This revision of
Quantitative Methods for Business provides students with a conceptual understanding of the
role that quantitative methods play in the decision-making process. This text describes
the many quantitative methods that have been developed over the years, explains how they
work, and shows how the decision-maker can apply and interpret data. Written with the
non-mathematician in mind, this text is applications-oriented. Its "Problem-Scenario
Approach" motivates and helps students understand and apply mathematical concepts and
techniques. In addition, the managerial orientation motivates students by using examples
that illustrate situations in which quantitative methods are useful in decision making.
Benefits:
• NEW! Student
CD-ROM: A Student CD-ROM is included free with new copies of this edition. Included on the
CD are Excel worksheets for all text examples and Excel templates for all inventory and
waiting line models; The Management Scientist v. 6.0 (with manual), a time-limited version
of Crystal Ball 2000, an Educational version of Premium Solver for Excel, and TreePlan
Excel add-in (with manual).
• Crystal Ball 2000
Software: A FREE trial version of Crystal Ball is packaged with new copies of this
edition. A new spreadsheet appendix using the Crystal Ball to perform risk analysis is
presented in Chapter 16. Crystal Ball is demonstrated by solving the PortaCom simulation
problem presented in the chapter.
• Problem-Scenario
Approach: A hallmark feature of this text, the "Problem-Scenario Approach"
motivates and helps students understand and apply mathematical concepts and techniques.
The authors describe a problem in conjunction with the management science technique being
introduced. Students must apply the technique to the problem to generate a solution or
recommendation.
• Annotations:
Annotations that highlight key points and provide additional insights for the student are
a continuing feature of this edition. These annotations, which appear in the margins, are
designed to provide emphasis and enhance understanding of the terms and concepts being
presented in the text.
• Notes &
Comments: At the end of many sections, "Notes & Comments" give additional
insights about the statistical methodology and its application. These include warnings
about or limitations of the methodology, recommendations for application, and brief
descriptions of additional technical considerations.
• Self-Test
Exercises: Completely worked-out solutions for self-test exercises are provided in an
appendix. Students attempt the self-test exercise and immediately check the solution to
evaluate their understanding of the concepts presented in the chapter.
• Quantitative
Methods in Action: Throughout the text, articles present a summary of an application of
quantitative methods found in practice. Applications based on Interfaces, OR/MS Today
articles and write-ups provided by practitioners provide the source for this feature. 13
new articles have been added for a total of 45 in this edition.
• NEW! New
Version of Management Scientist Software: Prepared by the text authors, The Management
Scientist v. 6.0, with new user-friendly features (and its manual) will be packaged for
free with new copies of this edition.
• NEW! Software
Integration: Microsoft Excel is used for examples in the Inventory, Waiting Lines and
Simulations chapters. The Management Scientist v. 6.0 is used for examples in the Linear
and Integer Programming chapters.
• NEW! New and
Revised Software Appendices: Excel appendices appear in many chapters; a TreePlan appendix
appears in Chapter 4; appendices for The Management Scientist appear in Chapters 1 and 7;
a LINDO appendix appears in Chapter 7; Solver appendices (for those who wish to use Excel)
in Chapters 7, 8, and 9;.Crystal Ball in Chapter 13.
• NEW! Chapter
Introductions: Introductions have been revised to increase student motivation. Included
now are examples of real applications of the material to be covered in the chapter. To
provide a further applications orientation, a QM in Action boxed feature is now included
in the introduction of most chapters.
• NEW! Enhanced
Decision Analysis Chapter: An appendix describing how to use TreePlan has been added to
Chapter 4. TreePlan allows the user to build decision trees within an Excel worksheet.
Once all the probabilities and payoffs have been added to the tree, TreePlan computes the
optimal decision strategy. TreePlan makes it easier to conduct sensitivity analysis in a
decision analysis problem.
• NEW! Applications
Material: A new section in Chapter 9 illustrates the role quantitative methods plays in
revenue management in the airline industry. Another example of revenue management, how to
determine the number of cars to have available at a car rental location is now included in
Chapter 13. An example in Chapter 11 describes how the results of conjoint analysis can be
used in an integer programming model in order to choose the product design that will
maximize market share.
• NEW! Case
Problems: Five new case problems have been added to this edition. One in probability
distributions, one in linear programming applications (can be used as a capstone linear
programming case), one in inventory models, and two in simulation.
• NEW! New
Problems: Over 30 new problems are included in this edition.
Table of Contents:
1. Introduction
2. Introduction to Probability
3. Probability Distributions
4. Decision Analysis
5. Utility and Decision Making
6. Forecasting
7. An Introduction to Linear Programming
8. Linear Programming: Sensitivity Analysis and Interpretation of Solution
9. Linear Programming Applications
10. Transportation, Assignment, and Transshipment Problems
11. Integer Linear Programming
12. Project Scheduling: PERT/CPM
13. Inventory Models
14. Waiting Line Models
15. Simulation
16. Markov Processes
17. Multicriteria Decisions
Appendixes A-F
Index
890 pages