Quantitative Techniques for Management
h h h
MBA First Year
h h h
Paper No. 6h h
School of Distance Education
h h h
Bharathiar University, Coimbatore - 641 046
h h h h h
, Author:h Ph Nh Mishrah &h Sh Jaisankar
Copyrighth ©h 2007,h Bharathiarh University
h AllhRightshReserved
Editedhby:hDr.hSubodhhKesharwani
h Producedh andh Printed
by
EXCELh BOOKSh PRIVATEh LIMITED
A-45,h Naraina,h Phase-I,
Newh Delhi-
110028h for
SCHOOLh OFh DISTANCEh EDUCATION
Bharathiarh University
h Coimbatore-641046
, CONTENTS
PagehNo.
Unith-I
Lessonh1 QuantitativehTechniquesh–hIntroduction 7
Lessonh2 MeasureshofhCentralhTendency 24
Lessonh3 MathematicalhModel 110
Lessonh4 LinearhProgramming:hGraphicalhMethod 119
Lessonh5 LinearhProgramming:hSimplexhMethod 143
Unith-II
Lessonh6 TransportationhModel 167
Lessonh7 AssignmenthModel 209
Unith-III
Lessonh8 NetworkhModel 241
Lessonh9 WaitinghModelh(QueuinghTheory) 272
Unith-IV
Lessonh10 Probability 299
Lessonh11 TheoreticalhProbabilityhDistributions 359
Lessonh12 ProbabilityhDistributionhofhahRandomhVariable 409
Unit-V
Lessonh13 InventoryhModel 449
Lessonh14 GamehTheory 472
Lessonh15 Simulation 495
, QUANTITATIVEhTECHNIQUEShFORhMANAGEMENT
NumberhofhCredithHoursh:h3h(Three)
SubjecthDescription:hThishcoursehpresentshthehvarioushmathematicalhmodels,hnetworking,hprobability,hin
ventoryhmodelshandhsimulationshforhmanagerialhdecisions.
Goals:h Toh enableh theh studentsh toh learnh techniquesh ofh operationsh researchh andh resourcesh managemen
thandhtheirhapplicationhinhdecisionhmakinghinhthehmanagement.
Objectives:h Onh successfulh completionh ofh theh courseh theh studentsh shouldh have:
1. Understoodh theh basich ofh theh quantitativeh techniques.
2. Learnth theh feasibleh solutionh andh optimumh solutionh forh theh resourceh management.
3. Learnth theh timeh estimationh andh criticalh pathh forh project.
4. Learnth abouth theh applicationh ofh probabilityh techniquesh inh theh decisionh making.
5. Learnth theh varioush inventoryh modelsh andh simulationsh inh theh resourceh planningh andh management.
UNIThI
QTh –h Introductionh –h Measuresh ofh Centralh Tendencyh –h Mean,h Median,h Mode.
MathematicalhModelsh–hdeterministichandhprobabilistich–hsimplehbusinesshexamplesh–
h ORhandhoptimizationh modelsh –h Linearh Programmingh –h formulationh –h graphicalh solutionh –
simplexh –h solution.
UNIThII
Transportationhmodelh–hInitialhBasichFeasiblehsolutionsh–hoptimumhsolutionhforhnonh–
hdegeneracyhandhdegeneracyh modelh –h Trans-shipmenth Modelh –h Assignmenth Modelh –
h Travellingh Salesmenh problem.
UNIThIII
NetworkhModelh–hnetworkingh–hCPMh–hcriticalhpathh–hTimehestimatesh–hcriticalhpathh–
hcrashing,h Resourceh levelling,h Resourcesh planning.h Waitingh Lineh Modelh –h Structureh ofh modelh –
h M/M/1h forhinfiniteh population.
UNIThIV
Probabilityh–hdefinitionsh–hadditionhandhmultiplicationhRulesh(onlyhstatements)h–
hsimplehbusinesshapplicationhproblemsh–hprobabilityhdistributionh–hexpectedhvaluehconcepth–
htheoreticalhprobabilityhdistributionsh –h Binomial,h Poisonh andh Normalh –
h Simpleh problemsh appliedh toh business.
UNIThV
Inventoryh Modelsh –h Deterministich –h EOQh –h EOQh withh Priceh Breaksh –h Probabilistich Inventoryh Models
-h Probabilistich EOQh modelh –h Gameh theory-
zeroh sumh games:h Arithmetich andh Graphicalh Method.hSimulationh –h typesh ofh simulationh –
h Monteh Carloh simulationh –h simulationh problems.
Decisionh Theoryh –h Payh offh tablesh –h decisionh criteriah –h decisionh trees.
h h h
MBA First Year
h h h
Paper No. 6h h
School of Distance Education
h h h
Bharathiar University, Coimbatore - 641 046
h h h h h
, Author:h Ph Nh Mishrah &h Sh Jaisankar
Copyrighth ©h 2007,h Bharathiarh University
h AllhRightshReserved
Editedhby:hDr.hSubodhhKesharwani
h Producedh andh Printed
by
EXCELh BOOKSh PRIVATEh LIMITED
A-45,h Naraina,h Phase-I,
Newh Delhi-
110028h for
SCHOOLh OFh DISTANCEh EDUCATION
Bharathiarh University
h Coimbatore-641046
, CONTENTS
PagehNo.
Unith-I
Lessonh1 QuantitativehTechniquesh–hIntroduction 7
Lessonh2 MeasureshofhCentralhTendency 24
Lessonh3 MathematicalhModel 110
Lessonh4 LinearhProgramming:hGraphicalhMethod 119
Lessonh5 LinearhProgramming:hSimplexhMethod 143
Unith-II
Lessonh6 TransportationhModel 167
Lessonh7 AssignmenthModel 209
Unith-III
Lessonh8 NetworkhModel 241
Lessonh9 WaitinghModelh(QueuinghTheory) 272
Unith-IV
Lessonh10 Probability 299
Lessonh11 TheoreticalhProbabilityhDistributions 359
Lessonh12 ProbabilityhDistributionhofhahRandomhVariable 409
Unit-V
Lessonh13 InventoryhModel 449
Lessonh14 GamehTheory 472
Lessonh15 Simulation 495
, QUANTITATIVEhTECHNIQUEShFORhMANAGEMENT
NumberhofhCredithHoursh:h3h(Three)
SubjecthDescription:hThishcoursehpresentshthehvarioushmathematicalhmodels,hnetworking,hprobability,hin
ventoryhmodelshandhsimulationshforhmanagerialhdecisions.
Goals:h Toh enableh theh studentsh toh learnh techniquesh ofh operationsh researchh andh resourcesh managemen
thandhtheirhapplicationhinhdecisionhmakinghinhthehmanagement.
Objectives:h Onh successfulh completionh ofh theh courseh theh studentsh shouldh have:
1. Understoodh theh basich ofh theh quantitativeh techniques.
2. Learnth theh feasibleh solutionh andh optimumh solutionh forh theh resourceh management.
3. Learnth theh timeh estimationh andh criticalh pathh forh project.
4. Learnth abouth theh applicationh ofh probabilityh techniquesh inh theh decisionh making.
5. Learnth theh varioush inventoryh modelsh andh simulationsh inh theh resourceh planningh andh management.
UNIThI
QTh –h Introductionh –h Measuresh ofh Centralh Tendencyh –h Mean,h Median,h Mode.
MathematicalhModelsh–hdeterministichandhprobabilistich–hsimplehbusinesshexamplesh–
h ORhandhoptimizationh modelsh –h Linearh Programmingh –h formulationh –h graphicalh solutionh –
simplexh –h solution.
UNIThII
Transportationhmodelh–hInitialhBasichFeasiblehsolutionsh–hoptimumhsolutionhforhnonh–
hdegeneracyhandhdegeneracyh modelh –h Trans-shipmenth Modelh –h Assignmenth Modelh –
h Travellingh Salesmenh problem.
UNIThIII
NetworkhModelh–hnetworkingh–hCPMh–hcriticalhpathh–hTimehestimatesh–hcriticalhpathh–
hcrashing,h Resourceh levelling,h Resourcesh planning.h Waitingh Lineh Modelh –h Structureh ofh modelh –
h M/M/1h forhinfiniteh population.
UNIThIV
Probabilityh–hdefinitionsh–hadditionhandhmultiplicationhRulesh(onlyhstatements)h–
hsimplehbusinesshapplicationhproblemsh–hprobabilityhdistributionh–hexpectedhvaluehconcepth–
htheoreticalhprobabilityhdistributionsh –h Binomial,h Poisonh andh Normalh –
h Simpleh problemsh appliedh toh business.
UNIThV
Inventoryh Modelsh –h Deterministich –h EOQh –h EOQh withh Priceh Breaksh –h Probabilistich Inventoryh Models
-h Probabilistich EOQh modelh –h Gameh theory-
zeroh sumh games:h Arithmetich andh Graphicalh Method.hSimulationh –h typesh ofh simulationh –
h Monteh Carloh simulationh –h simulationh problems.
Decisionh Theoryh –h Payh offh tablesh –h decisionh criteriah –h decisionh trees.
