Quantitative approaches like linear programming and simulation can handle many variables in strategy formulation but have limitations. Linear programming requires linear relationships and no uncertainty, while simulation can model non-linear relationships, economies of scale, and uncertainty. Both approaches require assumptions that may not reflect real-world complexity.

1. Quantitative versus Qualitative
Approaches

2. 1. Application of Management Science
• Management Science offers several possible approaches to
strategy formulation.
Two approaches that are capable of handling a large number of
variables are:
1) Mathematical Programming
2) Simulation

3. • Linear programming
 is applicable in those situations where relationships are
linear and there is no uncertainty.

4. • Simulation
may be useful in those strategy situations which do not fall
within the limitations of linear programming.

5. Linear programming
• There is no economies or
diseconomies of scale.
• There is no uncertainty.
Simulation
• Non linear relationship,
such as economies of scale.
• May easily be incorporated
and probabilistic data,
• Reflect the presence of
uncertainty.

6. • this is a formidable task, involving many assumptions as to: