Presented By Dr. K. Punitha Devi Head & Asst.

Transcript:Presented By Dr. K. Punitha Devi Head & Asst.:
Presented By Dr. K. Punitha Devi Head & Asst. Prof. Dept. of Commerce (CA) Bon Secours College for Women, Thanjavur Quantitative Techniques for Decision Making Tools Content Meaning and Definition Advantages Disadvantages Introduction: Quantitative Techniques are the powerful tools through which production can be augmented, profits maximized, costs minimized and production methods can be oriented for the accomplishment of certain pre-determined objectives. The study of quantitative techniques is a relatively new discipline which has its wide range of applications specially in the field of agriculture and industry. Of late, there has been a growing tendency to turn to quantitative techniques as a means for solving many of the problems that arise in a business or industrial enterprise. A large number of business problems, in the relatively recent past, have been given a quantitative representation with considerable degree of success. All this has attracted the students, business executives, public administrators alike towards the study of these techniques more ad more in the present time. Meaning: Quantitative techniques are those statistical and operations research or programming techniques which help in the decision making process specially concerning business and industry. Classification of Quantitative Techniques Statistical Techniques: (I) Probability theory and sampling analysis: Probability or random samples Non-probability or purposive samples (II) Correlation and regression analysis (III) Index Numbers (IV) Time series analysis (V) Interpolation and extrapolation (VI) Ratio-analysis (VII) Statistical quality control: Process control Accepting sampling (VIII) Other statistical techniques (B) Programming or Operations Research Techniques: Linear Programming Non – Linear Programming Inventory Planning Net Work Analysis / PERT Role of Quantitative Techniques in Business and Industry They provide a tool for scientific analysis. These techniques provide the executives with a more precise description of the cause and effect relationship and risks underlying the business operation in measurable terms and this eliminates the conventional intuitive and subjective basis on which managements used to formulate their decisions decades ago. They provide solution for various business problems. These quantitative techniques are being used in the field of productions, procurement, marketing, finance and other allied fields. They enable proper deployment of resources. Quantitative techniques render valuable help in proper deployment of resources. For example, Programme Evaluation and Review Technique enables us to determine the earliest and the latest times for each of the events and activities and thereby helps in the identification of the critical path. All this helps in the deployment of resources from one