MBA: MEC 605-Managerial Economics
Theory of Production
1. Given the production function Q = 10L-0.5L2+24K-K2, determine the optimal
quantity of each input when prices are PL=40, PK=80 and the price of output is 10.
2. Steel can be produced usin
Year 3 -6
30% of sales
Terminal Value of InvestmentRM 5,000
10% of initial investment
By Manjeet Singh
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Project Planning a Step by Step Guide
By Duncan Haughey, PMP
The key to a successful project is in the planning. Creating a project plan is
the first thing you should do when undertaking any kind of project.
Often project planning is ignored in favour of
MBA : MEC 605 Managerial Economics
Value of the firm
1. The owner of a firm expects to make a profit of $100 for each of the next two years and be
able to sell the firm at the end of the second year for $800. The owner of the firm believes
PACKAGING FOR SHIPMENT
Definition of shipping
It is the preparation of goods for delivery to the
This occurs once the business contract is secured
between buyer and seller.
Meaning, the buyer has sent a purchase order to
DELIVERY OF THE
Meaning of Delivery
Delivery means the voluntary transfer of
possession from one person to another.
The goods are normally delivered to the
buyer when he, or his agent, acquires
custody of them or
CONTRACT IN PROCUREMENT
An agreement with specific terms between
two or more persons or entities in which there
is a promise to do something in return for a
valuable benefit known as consideration.
Since the law of contracts is at t
Cost Saving - Opportunities in Procurement
Given the large percentage of the firms expenses
that purchasing spends, procurement must
manage and reduce costs.
Procurement can use a number of methods to
Introduction: The ENRON Scandal
The Enron scandal, revealed in October 2001,
eventually led to the bankruptcy of the Enron
Corporation, an American energy company based in
In addition to be
ORGANIZATION FOR EFFECTIVE
The industrial procurement function can best
be made effective if all purchasing is
channelized and centralized through one
function (or department) procurement (or
All vendor inq
PROCUREMENTS SUPPLIER RATING
Many factors influence the choice of which
supplier to buy from.
One can use a cost-ratio plan for numerically
The plan attempts to attach a number to
Procurement Management deals with all the
activities related to the purchase of goods and
services from external suppliers and the
Normal people buy
Q1. Consider the following product structure.
If the demand for product A is 50 units, how many units of component E will be
Q2. Consider the following product structure.
If the demand for product A is 50