QUANTITATIVE METHODS
Question One:
(a) Explain the uses of Quantitative methods to organizations
Clear allocation of resources; Business owners can now use quantitative methods to predict
trends, determine the allocation of resources, and manage projects. Quantitative techniques are
also used to evaluate investments. In such a way, organizations can determine the best assets to
invest in and the best time to do so.
Generation of empirical evidence; The purpose of quantitative research is to generate
knowledge and create understanding about the social world. Quantitative research is used by
social scientists, including communication researchers, to observe phenomena or occurrences
affecting individuals. Quantitative techniques enforce disciplined thinking about organizational
problems .They provide precise description of the cause and effect relationship and risk
elimination. Quantitative techniques replace subjective and intuitive approach with analytical
and objective approach
Quantitative techniques are also used to evaluate investments; This is in such a way that
organizations can determine the best assets to invest in and the best time to do so. The analysis
methods under quantitative techniques include regression analysis, linear programming and data
mining.
Helpful in inventory management; The inventory management is deal with planning and
control of inventory in the organization. If inventory holds for large time and in large quantity
then this idle resource and create losses for the organization. On the other hand, if there is
shortage of inventory then it also negative impacts on profitability of the organization.
Quantitative techniques maintain balance between holding the inventory or not hence enables
managers to decide when and how much to buy.
Useful in production management; Quantitative techniques are useful to the production
management due to proper plant layout, controlling the production movements and compute the
optimum product mix. Quantitative techniques are very helpful in planning, scheduling and
controlling of plant layout and designing of production process.
Helpful in human resource management; Today, It becomes a challenge for business to find
out best talent and how to retain this. Quantitative techniques helpful in studying personal
recruitment process, selection criteria, accident rates and labour turnover etc. These useful to the
Human resource management due to proper manpower planning, how much work pool needed to
cater labour absentism, routing and sequencing of workers in variety of jobs.
Basis for economic decision making; Quantitative methods provide techniques to tame this
growing accumulation of data as support for economic decision-making. The application targets
for these methods cover many fields of business, such as economics, finance, risk management,
quality management and logistics.
Reduction in cost and minimizing waiting or completing the task time; Time is essence in
service industry. It is rightly said that a good decision if taken at right time then outcome of that
decision will automatically good. There is gap between service time and capacity so serve. It
provides a base for businessman to take a correct and profitable decision.