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Quantitative Theory

The quantitative theory includes operation research and quantification of the problem.  It analyses the problems from quantifiable angles and provides solutions to complex problems only with the help of statistical and mathematical models such as linear and non-linear programming, game theory, decision tree, simulation and probability.  Computers are used to solve management problems whereas mathematical models were previously used for the purpose. A large number of problems are solved with the use of simulation equations and computers.  The development of equations requires specialized skills and advance knowledge of mathematics, statistics, economics and behavioral sciences.  Models are tested while the context of the real world and use of operation research.  Operation research is conducted by diverse specialists and management experts.  It is useful from the levels of planning for organizing, actuating and control. It is known that mathematical models do not provide the ultimate solutions.  If they are used in a given environment with real assumptions, they can suggest appropriate measures which can be used for solving problems.  The quantitative approach is merely a tool for finding a suitable solution, but is not a solution in itself.  It has become a valuable supplement rather than a substitute for management and organization.  The role of human skills and behavior cannot be ignored for the purpose of management. Even in highly computerized systems, the human element cannot be ignored.  The use of computers has economized and facilitated many problems.  The management does not need to resort to monotonous cumbersome processes but can easily and swiftly find the real problem or can diagnose the problem with real solutions.  Computers have helped managements and people arrive at correct decisions which would not be possible without the use of quantitative techniques. This precise and prompt approach has also prevented other problems. The cost of communication and maintenance of huge files has been considerably reduced by the computerized management technique.

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