WAGAN MARK CITIEL
CASE STUDY: MOUNTAIN WEST HEALTH PLANS INC.
Facts of the Case
Martin Quinn, SVP for service and operations for Health Insurance Company is looking for
opportunity to control costs of labor intensive department.
Decrease in value of physical properties
with passage of time and use
Accounting concept establishing annual
deduction against before-tax income
- to reflect effect of time and use on assets
value in firms financial statements
Decision and Risk Analysis
Syed M. Ahmed, Ph.D.
The Linear Programming Model
Examples of Linear Programming Problems
Developing Linear Programming Models
Graphical Solution to LP Problems
PURPOSE OF ORGANIZING
The word organizing stems from the word organism
which simply means to create a structure with fully
integrated parts that are related to each other and is
governed by their relationships to the whole. The results
of combining are di
deals with selecting missions and
objectives and the actions to achieve them. It
requires decision-making, that is, choosing from
among alternative future courses of action.
provide a rational approach to achieving
it is the process of designing and
maintaining an environment in which
individuals, working together in groups,
is unifying and coordinating activity which
Eight Steps to Forecasting
Determine the use of the forecast
Select the items or quantities that are to be forecasted.
Determine the time horizon of the forecast.
What objective are we trying to obtain?
Short time horizon 1 to 30 days
1.2 Materials Management
1.3 Inventory Problem Classifications
1.4 Properties of Inventory
1.5 Inventory Costs
1.6 Inventory Model
Most of the organizations use, transform, di
Is the process by which a manager communicates
with and influences other members of the
organization in the pursuit of company objectives
to achieve the desirable ends.
It is the human aspect of managing through which
Inventory: Problem Solving
EOQ: Example 1
The ABC Semi Conductor Company purchase 40,000
units of mother board each year at a cost of $30.00
per unit. The ordering cost is $10.00 per order, and
the annual holding cost is estimated at 15% of the
ENGINEERING ECONOMY is a discipline
concerned with the systematic evaluation of the costs
and benefits of the proposed business projects and
ventures. Its objective is to choose which among the
alternative course of action will give the maximu
8. Suppose we know that p=1,000 D/5, where p
= price in dollars and D = annual demand. The
total cost per year can be approximated by
$1,000 + 2D2 .
Determine the value of D that maximizes profit.
Show that in part(a) profit has been maximized
UNIFORM GRADIENT SERIES OF CASH FLOWS
Arithmetic gradient series is a series of payments
in which each payment is greater than or less
than previous one by a constant amount G
Determine the equivalent present worth, future
INTEREST is the amount of money paid for the use of borrowed capital or
the income produced by money, which has been loaned.
PRINCIPAL is the amount of money used on which interest is charge.
SIMPLE INTEREST - is the interest to be paid which is directly