QUANTITATIVE TECHNIQUES
Meaning and Definition:
Quantitative techniques may be defined as those techniques which provide the decision makes a systematic and powerful means of analysis, based on quantitative data. It is a scientific method employed for problem solving and decision making by the management. With the help of quantitative techniques, the decision maker is able to explore policies for attaining the predetermined objectives. In short, quantitative techniques are inevitable in decision-making process.
Classification of Quantitative Techniques:
There are different types of quantitative techniques. We can classify them into three categories. They are:
1. Mathematical Quantitative Techniques
2. Statistical Quantitative Techniques
3. Programming Quantitative Techniques
Mathematical Quantitative Techcniques:
A technique in which quantitative data are used along with the principles of mathematics is known as mathematical quantitative techniques. Mathematical quantitative techniques involve:
1. Permutations and Combinations: Permutation means arrangement of objects in a definite order. The number of arrangements depends upon the total number of objects and the number of objects taken at a time for arrangement. The number of permutations or arrangements is calculated by using the following formula:-
Npr = n!/(n-r)!
The combination means selection or grouping objects without considering their order. The number of combinations is calculated by using the following formula:-
Ncr = n!/(n-r)!
2. Set Theory:- Set theory is a modern mathematical device which solves various types of critical problems
3. Matrix Algebra: Matrix is an orderly arrangement of certain given numbers or symbols in rows and columns. It is a mathematical device of finding out the results of different types of algebraic operations on the basis of the relevant matrices.
4. Determinants: It is a powerful device developed over the matrix algebra. This device is used for finding out values of different variables connected with a number of simultaneous equations.
5. Differentiation: It is a mathematical process of finding out changes in the dependent variable with reference to a small change in the independent variable.
6. Integration: Integration is the reverse process of differentiation.
7. Differential Equation: It is a mathematical equation which involves the differential coefficients of the dependent variables.