Quantitative Analysis for Management

by Render, Barry; Stair, Ralph M.; Hanna, Michael E.

• ISBN13: 9780131857025
• ISBN10: 0131857029
• Edition: 9th
• Format: Hardcover w/CD
• Copyright: 2009-01-01
• Publisher: Prentice Hall

Summary

Easy to understand-even for learners with limited math backgrounds, this book uses a modeling approach to provide thorough coverage of the basic techniques in quantitative methods and focuses on the managerial applications of these techniques. An interesting and reader friendly writing style makes for a clear presentation, complete with all the necessary assumptions and mathematical details.Chapter topics include probability concepts and applications, decision models and decision trees, regression models, forecasting, inventory control models, linear programming modeling applications and computer analyses, network models, project management, simulation modeling, and more.For an introduction toquantitative analysis, quantitative management, operations research, or management science-especially for those individuals preparing for work in agricultural economics and health care fields.

Author Biography

Michael E. Hanna is Professor of Decision Sciences at the University of Houston - Clear Lake (UHCL). Ralph Stair is a retired professor in the College of Business at Florida State University. Barry Render is the Charles Harwood Distinguished Professor of Management Science at the Roy E. Crummer Graduate School of Business at Rollins College in Winter Park, Florida.

Table of Contents

Preface	xv
Introduction to Quantitative Analysis	1	(20)
Introduction	2	(1)
What Is Quantitative Analysis?	2	(1)
The Quantitative Analysis Approach	3	(4)
Defining the Problem	3	(1)
Developing a Model	3	(1)
Acquiring Input Data	4	(1)
Developing a Solution	5	(1)
Testing the Solution	5	(1)
Analyzing the Results and Sensitivity Analysis	5	(2)
Implementing the Results	7	(1)
The Quantitative Analysis Approach and Modeling in the Real World	7	(1)
How to Develop a Quantitative Analysis Model	7	(2)
The Advantages of Mathematical Modeling	9	(1)
Mathematical Models Categorized by Risk	9	(1)
The Role of Computers and Spreadsheet Models in the Quantitative Analysis Approach	9	(3)
Possible Problems in the Quantitative Analysis Approach	12	(4)
Defining the Problem	12	(2)
Developing a Model	14	(1)
Acquiring Input Data	14	(1)
Developing a Solution	15	(1)
Testing the Solution	15	(1)
Analyzing the Results	15	(1)
Implementation---Not Just the Final Step	16	(5)
Lack of Commitment and Resistance to Change	16	(1)
Lack of Commitment by Quantitative Analysts	16	(1)
Summary	17	(1)
Glossary	17	(1)
Key Equations	17	(1)
Self-Test	18	(1)
Discussion Questions and Problems	18	(1)
Case Study: Food and Beverages at Southwestern University Football Games	19	(1)
Bibliography	20	(1)
Probability Concepts and Applications	21	(46)
Introduction	22	(1)
Fundamental Concepts	22	(2)
Types of Probability	23	(1)
Mutually Exclusive and Collectively Exhaustive Events	24	(3)
Adding Mutually Exclusive Events	26	(1)
Law of Addition for Events That Are Not Mutually Exclusive	26	(1)
Statistically Independent Events	27	(1)
Statistically Dependent Events	28	(2)
Revising Probabilities with Bayes' Theorem	30	(2)
General Form of Bayes' Theorem	32	(1)
Further Probability Revisions	32	(2)
Random Variables	34	(1)
Probability Distributions	35	(4)
Probability Distribution of a Discrete Random Variable	35	(1)
Expected Value of a Discrete Probability Distribution	36	(1)
Variance of a Discrete Probability Distribution	37	(1)
Probability Distribution of a Continuous Random Variable	38	(1)
The Binomial Distribution	39	(3)
Solving Problems with the Binomial Formula	40	(1)
Solving Problems with Binomial Tables	40	(2)
The Normal Distribution	42	(7)
Area Under the Normal Curve	42	(2)
Using the Standard Normal Table	44	(3)
Haynes Construction Company Example	47	(2)
The Exponential Distribution	49	(1)
The Poisson Distribution	49	(18)
Summary	50	(1)
Glossary	51	(1)
Key Equations	51	(1)
Solved Problems	52	(4)
Self-Test	56	(1)
Discussion Questions and Problems	57	(4)
Internet Homework Problems	61	(1)
Case Study: Century Chemical Company	61	(1)
Case Study: WTVX	62	(1)
Bibliography	62	(1)
Appendix 2.1 Derivation of Bayes' Theorem	62	(1)
Appendix 2.2 Basic Statistics Using Excel	63	(4)
Decision Analysis	67	(48)
Introduction	68	(1)
The Six Steps in Decision Making	68	(2)
Types of Decision-Making Environments	70	(1)
Decision-Making Under Uncertainty	71	(4)
Maximax	71	(1)
Maximin	72	(1)
Criterion of Realism (Hurwicz Criterion)	72	(2)
Equally Likely (Laplace)	74	(1)
Minimax Regret	74	(1)
Decision Making Under Risk	75	(6)
Expected Monetary Value	75	(1)
Expected Value of Perfect Information	76	(1)
Expected Opportunity Loss	77	(1)
Sensitivity Analysis	78	(1)
Using Excel QM to Solve Decision Theory Problems	79	(2)
Decision Trees	81	(6)
Sensitivity Analysis	86	(1)
How Probability Values Are Estimated by Bayesian Analysis	87	(3)
Calculating Revised Probabilities	87	(2)
Potential Problem in Using Survey Results	89	(1)
Utility Theory	90	(25)
Measuring Utility and Constructing a Utility Curve	90	(3)
Utility as a Decision-Making Criterion	93	(3)
Summary	96	(1)
Glossary	96	(1)
Key Equations	97	(1)
Solved Problems	97	(6)
Self-Test	103	(1)
Discussion Questions and Problems	104	(6)
Internet Homework Problems	110	(1)
Case Study: Starting Right Corporation	110	(1)
Case Study: Blake Electronics	110	(2)
Internet Case Studies	112	(1)
Bibliography	112	(1)
Appendix 3.1 Decision Models with QM for Windows	113	(1)
Appendix 3.2 Decision Trees with QM for Windows	114	(1)
Appendix 3.3 Using Excel for Bayes' Theorem	114	(1)
Regression Models	115	(34)
Introduction	116	(1)
Scatter Diagrams	116	(1)
Simple Linear Regression	117	(2)
Measuring the Fit of the Regression Model	119	(3)
Coefficient of Dertermination	121	(1)
Correlation Coefficient	121	(1)
Using Computer Software for Regression	122	(2)
Assumptions of the Regression Model	124	(2)
Estimating the Variance	125	(1)
Testing the Model for Significance	126	(1)
The Analysis of Variance Table	127	(1)
Multiple Regression Analysis	127	(3)
Binary or Dummy Variables	130	(1)
Model Building	130	(2)
Nonlinear Regression	132	(3)
Cautions and Pitfalls in Regression Analysis	135	(14)
Summary	136	(1)
Glossary	136	(1)
Key Equations	136	(1)
Solved Problems	137	(2)
Self-Test	139	(1)
Discussion Questions and Problems	140	(3)
Case Study: North-South Airline	143	(1)
Bibliography	144	(1)
Appendix 4.1 Formulas for Regression Calculations	144	(2)
Appendix 4.2 Regression Models Using QM for Windows	146	(3)
Forecasting	149	(40)
Introduction	150	(1)
Types of Forecasts	150	(2)
Time-Series Models	150	(1)
Causal Models	151	(1)
Qualitative Models	151	(1)
Scatter Diagrams and Time Series	152	(2)
Measures of Forecast Accuracy	154	(2)
Time-Series Forecasting Models	156	(19)
Decomposition of a Time Series	156	(1)
Moving Averages	157	(3)
Exponential Smoothing	160	(4)
Trend Projections	164	(2)
Seasonal Variations	166	(2)
Seasonal Variations with Trend	168	(2)
The Decomposition Method of Forecasting with Trend and Seasonal Components	170	(4)
Using Regression with Trend and Seasonal Components	174	(1)
Monitoring and Controlling Forecasts	175	(2)
Adaptive Smoothing	177	(1)
Using the Computer to Forecast	177	(12)
Summary	178	(1)
Glossary	179	(1)
Key Equations	179	(1)
Solved Problems	180	(2)
Self-Test	182	(1)
Discussion Questions and Problems	183	(2)
Internet Homework Problems	185	(1)
Case Study: Forecasting Attendance at SWU Football Games	185	(1)
Internet Case Study	186	(1)
Bibliography	186	(1)
Appendix 5.1 Forecasting with QM for Windows	187	(2)
Inventory Control Models	189	(52)
Introduction	190	(1)
Importance of Inventory Control	191	(1)
Decoupling Function	191	(1)
Storing Resources	191	(1)
Irregular Supply and Demand	191	(1)
Quantity Discounts	191	(1)
Avoiding Stockouts and Shortages	192	(1)
Inventory Decisions	192	(1)
Economic Order Quantity: Determining How Much to Order	193	(7)
Inventory Costs in the EOQ Situation	195	(1)
Finding the EOQ	196	(1)
Sumco Pump Company Example	197	(1)
Purchase Cost of Inventory Items	198	(1)
Sensitivity Analysis with the EOQ Model	199	(1)
Reorder Point: Determining When to Order	200	(1)
EOQ Without the Instantaneous Receipt Assumption	201	(5)
Annual Carrying Cost for Production Run Model	202	(1)
Annual Setup Cost of Annual Ordering Cost	202	(1)
Determining the Optimal Production Quantity	203	(1)
Brown Manufacturing	203	(3)
Quantity Discount Models	206	(4)
Use of Safety Stock	210	(6)
ROP with Known Stockout Costs	211	(3)
Safety Stock with Unknown Stockout Costs	214	(2)
ABC Analysis	216	(2)
Dependent Demand: The Case for Material Requirements Planning	218	(6)
Material Structure Tree	218	(1)
Gross and Net Material Requirements Plan	219	(2)
Two or More End Products	221	(3)
Just-in-Time Inventory Control	224	(1)
Enterprise Resource Planning	225	(16)
Summary	226	(1)
Glossary	226	(1)
Key Equations	226	(1)
Solved Problems	227	(2)
Self-Test	229	(1)
Discussion Questions and Problems	230	(6)
Internet Homework Problems	236	(1)
Case Study: Sturdivant Sound Systems	236	(1)
Case Study: Martin--Pullin Bicycle Corporation	237	(1)
Internet Case Studies	237	(1)
Bibliography	237	(1)
Appendix 6.1 Inventory Control with QM for Windows	238	(3)
Linear Programming Models: Graphical and Computer Methods	241	(52)
Introduction	242	(1)
Requirements of a Linear Programming Problem	242	(2)
Basic Assumptions of LP	243	(1)
Formulating LP Problems	244	(2)
Flair Furniture Company	244	(2)
Graphical Solution to a LP Problem	246	(10)
Graphical Representation of Constraints	246	(5)
Isoprofit Line Solution Method	251	(3)
Corner Point Solution Method	254	(2)
Solving Flair Furniture's LP Problem Using QM for Windows and Excel	256	(5)
Using QM for Windows	256	(1)
Using Excel's Solver Command to Solve LP Problems	257	(4)
Solving Minimization Problems	261	(4)
Holiday Meal Turkey Ranch	261	(4)
Four Special Cases in LP	265	(4)
No Feasible Solution	265	(2)
Unboundedness	267	(1)
Redundancy	267	(1)
Alternate Optimal Solutions	268	(1)
Sensitivity Analysis	269	(24)
High Note Sound Company	270	(1)
Changes in the Objective Function Coefficient	271	(1)
QM for Windows and Changes in Objective Function Coefficients	272	(1)
Excel Solver and Changes in Objective Function Coefficients	272	(2)
Changes in the Technological Coefficients	274	(1)
Changes in the Resources or Right-Hand-Side Values	275	(2)
QM For Windows and Changes in Right-Hand-Side Values	277	(1)
Excel Solver and Changes in Right-Hand-Side Values	277	(1)
Summary	277	(1)
Glossary	277	(1)
Solved Problems	278	(4)
Self-Test	282	(1)
Discussion Questions and Problems	283	(7)
Internet Homework Problems	290	(1)
Case Study: Mexicana Wire Works	290	(2)
Internet Case Study	292	(1)
Bibliography	292	(1)
Linear Programming Modeling Applications: With Computer Analyses in Excel and QM for Windows	293	(40)
Introduction	294	(1)
Marketing Applications	294	(4)
Media Selection	294	(2)
Marketing Research	296	(2)
Manufacturing Applications	298	(5)
Production Mix	298	(1)
Production Scheduling	299	(4)
Employee Scheduling Applications	303	(4)
Assignment Problems	303	(2)
Labor Planning	305	(2)
Financial Applications	307	(1)
Portfolio Selection	307	(1)
Transportation Applications	308	(5)
Shipping Problem	308	(1)
Truck Loading Problem	309	(4)
Transshipment Applications	313	(2)
Distribution Centers	313	(2)
Ingredient Blending Applications	315	(18)
Diet Problems	316	(1)
Ingredient Mix and Blending Problems	316	(3)
Summary	319	(1)
Self-Test	320	(1)
Problems	320	(8)
Internet Homework Problems	328	(1)
Case Study: Red Brand Canners	328	(2)
Case Study: Chase Manhattan Bank	330	(1)
Bibliography	331	(2)
Linear Programming: The Simplex Method	333	(60)
Introduction	334	(1)
How to Set Up the Initial Simplex Solution	334	(6)
Converting the Constraints to Equations	335	(1)
Finding an Initial Solution Algebraically	335	(1)
The First Simplex Tableau	336	(4)
Simplex Solution Procedures	340	(1)
The Second Simplex Tableau	341	(4)
Interpreting the Second Tableau	344	(1)
Developing the Third Tableau	345	(3)
Review of Procedures for Solving LP Maximization Problems	348	(1)
Surplus and Artificial Variables	348	(2)
Surplus Variables	349	(1)
Artificial Variables	349	(1)
Surplus and Artificial Variables in the Objective Function	350	(1)
Solving Minimization Problems	350	(9)
Graphical Analysis	351	(1)
Converting the Constraints and Objective Function	352	(1)
Rules of the Simplex Method for Minimization Problems	353	(1)
First Simplex Tableau for the Muddy River Chemical Corporation Problem	353	(2)
Developing a Second Tableau	355	(1)
Developing a Third Tableau	356	(2)
Fourth Tableau for the Muddy River Chemical Corporation Problem	358	(1)
Review of Procedures for Solving LP Minimization Problems	359	(1)
Special Cases	360	(2)
Infeasibility	360	(1)
Unbounded Solutions	360	(1)
Degeneracy	361	(1)
More Than One Optimal Solution	362	(1)
Sensitivity Analysis with the Simplex Tableau	362	(6)
High Note Sound Company Revisited	362	(1)
Changes in the Objective Function Coefficients	363	(2)
Changes in Resources or RHS Values	365	(2)
Sensitivity Analysis by Computer	367	(1)
The Dual	368	(4)
Dual Formulation Procedures	370	(1)
Solving the Dual of the High Note Sound Company Problem	370	(2)
Karmarkar's Algorithm	372	(21)
Summary	372	(1)
Glossary	372	(1)
Key Equation	373	(1)
Solved Problems	373	(7)
Self-Test	380	(1)
Discussion Questions and Problems	381	(8)
Internet Homework Problems	389	(1)
Case Study: Coastal States Chemicals and Fertilizers	390	(1)
Bibliography	391	(2)
Transportation and Assignment Models	393	(58)
Introduction	394	(1)
Transportation Model	394	(1)
Assignment Model	394	(1)
Special-Purpose Algorithms	394	(1)
Setting Up a Transportation Problem	395	(1)
Developing an Initial Solution: Northwest Corner Rule	396	(2)
Stepping-Stone Method: Finding a Least-Cost Solution	398	(9)
Testing the Solution for Possible Improvement	399	(3)
Obtaining an Improved Solution	402	(5)
Modi Method	407	(3)
How to Use the Modi Approach	407	(1)
Solving the Executive Furniture Corporation Problem with Modi	408	(2)
Vogel's Approximation Method: Another Way to Find an Initial Solution	410	(3)
Unbalanced Transportation Problems	413	(2)
Demand Less Than Supply	413	(1)
Demand Greater Than Supply	413	(2)
Degeneracy in Transportation Problems	415	(2)
Degeneracy in an Initial Solution	415	(1)
Degeneracy During Later Solution Stages	416	(1)
More Than One Optimal Solution	417	(1)
Maximization Transportation Problems	417	(1)
Unacceptable or Prohibited Routes	417	(1)
Facility Location Analysis	418	(3)
Locating a New Factory for Hardgrave Machine Company	418	(3)
Approach of the Assignment Model	421	(7)
The Hungarian Method (Flood's Technique)	422	(4)
Making the Final Assignment	426	(2)
Unbalanced Assignment Problems	428	(1)
Maximization Assignment Problems	428	(23)
Summary	430	(1)
Glossary	430	(1)
Key Equations	431	(1)
Solved Problems	431	(7)
Self-Test	438	(1)
Discussion Questions and Problems	438	(9)
Internet Homework Problems	447	(1)
Case Study: Andrew--Carter, Inc.	447	(1)
Case Study: Old Oregon Wood Store	448	(1)
Internet Case Studies	449	(1)
Bibliography	449	(1)
Appendix 10.1 Using QM for Windows	449	(1)
Appendix 10.2 Comparison of Simplex Algorithm and Transportation Algorithm	450	(1)
Integer Programming, Goal Programming, and Nonlinear Programming	451	(46)
Introduction	452	(1)
Integer Programming	452	(11)
Harrison Electric Company Example of Integer Programming	453	(1)
Branch and Bound Method	454	(1)
Harrison Electric Company Revisited	455	(3)
Using Software to Solve the Harrison Integer Programming Problem	458	(2)
Mixed Integer Programming Problem Example	460	(3)
Modeling with 0--1 (Binary) Variables	463	(5)
Capital Budgeting Example	463	(1)
Limiting the Number of Alternatives Selected	464	(1)
Dependent Selections	464	(1)
Fixed Charge Problem Example	464	(2)
Financial Investment Example	466	(2)
Goal Programming	468	(11)
Example of Goal Programming: Harrison Electric Company Revisited	469	(1)
Extension to Equally Important Multiple Goals	470	(1)
Ranking Goals with Priority Levels	471	(1)
Solving Goal Programming Problems Graphically	472	(2)
Modified Simplex Method for Goal Programming	474	(3)
Goal Programming with Weighted Goals	477	(2)
Nonlinear Programming	479	(18)
Nonlinear Objective Function and Linear Constraints	479	(1)
Both Nonlinear Objective Function and Nonlinear Constraints	480	(2)
Linear Objective Function with Nonlinear Constraints	482	(1)
Computational Procedures for Nonlinear Programming	482	(1)
Summary	483	(1)
Glossary	483	(1)
Solved Problems	484	(2)
Self-Test	486	(1)
Discussion Questions and Problems	487	(5)
Internet Homework Problems	492	(1)
Case Study: Schank Marketing Research	492	(1)
Case Study: Oakton River Bridge	492	(1)
Case Study: Puyallup Mall	493	(1)
Bibliography	494	(3)
Network Models	497	(28)
Introduction	498	(1)
Minimal-Spanning Tree Technique	498	(3)
Maximal-Flow Technique	501	(4)
Shortest-Route Technique	505	(20)
Summary	509	(1)
Glossary	509	(1)
Solved Problems	509	(3)
Self-Test	512	(1)
Discussion Questions and Problems	513	(6)
Internet Homework Problems	519	(1)
Case Study: Binder's Beverage	519	(1)
Case Study: Southwestern University Traffic Problems	520	(1)
Internet Case Study	521	(1)
Bibliography	521	(1)
Appendix 12.1 Network Models with QM for Windows	521	(4)
Project Management	525	(42)
Introduction	526	(1)
Framework of Pert and CPM	526	(1)
Pert	527	(12)
General Foundry Example of Pert	527	(2)
Drawing the Pert Network	529	(1)
Activity Times	530	(1)
How to Find the Critical Path	531	(5)
Probability of Project Completion	536	(2)
What Pert Was Able to Provide	538	(1)
Sensitivity Analysis and Project Management	538	(1)
Pert/Cost	539	(6)
Planning and Scheduling Project Costs: Budgeting Process	540	(3)
Monitoring and Controlling Project Costs	543	(2)
Critical Path Method	545	(5)
Project Crashing with CPM	545	(2)
Project Crashing with Linear Programming	547	(3)
Other Topics in Project Management	550	(17)
Subprojects	551	(1)
Milestones	551	(1)
Resource Leveling	551	(1)
Software	551	(1)
Summary	551	(1)
Glossary	552	(1)
Key Equations	552	(1)
Solved Problems	553	(2)
Self-Test	555	(1)
Discussion Questions and Problems	556	(4)
Internet Homework Problems	560	(1)
Case Study: Southwestern University Stadium Construction	561	(1)
Case Study: Family Planning Research Center of Nigeria	562	(1)
Internet Case Studies	563	(1)
Bibliography	563	(1)
Appendix 13.1 Project Management with QM for Windows	564	(3)
Waiting Lines and Queuing Theory Models	567	(40)
Introduction	568	(1)
Waiting Line Costs	568	(2)
Characteristics of a Queuing System	570	(6)
Arrival Characteristics	570	(2)
Waiting Line Characteristics	572	(1)
Service Facility Characteristics	572	(2)
Identifying Models Using Kendall Notation	574	(2)
Single-Channel Queuing Model with Poisson Arrivals and Exponential Service Times (M/M/I)	576	(6)
Assumptions of the Model	576	(1)
Queuing Equations	577	(1)
Arnold's Muffler Shop Case	578	(4)
Enhancing the Queuing Environment	582	(1)
Multiple-Channel Queuing Model with Poisson Arrivals and Exponential Service Times (M/M/m)	582	(5)
Equations for the Multichannel Queuing Model	583	(1)
Arnold's Muffler Shop Revisited	584	(3)
Constant Service Time Model (M/D/I)	587	(2)
Equations for the Constant Service Time Model	587	(1)
Garcia-Golding Recycling, Inc.	588	(1)
Finite Population Model (M/M/I with Finite Source)	589	(3)
Equations for the Finite Population Model	589	(1)
Department of Commerce Example	590	(2)
Some General Operating Characteristic Relationships	592	(1)
More Complex Queuing Models and the Use of Simulation	592	(15)
Summary	593	(1)
Glossary	593	(1)
Key Equations	594	(1)
Solved Problems	595	(3)
Self-Test	598	(1)
Discussion Questions and Problems	599	(3)
Internet Homework Problems	602	(1)
Case Study: New England Foundry	602	(2)
Case Study: Winter Park Hotel	604	(1)
Internet Case Study	604	(1)
Bibliography	604	(1)
Appendix 14.1 Using QM for Windows	605	(2)
Simulation Modeling	607	(44)
Introduction	608	(1)
Advantages and Disadvantages of Simulation	609	(1)
Monte Carlo Simulation	610	(9)
Using QM for Windows for Simulation	616	(1)
Simulation with Excel Spreadsheets	617	(2)
Simulation and Inventory Analysis	619	(6)
Simkin's Hardware Store	619	(4)
Analyzing Simkin's Inventory Costs	623	(2)
Simulation of a Queuing Problem	625	(3)
Port of New Orleans	625	(2)
Using Excel to Simulate the Port of New Orleans Queuing Problem	627	(1)
Fixed Time Increment and Next Event Increment Simulation Models	628	(1)
Simulation Model for a Maintenance Policy	628	(6)
Three Hills Power Company	629	(4)
Cost Analysis of the Simulation	633	(1)
Building an Excel Simulation Model for Three Hills Power Company	634	(1)
Two Other Types of Simulation Models	634	(2)
Operational Gaming	634	(2)
Systems Simulation	636	(1)
Verification and Validation	636	(1)
Role of Computers in Simulation	637	(14)
Summary	638	(1)
Glossary	638	(1)
Solved Problems	638	(4)
Self-Test	642	(1)
Discussion Questions and Problems	643	(5)
Internet Homework Problems	648	(1)
Case Study: Alabama Airlines	648	(1)
Case Study: Statewide Development Corporation	649	(1)
Internet Case Studies	650	(1)
Bibliography	650	(1)
Markov Analysis	651	(30)
Introduction	652	(1)
States and State Probabilities	652	(3)
The Vector of State Probabilities for Three Grocery Stores Example	653	(2)
Matrix of Transition Probabilities	655	(1)
Transition Probabilities for the Three Grocery Stores	655	(1)
Predicting Future Market Shares	656	(1)
Markov Analysis of Machine Operations	657	(1)
Equilibrium Conditions	658	(3)
Absorbing States and the Fundamental Matrix: Accounts Receivable Application	661	(20)
Summary	666	(1)
Glossary	666	(1)
Key Equations	666	(1)
Solved Problems	667	(4)
Self-Test	671	(1)
Discussion Questions and Problems	671	(4)
Internet Homework Problems	675	(1)
Case Study: Rentall Trucks	675	(1)
Internet Case Studies	676	(1)
Bibliography	677	(1)
Appendix 16.1 Markov Analysis with QM for Windows	677	(1)
Appendix 16.2 Markov Analysis with Excel	678	(3)
Statistical Quality Control	681	(22)
Introduction	682	(1)
Defining Quality and TQM	682	(1)
Statistical Process Control	683	(2)
Variability in the Process	683	(2)
Control Charts for Variables	685	(5)
The Central Limit Theorem	685	(1)
Setting x-Chart Limits	686	(2)
Setting Range Chart Limits	688	(2)
Conrol Charts for Attributes	690	(13)
p-Charts	690	(3)
c-Charts	693	(1)
Summary	694	(1)
Glossary	694	(1)
Key Equations	694	(1)
Solved Problems	695	(2)
Self-Test	697	(1)
Discussion Questions and Problems	697	(2)
Internet Homework Problems	699	(1)
Case Study: Morristown Daily Tribune	700	(1)
Internet Case Study	700	(1)
Bibliography	701	(1)
Appendix 17.1 Using QM for Windows for SPC	701	(2)
APPENDICES	703	(22)
Appendix A Areas Under the Standard Normal Curve	704	(2)
Appendix B Binomial Probabilities	706	(5)
Appendix C Values of eλ for Use in the Poisson Distribution	711	(1)
Appendix D Using QM for Windows	712	(4)
Appendix E Using Excel QM	716	(1)
Appendix F Solutions to Selected Problems	717	(4)
Appendix G Solutions to Self-Tests	721	(4)
Index	725