JAWAHARLAL NEHRU TECHNOLOGICAL UNIVERSITY HYDERABAD

22MBA12: QUANTITATIVE ANALYSIS FOR BUSINESS DECISIONS

MBA II Semester (R22)

Course Objectives:

To impart knowledge of basic tools of Operations research in solving the management problems using mathematical approaches for decision making.
To teach the methods of solving Linear Programming Problems.
To impart knowledge on assignment model and transportation problem.
To impart knowledge on the significance of decision tree and Network analysis.
To highlight the importance of Queuing Theory.

Course Outcomes

Students will be able to:

Understand the origin and application of operations research.
Learn about the Formulation of Linear Programming Problem for different areas.
appreciate the significance of variations of assignment problem, methods for finding Initial feasible solution.
Learn the aspects of Decision Theory and Network Analysis
Gain insights of the theoretical principles and practical applications of different queuing models.

UNIT - I: Introduction to Operations Research

Nature and Scope of Operations Research: Origins

of OR, Applications of OR in different Managerial Areas, Problem Solving and Decision-making, Quantitative and Qualitative Analysis. Defining a Model, Types of Models, Process for Developing an Operations Research Model, Practices, Opportunities and Shortcomings of using an OR Model.

UNIT - II: Linear Programming Method

Structure of LPP, Assumptions of LPP, Application Areas of

LPP, Guidelines for Formulation of LPP, Formulation of LPP for Different Areas, Solving of LPP by Graphical Method: Extreme Point Method, Simplex Method, Converting Primal LPP to Dual LPP, Limitations of LPP.

UNIT - III: Assignment Model

Algorithm for Solving Assignment Model, Hungarians Method for Solving

Assignment Problem, Variations of Assignment Problem: Multiple Optimal Solutions, Maximization Case in Assignment Problem, Unbalanced Assignment Problem, Travelling Salesman Problem, Simplex Method for Solving Assignment Problem. Transportation Problem: Mathematical Model of Transportation Problem, Methods for Finding Initial Feasible Solution: Northwest Corner Method, Least Cost Method, Vogels Approximation Method, Test of Optimality by Modi Method, Unbalanced Supply and Demand, Degeneracy and its Resolution.

UNIT - IV: Decision Theory

Introduction, Ingredients of Decision Problems. Decision-making under

Uncertainty, Cost of Uncertainty Under Risk, Under Perfect Information, Decision Tree, Construction of Decision Tree. Network Analysis: Network Diagram, PERT, CPM, Critical Path Determination, Project Completion Time, Project Crashing.

UNIT - V: Queuing Theory

Queuing Structure and Basic Component of a Queuing Model, Distributions

in Queuing Model, Different Queuing Models with FCFS, Queue Discipline, Single and Multiple Service Station with Finite and Infinite Population. Game Theory, Suddle Point, Value of the Game.