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
Do market share forecasts

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. Time Value of Money Important in project and investment decisions
Principle:
A dollar in the future is worth less than it is today
Why?
How does this affect decisions?

6. Business Examples Control at Harrah’s Operations at Finagle a Bagle
Managing information at Travelocity