It isdescriptiveinnatureandnotan optimizingmodel

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Unformatted text preview: Probabilistic Inventory Model Basic EOQ Model Basic EOQ Model Slope=0 Minimu 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 PERT 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 Crashing is shortening the activity duration by employing more resources. cost slope = Cc – Cn/ Tn ­ Tc...
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This note was uploaded on 02/13/2014 for the course QNM 225 taught by Professor Karenbergin during the Spring '13 term at Seneca.

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