Name: Adelson B. Arado ID No.

: 190000002087

Subject: Quantitative Techniques in Business Date: September 07, 2019

The Tennis Shop

I. Short Summary

The tennis store is renowned for its tennis rackets speciality. It sells three kinds of rackets: the
junior, the medium and the forward. The store works individually. Since there is a heavy backlog of
order for the Junior and Intermediate, the store can sell all these models that are produced and there is
a limited number of outstanding players, the shop expects to sell no more than 4,800 of the advance
racket.

II. Relate the case to any of the chapter we discussed

In the Simplex Method, a technique for solving linear programming models, the case can be
related to our discussion. The business can produce better ideas into its decision-making process by
using this technique and it will boost organizational efficiency.

III. Identify and diagnose the problems by asking 3 questions

Who made the bad decision?

 Since the company is planning to forecast their production schedule for the next
month, no one has made a bad decision.
Did they have enough information to make a good decision?
 The tennis shop’s manager provide enough information that is needed in for the
forecasting of their production schedule for the next month.   
Did they have the incentive to make a good decision?
 The manager has the incentive to make a good decision because of the provided
data and the result of the analysis can affect and improve the performance of the
company.

IV. Present a methodology for diagnosing and repairing problems within an organization

 Tabulate the given information

 Set up the objective function and the problem constraints
 Enter the equalities in the simplex table
 Define objective
 Define constraints
 Derived the value
 Find the best solution
 Consider qualitative factors that may affect the decision making process
V. What strategies or principles highlighted?

Simplex is the technique used to reach the company's analytical need. The Simplex method
selects a variable that can modify the minimum system and assess whether there is no answer.

VI. Discuss the general impact of the case to you as an MBA student

As an MBA student, the case allow me to appreciate the importance of these method in the
business. Simplex method is possibly the most important algorithmic development of the 20th century.
Several refined modelling languages and software implementations of different variants of the simplex
algorithm are widely used, and they are consistently efficient in solving problems with tens of thousands
or more of variables and constraints. It will allow also the decision maker to enter appropriate values of
the variables in the problem and find out the variable value that contributes maximum objective
function and remove those values which give undesirable result.