QUANTITATIVE TECHNIQUES FOR MANAGEMENT DECISIONS
Instructor: Dr. Rakesh Belwal
0. Introduction
Nature and developments of Management Science and QT, Characteristics and overview, Modelling approaches for decision making with brief description of deterministic and stochastic models. Applications of QT in industries and management **. Limitations of QT**.
1.1 Linear Programming
Requirements of linear programming problems, formulation of linear programming problem, graphical solution *, simplex algorithm, computational procedure in simplex, duality and its concept, primal-dual conversion, application of L.P. model to product mix and production scheduling problems**, sensitivity analysis*, limitations of linear programming**.
1.2 Special Cases in Linear Programming
Transportation model: Definition of transportation model, formulation and solution methods, Minimization and Maximization cases, Preferred and prohibited routes and degeneracy in transportation problems.
Assignment Model: Definition of assignment model, comparison with transportation model, formulation and solution methods, The Hungarian method of solution, Minimization and Maximization cases, Preferred and prohibited assignments**, the travelling salesman problem**.
2. Network Analysis
Network concepts, CPM & PERT, Network calculations and construction of diagrams, Time estimates and activity schedules*, slack and floats, determination of critical path.
3. Inventory Theory
Deterministic Model; Economic order quality model (EOQ)* ; Production planning* ; Stochastic Models
4. Queuing Models
Structure and components of a queuing process, Examples of real queuing systems, Queuing theory assumptions, Single and Multi Channel queuing models, Application of queuing models**
5. Decision Theory
Concepts in decision making, decision situations, decision making using expected values, decision criteria for decision making under uncertainty, utility functions, decision tree**.
6. Game theory
Formulation of Two-person Zero-sum game, Solution of simple games, Mixed strategy games, Reduction using Dominated Strategies, Determination of the Value of Game
7. Simulation Models
Simulation Modelling, Random Numbers and Variables generation, Monte Carlo Simulation, Simulation Applications**.
* Independent work to be individually performed by each student
** Group work to be collectively performed by students in cross functional groups
Project/ Assignment:
Students (individually and /or in groups) shall pick a Management Science Topic/ Model and shall-
- Write a well-researched paper reflecting both the theoretical and application aspects of the chosen topic/ model.
- Present the relevant topic / model in the class.
Suggested Books:
- Introduction to Management Sciences, W.I. Stevenson, Irwin, Inc., Boston.
- Operation Research -,An Introduction , A.H. Taha Macmillan Publishing Co.
- Executive Decisions and operations Research by W.D. Miller and M.K Starr , Prentice Hall Inc, Eglewood Cliffs, N.J,
- Frederick S. Hillier, Gerald J. Lieberman, Frederick Hillier, Introduction to Operations Research, McGraw-Hill
Students are further suggested to refer to other available books and the latest text in the reputable journals.