OMBA Quantitative Analysis for Decision Management

Trainers
Dr. Mulugeta K |
Micheale Birhane |

Today's modern time managers operate in face multiple alternatives and choices in allocation of resources, which could not be done through rule of thumb. The pronouncement here is that, managers are required to make use of systematic and structured procedures. This course provides students with the basic mathematical models and techniques that are applicable in different business decision making scenarios. Topics such as linear programming, transportation models, queuing models, inventory management, simulations models as well as game theories will be covered

Course Information

Objectives

At the completion of this course, students will be able to:

Know significance of quantitative analysis in managerial decision making
Understand the different models of Operation Research appreciate the application of OR model in solving different quantitative problem.
Make rational decisions based on quantitative evidence

Course Content

UNIT 1: LINEAR PROGRAMMING/LPP; Formulation of LPP, Graphical method, Solution- BFS. Optimal, Simplex method, Big ‘m’ method, Primal and dual LPP, and Sensitivity Analysis.

UNIT 2: TRANSPORTATION MODEL; Formulation, Method of finding BFS, North-West corner method, Matrix minima method, Vogel’s approximation method, Towards optimality Modi method, Loops, Unbalanced TPP, Maximization TPP

UNIT 3: ASSIGNMENT MODEL; Formulation, Hungarian algorithm, Unbalanced AP, Traveling sales man problem

UNIT 4: Correlation and Regression Analysis : correlation analysis: introduction, determining the correlation coefficient, testing the statistical significance of the correlation coefficient, correlation analysis for qualitative variables: spearman's correlation analysis, regression analysis: introduction, simple linear regression analysis, determining the coefficient of determination, testing the statistical significance of the regression coefficient, multiple regression analysis, testing the statistical significance of the regression coefficients (t-test), building the model and testing the overall fitness of the model.

UNIT 5: Network Modeling:

General network concepts, Networking algorithms, Basic Difference Between PERT and CPM PERT/CPM Network Components and precedence Relationship, Critical Path Analysis(Forward pass method and Backward pass method), Project Scheduling with Uncertain Activity Times Project cost and Crashing, and Trade off Analysis between Project cost and time.

UNIT 6: Decision Theory

Introduction to decision theory, Baic Terms in Decision Theory, Decision Making situations: Decision Making Under Certainity, Decision Makin Under Uncertainty or Ignorance (with decision making criteria of MaxiMax, MaxiMin, MiniMax-Regret, and LaPlace –Average), Decision Making Under Risk (with decision making criteria of expected value and expected opportunity lost.

References

Text

Stevenson W. J. and Ceyhun O. (2007): Introduction to Management Science, Mc Graw Hill, New York.

References

Kagsadale, managerial decision modeling, revised edition, 2008, south west publishers.
Kothari C. R., Quantitative Techniques, 3rd revised edition, (2005), New Delhi: Vikas Publishing House Ltd.
Sharam, J. K., (2004), Business Statistics, Delhi: Baba Barkha Nath printers
Agrwal, D. R., (2008), Business Statistics. Delhi: Vrinda Publications Ltd.
Bowerman, O’Connel and Hand, Business Statistics in Practice, 2nd edition, Boston: McGraw-Hill Irwin.