20 : Theory of Production and Cost
1
Recap from last Session
Contribution Analysis
Learning Curve
Prof. Trupti Mishra, School of Management, IIT Bombay
Session Outline
Application of Cost Analysis
Cost Function: Empirical Determination
Economies of Scale
15 : Theory of Production and Cost
1
Recap from last session
Defining Input, Output, Production
Production function
Short Run Production Function
Law of Diminishing Return
Prof. Trupti Mishra, School of Management, IIT Bombay
Session Outline
Long Run Prod
3 : Introduction to Managerial Economics
1
Session Outline
1. Marginal and Incremental analysis
2. Model of an economy
3. Basic Tools of Economic Analysis and Optimization
Techniques
Prof. Trupti Mishra, School of Management, IIT Bombay
2
4. Marginal Anal
11 : Theory of Demand
1
Session Outline
Consumer preferences Assumptions
Utility analysis
Indifference curve, budget line and consumer
equilibrium
Prof. Trupti Mishra, School of Management, IIT Bombay
The Consumers Optimization Problem
Individual consumpt
12 : Theory of Demand
1
Recap from last Session
Consumer Behaviour - Assumptions
Relationship between Total and Marginal Utility
Law of Diminishing Marginal Utility
Indifference Curve Analysis
Prof. Trupti Mishra, School of Management, IIT Bombay
Session
5:Basic Tools of Economic Analysis
and Optimization Techniques
1
Session Outline
Basic Tools of Economic Analysis and Optimization Techniques
Derivatives of various functions
Optimization techniques
Constrained optimization
Prof. Trupti Mishra, School of
Cost Structure
Particular
Raw Material
Power and fuel
Employee Cost
other manufacturing
Admin Expenses
selling and distriution
miscellaneous
Assumptions
Sales Units
Sales price
Cost of raw material
Other expenses cost
power and fuel
Employee Cost
deprecia
STATISTICAL METHODS
PROBABILITY
1
Probability
Ex perim ent Any process of observation or
measurement.
Outcom e The result one obtains from an
experiment.
Sam ple Space () The set of all possible
outcomes of an experiment.
Event A subset of the sample spac
Sampling Distributions
Sampling Distribution
Statistic : Any quantity whose value can
be calculated from sample data.
The probability distribution of a sample
statistic is the sampling distribution of
that statistic.
Statistical Methods
Usha A. Kumar, IIT
Practice Problems I
The following problems are from the prescribed text. Use SAS to solve these problems.
1. Problem No. 23, Page No. 54
2. Problem No. 27, Page No. 121
3. Problem No. 52, Page No. 134
A (Rs.)
Direct Materials
Direct Labour
Variable Overheads
VC
Selling Price
Contribution
Profit
Monthly Fixed expenses
July (sales)
August (sales)
Total Sales
July
Sales
Revenue
TVC
Contribution
Profit
PV Ratio
BEP
BEP UNITS
B (Rs.)
C (Rs.)
8
8
9
25
36
11
Ganesh Ltd
Contribution pu
A
B
SP
Les: VC pu
DM
DL
V OH
VC PU
Contr pu
PV Ratio
C
36
54
58
8
8
9
25
11
0.306
14
8
20
42
12
0.222
20
20
14
54
4
0.069
July
A
SP
SALES
Contr pu
No of units
Total Contr
Less: FC
B
36
720000
11
20000
220000
C
54
1080000
12
2000
STATISTICAL METHODS
Descriptive Measures
MEASURES OF CENTRAL
TENDENCY
Prof. R.A. Fisher:
The inherent inability of the human mind to
grasp in its entirety a large body of numerical
data compels us to seek relatively few constants
that will adequately desc
STATISTICAL METHODS
INTRODUCTION
STATISTICS
Statistics is the body of theory and methodology
employed in analyzing and using numerical evidence
to choose one among several alternative decisions
or actions when not all relevant facts are known.
Enables us
Cost Structure
Particular
Raw Material
Power and fuel
Employee Cost
other manufacturing
Admin Expenses
selling and distriution
miscellaneous
Assumptions
Sales Units
Sales price
Cost of raw material
Other expenses cost
power and fuel
Employee Cost
deprecia
Practice Problems II
The following problems are from the prescribed text.
1. Problem No. 56, Page No. 211
2. Problem No. 74, Page No. 263
3. Problem No. 49, Page No. 337
Indian Pharma industry new trends.
Patanjali Ayurved Limited is an Indian FMCG company. Manufacturing units and headquarters
are located in the industrial area of Haridwar while the registered office is located at Delhi. The
company manufactures mineral a
MARGINAL COSTING, CVP, BEP
Q.1 Ganesh Ltd is selling three brands of its products in the brand names A, B and C. The details
regarding unit cost and selling prices are as under:
Direct Materials
Direct Labour
Variable Overheads
Selling Price
A (Rs.)
8
8
9
Operations Management II
Dr. Indrajit Mukherjee
A Holistic View of Planning in Industry
Marketplace
and
demand
Demand
Demand
forecasts
Product
decisions
Research
and
technology
Capacity
Process
planning and
capacity
decisions
Workforce
Aggregate
plan for
Material Requirement Planning (MRP)
Lecture Slides by Indrajit
SJMSOM
Dependent and independent demand
Dependent demand
e.g. input tyre store in car plant
Demand for tyres is governed
by the number of cars planned
to be made
Inependent demand
e.g. tyre fi
Master Production Scheduling
A Balance between
Supply and Demand at Product Level
Lecture Slides by Indrajit SJMSOM
Aggregate Plan to Master Schedule
Aggregate
Planning
Disaggregation
Master
Production
Schedule
Disaggregating The Aggregate Plan
Aggregate
Introduction to Operations
Management (OM)
Outline
n
n
n
n
n
n
Why Study Operations Management?
The Heritage of Operations Management
What is Operations Function?
What is Operations Management?
What Operations Managers Do?
Case
Why Study Operations Manage
Module 1: Introduction to
Operations Strategy
Learning objec-ves
A basic understanding on strategy
A couple of frameworks to analyse/design
firms operations strategy
Competitive dimensions of operations, which
allow such design
Integrate these conc
CHAPTE
R
8
Economic Growth II:
Technology, Empirics, and
Policy
In this chapter, you will
learn
how to incorporate technological progress in the
Solow model
about policies to promote growth
about growth empirics: confronting the theory
with facts
two
CHAPTE
R
9
Introduction to Economic
Fluctuations
University of Wisconsin
Charles Engel
In this chapter, you will
learn
facts about the business cycle
how the short run differs from the long run
an introduction to aggregate demand
an introduction to ag
1
Aggregate
Demand
I:
0
Building the IS -LM Model
CHAPTE
R
University of Wisconsin
Charles Engel
In this chapter, you will
learn
the IS curve, and its relation to
the Keynesian cross
the loanable funds model
the LM curve, and its relation to
the theo
CHAPTE
R
7
Economic Growth I:
Capital Accumulation and
Population Growth
Why growth matters
Anything that effects the long-run rate of economic
growth even by a tiny amount will have huge
effects on living standards in the long run.
percentage increase i
PHOTO VOICE
SECTION A
Session 1
Show intent while you speak
When you are communicating with another person it is important that your body language
and the gestures you make should affect the listener in a positive way. It should also display
your intent/p