Oman College of

Management &Technology

DEPARTMENT OF ADMINISTRATIE & FINANCIAL SCIENCES

2021-2
ASSIGNMENT I(PBL)

Course Name: Quantitative Analysis II

Course Code: 10301
Assignment Topic:
1. Distinguish between QA and OR, and explain the role which played in decision making
process
2. Explain why is the Inventory important?
3. M&S company is wishing to determine the EOQ for their company. M runs a men’s
clothing line. While S needs to buy 12,000 shirts per year to fulfill demand (D). He incurs
a setup cost of $100 (S) and a holding fee (H) of $16 per shirt. Kindly help them to know
their EOQ.

Topic Given Date: 23 March 2022.

Assignment Submission Last Date: 14th April 2022.

Student ID: 202112033 Student Name: Abdulmajeed Abdullah Al harrrasi

Student Signature: ………………………………………… Date: ……………………………………….
Faculty Signature: ………………………………………. Date: ……………………………………….

Faculty Name: Dr. Asaad Mubarak

Instructions:
Plagiarism does not exceed 20% 
All questions are mandatory 
Individual work only accepted
Students must commit with the deadline of assignment 
Introduction:

The utilize of progressed expository apparatuses to help in decision-making features a significant

effect on this area's choices. The utilize of operational inquire about techniques and models to
demonstrate complicated substances and construct calculations for issues that are getting to be
progressively troublesome to unravel has had a part of victory over a long time. Here recognize
between QA (Amount investigation and the OR (operation inquire about) and the imperative of
Stock vital.

Operational research (OR) instruments and strategies have the capacity to adjust clashing
destinations where there are numerous elective courses of activity accessible to the decision-
makers when assets, time, and stores are constrained. Hence, past the space of hypothetical
information and show building exercises, OR has unavoidable applications in choice making in
issues in feasible designing. OR devices and strategies discover applications in all viewpoints of
maintainability operations. They empower adjust between financial, natural, and social impacts,
as the central concerns tended to by supportability, with the point of encouraging organizations’
worldwide operations to outlive and stay competitive. In addition, sustainable advancement may
be a wealthy range for scholastic inquire about that's still in its earliest stages and has the
potential to influence future government approach, current generation operations, and recognize
unused trade models. In this setting, the scholarly community should take the lead within the
plan, advancement, and exhibit of feasible operations investigate models, blessed and bolstered
by organizations. Building is the application of logical standards for down to earth targets such
as the forms, make, plan, and operation of items and administrations whereas bookkeeping for
imperatives conjured by economical variables. There are different components that ought to be
considered in arrange to address designing supportability, which is basic for the in general
maintainability of human advancement and movement. This Uncommon Issue points to gather
articles that create OR optimization models (reenactment, optimization, likelihood and
measurements, choice hypothesis, frameworks elements, multi-criteria decision making, etc.)
within the field of maintainable designing. Audit articles that bargain helpfully with feasible
building wrangles about are too welcome.

Quantitative analysis (QA) could be a strategy that employments numerical and measurable
modeling, estimation, and inquire about to get it behavior. Quantitative examiners speak to a
given reality in terms of a numerical esteem. Quantitative examination is connected to the
estimation, execution assessment, valuation of a monetary instrument, and foreseeing real-world
occasions such as changes in a country’s gross domestic product (GDP). Quantitative analysis
(QA) could be a strategy that employments numerical and measurable modeling, estimation, and
inquire about to get it behavior. Quantitative examiners speak to a given reality in terms of a
numerical esteem. Quantitative examination is connected to the estimation, execution
assessment, valuation of a monetary instrument, and foreseeing real-world occasions such as
changes in a country's gross domestic product (GDP). Whereas QA serves as a valuable
assessment instrument, it is frequently combined with the complementary inquire about and
assessment apparatus subjective examination. It is common for a company to utilize quantitative
investigation to assess figures such as deals income, benefit edges, or return on assets (ROA). In
any case, to urge distant better much better, higher, stronger and improved. a distant better
picture of a company's execution, investigators moreover assess data that's not effortlessly
quantifiable or decreased to numeric values, such as notoriety or worker resolve. Subjective
investigation centers on meanings, includes affectability to setting instead of the want to get
widespread generalizations, and sets up wealthy portrayals instead of quantifiable measurements.
Qualitative analysis looks for to reply the "why" and "how" of human behavior. In a combined
subjective and quantitative examination extend, a company, examiner, or speculator might wish
to assess the quality of an item. Subjective devices utilized for the venture can incorporate client
overviews and board dialogs. A quantitative examination of the item can too be started through
the examination of information with respect to numbers of rehash clients, client complaints, and
the number of guarantees claims over a given period. QA isn't the inverse of subjective
examination; they are fair distinctive rationalities. Utilized together, they give valuable data for
educated decisions that advance distant better much better, higher, stronger and improved a
higher society, move forward budgetary positions, and upgrade trade operations. Stock
administration is one of the essential ways a company maximizes potential deals. When a
company doesn't keep up a satisfactory level of stock, it puts itself in a position to lose out on
deals or customers. If a company carries much stock as well, it runs the hazard of the stock
getting to be obsolete or losing it to deterioration. This is often especially genuine in businesses
such as horticulture. Have to toss absent items since they ruined gets to be costly for companies
when it happens frequently.

Inventory

Inventory Breaks even with Money The basic truth behind any business is that it must make cash
to outlive. Whereas a few companies – those that give administrations as it were – can operate
without stock concerns, most businesses depend on offering an item to form money. Not as it
were having stock basic to making deals, but it is additionally significant for companies to
arrange and budget monetary uses successfully. Accept a T-shirt company knows that it has three
months of stock in stock and is right now in obligation. The company may select to pay off a few
of the obligation since it knows it contains a few months some time recently it must purchase
more shirts. On the off chance that that same T-shirt company knows that it has as it were
sufficient stock for one or two of weeks, it may postpone certain costs – such as obligation
reimbursement – to purchase extra stock that it should keep cash stream steady. Customer
Fulfillment and Loyalty Maintaining an appropriate stock level guarantees that when clients need
a item, the company can give it. Clients do not care around the coordination behind stock
administration; their concern is that a company has anything they need when they need it. When
a company offers out of an item a client needs, that client will likely take their commerce
somewhere else. Whereas this may as it was result in one misplaced deal, a company runs the tall
chance of losing that client for all time to a competitor. Suppose an eatery tries to arrange $500
in utensils from a company, but the company is out of stock. On the off chance that this happens
over and over – or indeed once – the eatery will likely select a distinctive provider. In the event
that the eatery buys $500 in utensils each month, this sums to a misfortune of $6,000 in potential
deals for the company. This misfortune is from one eatery. On the off chance that a few eateries
attempt to purchase utensils from the same company but cannot be due to stock issues, the
misfortunes will be much higher.

3-M&S Company is wishing to determine the EOQ for their company. M runs a men’s
clothing line. While S needs to buy 12,000 shirts per year to fulfill demand (D). He incurs a
setup cost of $100 (S) and a holding fee (H) of $16 per shirt. Kindly help them to know their
EOQ.
EOQ =√ 2 DS /H
Where
D_ represent demand or how many units of product you need to buy .
S_ represent setup cost
H_ represent the holding fee
Here
D = 12,000 Shirts
S=$100
H= $16
Economic order quantity (EOQ) =√ 2 DS / H
=√ 2(12000)(100)/16
¿ √ 24 x 10 /16
5

¿ √ 1.5 x 10
5

¿ √ 15 x 104
¿ 100 √ 15
= 30873x100
=387.3

Rounding to nearest whole unit

Economic order quantity (EOQ) = 388 shirts

Conclusion:

The logical prepare of deciphering information into bits of knowledge in arrange to create
superior choices is known as operations research (OR.). Whereas the Analytics is the think about
and examination of issues including complex frameworks utilizing logical and numerical
approaches for illustration quantity analysis (QA). In expansion the Stock control in businesses
must increment in lockstep with the company's extension. The method of supervising and
overseeing stock can be optimized with a vital arrange in put, which incorporates real-time
information on stock conditions and levels.

Reference:
Stats work. (2021) Significance of quantitative techniques in the decision making process.
Pioneer statistical. Retrieved from https://statswork.com/blog/significance-of-quantitative-
techniques-in-the-decision-making-process/

Tally Solutions. (2022) .Inventory Management: Importance and Benefits. Retrieved from
https://tallysolutions.com/inventory/benefits-importance-of-inventory-management/

Andric Gusavac B, Stojanovic D et al. (2014) Operational research and Quantitative methods in
Management. Application of some locational models in natural resources industry agriculture
case. Symerg. Retrieved from http://symorg.fon.bg.ac.rs/proceedings/papers/17%20-
%20OPERATIONAL%20RESEARCH%20AND%20QUANTITATIVE%20METHODS%20IN
%20MANAGEMENT.pdf

Lewis S. Operations research (OR). (1999).Techtarget. Retrieved from

https://whatis.techtarget.com/definition/operations-research-OR