Also known as quantitative approach Evolved from mathematical and statistical solutions developed for military problems during

g World War II Main postulates of the approach i. Management is a series of decision-making. The job of a manager is to secure the best solution out of a series of interrelated variables. ii. These variables can be presented in the form of a mathematical model. The model is a prototype of the decision situation. It continues of a set of functional equations which set out the quantitative interrelationship of the variables. iii. If the model is properly formulated and the equations are correctly solved, one can secure the best solution to the model. iv. Organizations exist for the achievement of specific and measurable economic goals. v. In order to achieve these goals, optimal decisions must be made through scientific formal reasoning backed by quantification. vi. Decision making models should be evaluated in the light of set criteria like cost reduction, return on investment, meeting time schedules, etc. vii. The quality of management is judged by the quality of decisions made in diverse situations. Uses