This preview shows page 1. Sign up to view the full content.
Unformatted text preview: Probabilistic Inventory Model Basic EOQ Model
Basic EOQ Model
m total cost Total cost Carrying cost Ordering cost
Optimal order qty SIMULATION Simulation
Simulation It involves developing a model of some real phenomenon and then performing experiments on the model evolved. It is descriptive in nature and not an optimizing model. Process
Process Definition of the problem
Construction of an appropriate model
Experimentation with the model
Evaluation of the results of simulation NETWORK ANALYSIS
CPM Network Analysis / Project Management A project is a series of activities directed to the accomplishment of a desired objective. PERT
CPM CPMCritical Path Method
CPMCritical Path Method Activities are shown as a network of precedence relationship using Activity
OnArrow (AOA) network construction.
There is single stimate of activity time
Deterministic activity time Project Evaluation & Project Evaluation & Review Technique Activities are shown as a network of precedence relationships using AOA network construction.
Multiple time estimates
Probabilistic activity time Crashing
Crashing is shortening the activity duration by employing more resources. cost slope = Cc – Cn/ Tn Tc...
View Full Document
This note was uploaded on 02/13/2014 for the course QNM 225 taught by Professor Karenbergin during the Spring '13 term at Seneca.
- Spring '13