The production process requires a certain number of

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Unformatted text preview: and chairs. The production process requires a certain number of hours of carpentry works, painting and varnishing. Profit per unit production, hours required and available hours are given. Question: What is the “best” combination of Question: number of chairs and tables to manufacture in order to reach maximum profit. in 6 • Problem Solving using Quantitative Analysis Approach Defining Problem Developing Model Acquiring Data Feedback Developing Solutions Feedback Testing Solutions Analyzing Results Implementation 7 Defining Problem ➲ Clear, concise statement of the problem ➲ Beyond the symptoms, identify true case ➲ Concentrate on few problems ➲ Some specific measurable objectives are helpful Developing Model • Physical, scale, schematic and mathematical models • Variables (controllable, uncontrollable), decision variables • Parameters • Models: solvable, data are obtainable 8 Input Data ➲ GIGO principle (Garbage In, Garbage Out) ➲ From company document, reports ➲ Interview with employees and related persons ➲ Statistics Developing Solution • Solve equations • Trial and error • Complete enumeration • Develop algorithm 9 Testing the Solution ➲ Before analyzing and Implementing ➲ Determine the accuracy and completeness of the data ➲ Test the robustness of the model ➲ Some hand calculation may be useful Analyzing Result & Sensitivity Analysis • Determine the implication of results • Sensitivity analysis: how the solution will change with a different model or data Implementation • The need of Simulation ; Good, workable solution • Bad implementation: fail in efforts 10...
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This note was uploaded on 12/25/2013 for the course BUSINESS A 051iu taught by Professor Thu during the Spring '12 term at International University.

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