MBA 650: Quantitative Analysis

1
MBA 650 Quantitative Analysis

• a.k.a.
• Management Science
• Operations Research

2
MBA 650 01 (day) Team Presentations

• Order of Presentation
• Team 1 2
• Alpha C1
• Beta C2
• Chess C3
• Delta C1
• Echo C2
• Flag C3

3
MBA 650 60 (off-site) Team
Presentations

• Order of Presentation
• Team 1 2
• Knight C1
• Midas C2
• Nova C3
• Sierra C1
• Tango C2
• Victor C3

4
QA is used to solve

• 1. Problems that are very complex
• 2. Problems that require an optimal solution
• 3. Problems that are beyond the decision makers
  experience
• 4. Problems that are repetitive and routine

5
The Math Model

• Decision Variables
• xj,
• j 1, 2, . . ., n
• Objective Function
• Optimize z f (x1, x2, . . ., xn)
• Constraints
• gi (x1, x2, . . . , xn) lt or or gt bi,
• i 1, 2, . . ., m

6
Example Reddy Mikks Paint Company

• Product (for wholesale distribution)
• x1 tons/day of exterior paint
• (price 3K/ton)
• x2 tons/day of interior paint
• (price 2K/ton)
• Objective
• optimize total gross revenue

7
Reddy Mikks Paint Company (cont.)

• Daily demand constraints
• 1. Demand for interior paint cant exceed demand
  for exterior paint by more than 1 ton
• 2. Demand for interior paint is limited to no
  more than 2 ton

8
Reddy Mikks Paint Company (cont.)

• Daily Resource Constraints
• tons of RM/ maximum
• ton of paint tons of RM ext. Int.
  Available
• RM A 1 2 6
• RM B 2 1 8

9
Problem Formulation

• Max z 3x1 2x2
• subject to
• x1 2x2 lt 6 (RM A in tons)
• 2x1 x2 lt 8 (RM B in tons)
• - x1 x2 lt 1 (Demand in tons)
• x2 lt 2 (Demand in tons)
• x1, x2 gt 0