QUANTITATIVE MODELS FOR

DECISION-MAKING

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INVENTORY MODELS QUEING THEORY NETWORK MODELS

FORECASTING REGRESSION ANALYSIS LINEAR PROGRAMMING

SIMULATION STATISTICAL DECISION- SAMPLING THEORY

MAKING

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 Qualitative Models for Decision-Making

INVENTORY
Inventory Models
MODELS

1. ECONOMIC ORDER QUANTITY MODEL

2. PRODUCTION ORDER QUANTITY MODEL

3. BACK ORDER INVENTORY MODEL

4. QUANTITY DISCOUNT MODEL

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 Qualitative Models for Decision-Making

QUEUING
Inventory Models
THEORY

Determine the number of services that will minimise both

customer waiting time and cost of service.

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 Qualitative Models for Decision-Making

NETWORK
Inventory Models
MODELS

• PROGRAM EVALUATION REVIEW TECHNIQUE (PERT)

Technique which enables the engineer managers to
schedule, monitor, and control large and complex
projects by employing three time estimates for each
activities.

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 Qualitative Models for Decision-Making

NETWORK
Inventory Models
MODELS

• THE CRITICAL PATH METHOD (CPM)

Technique which enables the engineer managers to
schedule, monitor, and control large and complex
projects by using only one time factor per activity.

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 Qualitative Models for Decision-Making

FORECASTING
Inventory Models

• Decisions in consideration with the future

• May be defined as “the collection of PAST and CURRENT
information

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 Qualitative Models for Decision-Making

REGRESSION
Inventory Models
ANALYSIS

Forecasting method that examines the association of two

or more variables.

May be simple to multiple depending on the independent

variables present

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 Qualitative Models for Decision-Making

LINEAR PROGRAMMING
Inventory Models

Used to produce an optimum solution within the bounds

imposed by constraints upon decision.

Useful for SUPPLY and DEMAND limitations

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 Qualitative Models for Decision-Making

SIMULATION
Inventory Models

• Model constructed to represent REALITY, on which

conclusions about real-life problems can be used

• Highlysophisticated tool due to the development of

mathematical model of the system

• Does not guarantee optimum solution but can evaluate

alternatives

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 Qualitative Models for Decision-Making

STATISTICAL DECISION-THEORY
Inventory Models

• Rational way to conceptualise, analyse, and solve

problems in situations involving limited, or partial
information about decision environment.

• Evaluation of alternatives - BAYESIAN ANALYSIS

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 Qualitative Models for Decision-Making

SAMPLING
Inventory Models
THEORY

• Samples of population are statistically determined to be

used for a number of process

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