BUS206: Quantative Module

define payoff matrices

a table that visually represents the potential outcomes (payoffs) of different strategic chocies made

what are decision trees?

a diagram used to analyze a progression of decisions

define break-even analysis

a technique for identifying the point at which total revenue is just sufficient to cover total costs

define linear programming

a mathematical technqiue that solves resource allocation problems

what is the queing theory (waiting line theory)?

a way of balancing the cost of having a waiting line versus the cost of maintaning the line, management wants to have as few stations open as possible to minimize costs without testing the patience of its customers

what is the fixed-point reordering system?

a method for a system to “flag” the need to reorder inventory at some preestablished point in the process

what is the economic order quantity (EOQ)?

a model that seeks to balance the costs involved in ordering and carrying inventory, thus minimizing the total costs associated with carrying and ordering costs