QUANTITATIVE ANALYSIS

QUANTITATIVE ANALYSIS
AREA OF STUDY: CORE
BBA-212

Year: 2
Semester: 3

________________________________________
* Continuous
** Duration: 3 hours

Objectives:
To acquaint students with the basic concepts of quantitative tools to solve simple business problems (Quantitative Problems) and to provide the basic knowledge for advanced study of quantitative methods of solving managerial problems.
Contents
Unit 1: Introduction L. H. 1
Introduction of Quantitative techniques. The significance of Quantitative techniques in modern business world.
Unit 2: General Liner Programming Models (Graphical Methods) L.H. 12
Historical development of Linear Programming. Characteristic of Linear Programming models. Formulation of Linear Programming Models. General Linear Programming Techniques (Graphical vs simplex). Use of graphical methods to solve general linear programming problems. Steps of graphical method. Multiple solution, infeasible solution, unbounded solution.
Unit 3: Transportation and Assignment L.H. 13
General vs Special Purpose Linear Programme techniques, Mathematical formulation of transportation problem Initial solution techniques, improved solution of transportation problem (Using MODI method and Stepping stone method). Unbalanced transportation problem, Degeneracy in Transportation model, Assignment problem, Mathematical formulation of assignment problem, Iteration General steps of Assignment method.
Unit 4: Statistical decision and Game theory L. H. 8
Decision Environments, General steps of decision making process, Decision making under risk, Expected monetary value, and Expected opportunity loss criteria, Decision making under uncertainty: Maxima criteria, Minima criteria, Regret value criterion, Criterion of Realism (Hurwicz), Laplace criterion. Salvage value in decision making process, Marginal analysis. Expected profit with perfect information. Introduction to Game theory, optimal solution of two person zero-sum game (pure strategy).
Unit 5: Statistical Quality Control L. H. 5
Advantages and limitations of Statistical Quality Control. Acceptance of sampling. Control charts: X-chart, R-chart, Control charts by attributes: P-chart, Acceptance sampling plans and OC curve
Unit 6: Risk & Return L. H. 9
Introduction to Network models. Basic difference between PERT (Programme Evaluation and Review Technique) and CPM (Critical Path Method) PERT/CPM components: Events, Activities, Dummies, Critical path and critical activities. Calculation of activity contd times (ES, LS, EF, LF and Stock times). Use of probabilities to evaluate project completion time. Time and Cost trade off by crashing a project.
Suggested Readings
1. Kirkpatrick, Quantitative Approaches to Management
2. J. K. Sharma Quantitative Techniques for Managerial Decisions
3. Kothari, Quantitative Techniques
4. Sunity Shrestha, Production and Operations Management