Developing a solution, testing the solution, and analyzing the results are important steps in the quantitative analysis approach. Because we will be using mathematical models, these steps require mathematical calculations. Excel 2016 can be used to help with these calculations, and some spreadsheets developed in Excel will be shown in some chapters. However, some of the techniques presented in this book require sophisticated spreadsheets and are quite tedious to develop. Fortunately, there are two software programs available from the Companion Website for this book that make this much easier:

1. POM-QM for Windows is an easy-to-use decision support program that was developed for production and operations management (POM) and quantitative methods (QM) courses.

   POM for Windows and QM for Windows were originally separate software packages for each type of course. These are now combined into one program called POM-QM for Windows. As seen in Program 1.1, it is possible to display all the modules, only the POM modules, or only the QM modules. The images shown in this textbook will typically display only the QM modules. Hence, in this book, reference will usually be made to QM for Windows. Appendix E at the end of the book provides more information about QM for Windows.

   

   Figure 1.1 Full Alternative Text

   To use QM for Windows to solve the break-even problem presented earlier, from the Module drop-down menu select Breakeven/Cost-Volume Analysis. Then select New-Breakeven Analysis to enter the problem. When the window opens, enter a name for the problem and select OK. Upon doing this, you will see the screen shown in Program 1.2A. The solution is shown in Program 1.2B. Notice the additional output available from the Window drop-down menu.

   

   Program 1.2A Entering the Data for Pritchett’s Precious Time Pieces Example into QM for Windows

   Figure 1.2A Full Alternative Text

   

   Program 1.2B QM for Windows Solution Screen for Pritchett’s Precious Time Pieces Example

   Figure 1.2B Full Alternative Text

   Files for the QM for Windows examples throughout the book can be downloaded from the Companion Website. Opening these files will demonstrate how data are input for the various modules of QM for Windows.

2. Excel QM, an add-in for Excel, can also be used to perform the mathematical calculations for the techniques discussed in each chapter. When installed in Excel 2016, Excel QM will appear as a tab on the ribbon. From this tab, the appropriate model can be selected from a menu, as shown in Program 1.3. Appendix F has more information about this. Excel files with the example problems shown can be downloaded from the Companion Website.

   

   Program 1.3 Excel QM in Excel 2016 Ribbon and Menu of Techniques

   Figure 1.3 Full Alternative Text

   To use Excel QM in Excel 2016 to solve the break-even problem presented earlier, from the Alphabetical menu (see Program 1.3) select Breakeven Analysis. When this is done, a worksheet is prepared automatically, and the user simply inputs the fixed cost, variable cost, and revenue (selling price per unit), as shown in Program 1.4. The solution is calculated when all the inputs have been entered.

   

   Figure 1.4 Full Alternative Text

   Excel 2016 contains some functions, special features, formulas, and tools that help with some of the questions that might be posed in analyzing a business problem. One such feature, Goal Seek, is shown in Program 1.5 as it is applied to the break-even example. Excel 2016 also has some add-ins that must be activated before using them the first time. These include the Data Analysis add-in and the Solver add-in, which will be discussed in later chapters.