2. Calculus

  1. Paolo Brandimarte

Published Online: 24 MAY 2011

DOI: 10.1002/9781118023525.ch2

Quantitative Methods: An Introduction for Business Management

Quantitative Methods: An Introduction for Business Management

How to Cite

Brandimarte, P. (2011) Calculus, in Quantitative Methods: An Introduction for Business Management, John Wiley & Sons, Inc., Hoboken, NJ, USA. doi: 10.1002/9781118023525.ch2

Publication History

  1. Published Online: 24 MAY 2011
  2. Published Print: 4 APR 2011

ISBN Information

Print ISBN: 9780470496343

Online ISBN: 9781118023525

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Keywords:

  • calculus;
  • concavity;
  • convexity;
  • definite integrals;
  • economic order quantity (EOQ) model;
  • graphing functions;
  • inventory control theory;
  • sensitivity analysis;
  • series integrals;
  • Taylor's expansions

Summary

This chapter starts with a motivating example from inventory control theory, the economic order quantity (EOQ) model. Then, it provides readers with a little background on numbers, intervals, and permutations. Functions, the core business of calculus, are introduced in the chapter, followed by a discussion on continuous functions, building functions by composition, and inverting functions. Next, the chapter introduces the derivative of a function, which is one of the main tools of calculus, and explains rules for calculating derivatives. The first application of derivatives is in graphing functions. The chapter illustrates their role in sensitivity analysis and in approximating complicated functions by Taylor's expansions. It also describes the foundations of optimization methods, including the essential concepts of convexity and concavity. Finally, the chapter outlines two other useful tools: series and definite integrals.

Controlled Vocabulary Terms

sensitivity analysis