as a scientific approach to managerial decision making. Quantitative analysis employees mathematical and statistical tools as well as quantitative information or data. Although it was coined quantitative analysis, qualitative factors must be considered also. If there is a lack of qualitative factors makes it difficult to quantify which can lead a hindrance in the decision making process. The successful use of quantitative techniques employing qualitative factors to help with decision making will result in a solution that is accurate, timely, flexible, reliable, economical, and easy to understand and use.
Quantitative analysis consists of seven steps that are used in its approach. The first step consists of defining the problem. This can be the most important step. It is used to develop a clear, concise statement of the problem at hand, which will g
Mathematical models also have two types of variables:
3. Bad unreliable model or results- all he seven steps must be done to produce a good and helpful model.
The next step, step six, is to perform a sensitivity analysis. This is to determine how robust the model is and how strong the model is. It is also called the “What if type analysis,” which is a matter of degree.
1. The optimal or the best solution such as linear programming.
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