CostManagement
PGP:201718Session 1
Introduction
Prof. Arpita Ghosh
PlanningandControlCycle
Formulating plans
(Planning - Budgeting)
Comparing actual
to planned
performance
(Controlling)
Decision
Making
Begin
Implementing
plans
(Directing and
Motivating)
M
Rules for Order of Operations Simplify.
1. Do all the calculations within parentheses before (3 - 8) + 2
t' t 'd . . .
opera rons ou SI e Followmg the rules for order of operatlons, the rst step
2' Evaluate all exponential expressions. is to do all the ca
Simplify.
82+162+42
To simplify an expression, follow the rules for order of operations.
Start with Rule 1: Do all the calculations Within parentheses before operations outside.
There are no parentheses in the given expression, so we proceed to Rule 2.
Ru
Rules for Order of Operations Simplify.
1. Do all the calculations within parentheses before (3 - 8) + 2
t' t 'd . . .
opera rons ou SI e Followmg the rules for order of operatlons, the rst step
2' Evaluate all exponential expressions. is to do all the ca
Discussion:
The food of Europe and America emerged from the same background. The transformation
of American traditional food happened because of the immigrants of Europe country. Together,
this would form into an American Style of food and drink consumpti
Express l,000,000,000,000 as a power of 10. There are 2 zeros in 100.
100 = 10 - 10
= 102
There are 3 zeros in 1000.
1000=10-10-10
= 103
There are 12 zeros in 1,000,000,000,000.
1,000,000,000,000 = 1012
1,000,000,000,000 is the product of 12 factors of 10
The general solution to the differential equation is identical to the previous example and so
we have,
Applying the first boundary condition gives us,
Recall that we are assuming that
second boundary condition gives us,
here and so this will only be zero
Dharwar Prime Drilling Society
Without DPDS
Apply for loan
Bank
Receive loan
Start digging
Farmer
Govt.
Without DPDS
Apply for loan
Bank
Receive loan
Repay liability
Stop digging
Apply for subsidy
Govt.
Farmer
Receive subsidy
Without DPDS
Apply for loan
B
Applications of mathematical programming
Decision Analysis
2016 17 Session
Allocating trainees to departments
ASSEMBLY LINE
MACHINE SHOP
SYSTEMS
BACK OFFICE
ASSEMBLY LINE 1
ASSEMBLY LINE 2
MACHINE SHOP 1
MACHINE SHOP 2
SYSTEMS
BACK OFFICE
Assignment probl
The FACET problem
Decision Analysis
2016 17 Session
The nature of the problem
New product (which is not an
extension of an existing
product).
Decision to stock FACETs have
already been taken. The
question is how many?
Stocking in multiples of 100
piece
Sarah Changs Dilemma
Decision Analysis
2016 17 Session
What is a solution to the problem?
Does Sarah invest $200K in R&D or not?
If Sarah has the old technology only, should she bid or not?
If Sarah has the new technology and old technology, what shoul
Kowloon Development Co. Ltd.
Decision Analysis
2016 17 Session
Defining a solution to the problem
Do we buy the plot or put money in the bank?
Do we apply for increasing development ratio if we buy it?
Do we construct on the plot if we buy it?
Unreason
Answers to numericals among Problems at the end of Chapter 1:
1.1
Part c: Mix is 6399 liters Regular and 1528 liters premium
Part d: Mix is 0 liters Regular and 6182 liters premium
Comparison: In part c, contribution was Rs.1190664 and employees got Rs.44
Using Excel Functions
Rand Function
In Excel, the Rand function is used to return a random number that is greater
than or equal to 0 and less than 1. It returns a new random number each time
your spreadsheet recalculates.
The syntax for the random number
Ambulance Service Problem
Gotham City Ambulance Service
Gotham city is divided into 8 districts, each with a
population (in 1000s) as given in the Table below:
Districts
Population (in 1000s)
1
40
2
30
3
35
4
20
5
15
6
50
7
45
8
60
Gotham City Ambulance
Market
Research
Result
Production Process
Prototype for Phase 1
Phase 1 Market research result
Small Run (Phase 1)
Prototype for Phase 2
Phase 2 Market research result
Small Run (Phase 2)
Commercialization
NPV of Total Production Cost
Product goes to mark
Merton Trucks
Problem formulation - Conceptual
What is Merton deciding?
What constrains Mertons choices?
What options are available at hand?
Sales Manager: Stop manufacturing Model 101.
Controller: Increase Model 101, cut back on Model 102.
Production
Duality Theory
Ankur Sinha, PhD
Production and Quantitative Methods
Indian Institute of Management Ahmedabad
Gujarat India
Resouce Allocation vs Resource Valuation
Until now the problems that we considered were resource
allocation (primal) problems
Corr
Worker Scheduling
Worker scheduling model
A post office requires different numbers of full-time employees
on different days of the week.
Day of Week
Monday
Tuesday
Wednesday
Thursday
Friday
Saturday
Sunday
Min. no. of Workers Required
17
13
15
19
14
16
1
Integer Programming
Introduction
Until now we have looked at linear problems with continuous decision variables
A number of real-world situations involve decision variables that are integers, for
instance
Pure Integer Variables
There are two kinds of air
Conditional inclusion of constraints
Decision Analysis
2016 17 Session
Choosing of options
Suppose you have n projects and must choose at most k of them to pursue. (Each project has a cost,
and you have a budget ) How would you model this decision problem
Entrepreneurship Education:
A Comparative Study of Literature
Shahir Bhatt* and Amola Bhatt*
Entrepreneurship is the process of designing, launching and running a new
business, i.e., a startup company offering a product, process or service.
Entrepreneursh
www.learnwithflip.com
Diagnostic Test Contest - Terms and Conditions
Ensure you attempt the diagnostic test before your certification exam.
The best score in two attempts will be considered.
The gift voucher (FLIP Gift Vouchers) will be provided to the wi
The ethical justification of profit maximization
Methodology:
The fundamental structure of the paper is as follows:
First, It states about the author. Second it considers the
causes and effect of profit maximization. Those who tend
to defend profit maximi