Quantitative Techniques for Decision Making

OBJECTIVE:

• To apply quantitative techniques in modeling and solving business related problems.

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UNIT I - INTRODUCTION TO LINEAR PROGRAMMING (LP) ‍

Relevance of quantitative techniques in management decision making. Linear Programming-formulation, solution by graphical and simplex methods (Primal – Penalty, Two Phase), Special cases. Sensitivity Analysis.

UNIT II - LINEAR PROGRAMMING EXTENSIONS‍

Assignment Models (Minimising and Maximising Problems) – Balanced and Unbalanced Problems. Solution by Hungarian and Branch and Bound Algorithms. Travelling Salesman problem. Crew Assignment Models.

UNIT III DECISION AND GAME THEORIES

Decision making under risk – Decision trees – Decision making under uncertainty.
Game Theory-Two-person Zero sum games-Saddle point, Dominance Rule, Convex Linear Combination (Averages), methods of matrices, graphical and LP solutions.

UNIT IV INVENTORY AND REPLACEMENT MODELS

‍Inventory Models – EOQ and EBQ Models (With and without shortages), Quantity Discount Models.
Replacement Models-Individual replacement Models (With and without time value of money) – Group Replacement Models.

UNIT V QUEUING THEORY AND SIMULATION ‍

Queuing Theory – single and multi-channel models – infinite number of customers and infinite calling source.
Monte Carlo simulation – use of random numbers, application of simulation techniques

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