QUANTITATIVE APPROACHES TO MANAGEMENT.

Abstract

Flying by the seat of the pants can be a dangerous practice in a fast moving management jet age that requires and is demanding more precise planning, measurement, prediction, analysis and control. Today more than ever, management needs the best information it can get for guiding business operations both present and future. The margin for management error is becoming smaller and costlier. A number of mathematically based procedures -- some old and some new -are supplying useful quantitative information to management that is enabling it to fly a surer, more accurate course. The purpose of this paper is to discuss the way in which of several of these procedures are contributing to better management. Very briefly, linear programming is an allocation technique. Basically, it allocates a limited amount of company resources among the demands that compete for the use of those resources. The resources are allocated according to some criterion such as lowest cost, most profit, greatest quantity, least time, highest utilization of equipment, and the like. For example, orders can be assigned to machine centers where there are alternate machines on which the orders can be run -- according to least time, greatest quantity, least cost, and the like. 1.In our experience, programming methods have enabled management to make better use of existing facilities. Each installation, without exception, has resulted in finding a "pot of gold." 2. This approach and insight into management problems provided the manager are making him more effective. This is especially true when evaluating alternatives quantitatively needs to be done. 3. Much business information that management has historically thought important, turns out in many cases to have little importance. Conversely, the importance and significance of other information is greater than management thought previously. Good results have been obtained and increases in profits, decreases in costs, and improved service have resulted... [ABSTRACT FROM AUTHOR]