11

1
Management Tools
2
Forecasting

• Forecast many things
• Demand, inventory, expenses
• Methods
• Time-series
• extend the curve (problems?)
• Modeling
• Regression (one variable)
• Econometric (multiple variables)
• Qualitative forecasting
• Delphi technique
• Sales force composition

3
Linear Programming

• Used when need to maximize (minimize) something
  but have constraints
• E.g. maximize profits
• Constraints may be
• Limited production capacity
• Limited supply of particular parts
• Relatively complex math
• Use computer software
• Big users airlines, shippers

4
Break-Even Analysis

• Calculate fixed costs
• Calculate variable costs vs. volume
• Project revenue vs. volume
• Graph revenue vs. total costs
• Break-even is where the curves cross

5
Business Examples

• Control at Harrahs
• Operations at Finagle a Bagle
• Managing information at Travelocity