Operations research For business Decisions

COURSE CODE COURSE TITLE L T P C

MBA 502 OPERATION RESEARCH FOR BUSINESS


DECISIONS 3 0 0 3


COURSE OUTCOMES:

On completion of the course, the students will be able to:

CO1: Understanding the fundamental concepts and techniques of operations research and quantitative

methods relevant to business decision-making.

CO2: Applying linear programming, transportation, and assignment models to solve optimization problems

in various business scenarios.

CO3: Applying dynamic programming and integer linear programming techniques to address complex

sequential and constrained decision problems.

CO4: Evaluating waiting line and replacement models to improve operational efficiency and asset

management.

COURSE CONTENT:

UNIT I: QUANTITATIVE TECHNIQUES AND OPERATIONS RESEARCH [9

Sessions]

Quantitative Techniques and Operations Research: Meaning, Scope of Quantitative Techniques and

Operations Research in Management, Advantages and Limitations of Quantitative Techniques, OR Models

Linear Programming: Meaning of Linear Programming, General Mathematical Formulation of LPP,

Graphical Analysis, Simplex Method, Big M-Method, Duality and Limitations of LPP.

UNIT II: TRANSPORTATION MODEL [9 Sessions]

Transportation Model: Mathematical Formulation, Initial Basic Feasible Solution, North West Corner

Method (NWCM), Vogel's Approximation Method, Optimization (Minimization and Maximization) Using

Modified Distribution Method and Stepping Stone Method. Assignment Problem: Assignment Model as a

Particular Case of Transportation Model, Formulation of Assignment Problems, Solution of Assignment

Problems Using Hungarian Method (Minimization and Maximization) Route Allocation.

UNIT III: JOB SEQUENCING [9

Sessions]

Job Sequencing: Assumptions, Solution of sequencing problems, Processing n jobs through two machines.

Processing n jobs through three machines. Processing two jobs through n-machines, Processing n-jobs

through n-machines.

UNIT IV: WAITING LINE & REPLACEMENT MODEL [9 Sessions]

Waiting Line Model: Introduction, Scope in Management Decisions, Single Server Queuing Models,


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Replacement Model: Introduction Scope in Management, Single Equipment Replacement Model and

Group Replacement.

UNIT V: GAME THEORY & MARKOV CHAIN ANALYSIS [9 Sessions]

Game Theory and Markov Chain Analysis: Introduction to games, Maxim in and Mini-max Principles,

Pure and Mixed Strategies, Solution of Games Using-Algebraic and Graphical Methods, Computation of

Sequential Probability of States for different Periods, Steady State Probability of States and Application of

Markov Chain, Simulation and Computer Solutions-Introduction to simulation, Monte Carlo technique and

its applications

SUGGESTED READINGS:

1. V.K. Kapoor, Operations Research, S Chand Publication

2. H.M. Wagner, Principles of Operations Research with Application to Managerial Decisions,

PHI Learning, 2nd edt.

3. Chawla, Operation Research, Kalyani Publication Ludhiana

BUSINESS LEGISLATION

COURSE CONTENT:

UNIT I: QUANTITATIVE TECHNIQUES AND OPERATIONS RESEARCH                        [9 Sessions]

Quantitative Techniques and Operations Research: Meaning, Scope of Quantitative Techniques and Operations Research in Management, Advantages and Limitations of Quantitative Techniques, OR Models Linear Programming: Meaning of Linear Programming, General Mathematical Formulation of LPP, Graphical Analysis, Simplex Method, Big M-Method, Duality  and Limitations of LPP.

 

UNIT II: TRANSPORTATION MODEL                                                                                  [9 Sessions]

Transportation Model: Mathematical Formulation, Initial Basic Feasible Solution, North West Corner Method (NWCM), Vogel's Approximation Method, Optimization (Minimization and Maximization) Using Modified Distribution Method and Stepping Stone Method. Assignment Problem: Assignment Model as a Particular Case of Transportation Model, Formulation of Assignment Problems, Solution of Assignment Problems Using Hungarian Method (Minimization and Maximization) Route Allocation.

 

UNIT III: JOB SEQUENCING                                                                                                    [9 Sessions]
Job Sequencing: Assumptions, Solution of sequencing problems, Processing n jobs through two machines. Processing n jobs through three machines. Processing two jobs through n-machines, Processing n-jobs through n-machines.

 

UNIT IV: WAITING LINE & REPLACEMENT MODEL                                                      [9 Sessions]

Waiting Line Model: Introduction, Scope in Management Decisions, Single Server Queuing Models, Replacement Model: Introduction Scope in Management, Single Equipment Replacement Model and Group Replacement.

 

UNIT V: GAME THEORY & MARKOV CHAIN ANALYSIS                                              [9 Sessions]    

Game Theory and Markov Chain Analysis: Introduction to games, Maxim in and Mini-max Principles, Pure and Mixed Strategies, Solution of Games Using-Algebraic and Graphical Methods, Computation of Sequential Probability of States for different Periods, Steady State Probability of States and Application of Markov Chain, Simulation and Computer Solutions-Introduction to simulation, Monte Carlo technique and its applications

 

SUGGESTED READINGS:

1.    V.K. Kapoor, Operations Research, S Chand Publication

2.    H.M. Wagner, Principles of Operations Research with Application to Managerial Decisions, PHI Learning, 2nd edt.

3.    Chawla, Operation Research, Kalyani Publication Ludhiana


 


FINANCIAL MANAGEMENT

COURSE OUTCOMES

CO1. Understanding techniques to project financial statements for forecasting long-term financial needs.

CO2. Describing the role of short-term financial management, and the key strategies and techniques used to manage cash, marketable securities, accounts receivable and inventory.

CO3. Evaluating relevant cash flows for capital budgeting projects and apply various methods to analyze projects.

CO4. Applying future value and present value concepts to single sums, mixed streams, and annuities.

COURSE CONTENTS

UNIT I: INTRODUCTION

Introduction- Financial Concepts and Nature, Scope, Function and Objectives of Financial Management. Understanding the concepts of Value Maximization and Profit Maximization, Basic Financial Decisions: Investment, Financing and Dividend Decisions Sources of Finance-Understanding about short term and long-term sources of funds and their characteristics

UNIT II: FINANCIAL STATEMENT ANALYSIS

Understanding the Parameters of health of Business: Liquidity, Profitability, Solvency and Efficiency. Understanding and computation of various tools of financial analysis-- such as Percentile Financial Statement and Ratios used in managerial decisions through analysis of financial statement of companies. Statement of Changes in Financial Position-Concepts of Funds, and its Sources and Uses. Preparing and analyzing Fund flow statement and Cash Flow Statement for financial Decision

UNIT III: LEVERAGE ANALYSIS 

Leverage Analysis-Developing the Concept of Leverage in Finance. Computation and inferences of Degree of Operating Leverage, Financial Leverage and Combined Leverage. CVP analysis, PV Chart and Break-Even Analysis for business decisions. Importance of Margin of Safety for decision making. Operational Budgeting-Understanding the importance and process of Budgeting, Budget: Programme Budget, Fixed budget, Flexible Budget, Incremental Budget and responsibility Budgets. Concept and utility of Zero-based Budgeting, Rolling budget, Cash Budget and operating budget.

UNIT IV: COST OF CAPITAL AND CAPITAL STRUCTURE DECISION

Cost of Capital and Capital Structure Decision-Understanding the Concept of Cost of Capital, Computation of cost of Equity, Debt and Quasi Capital. Weighted Average Cost of Capital and Marginal Cost of Capital. Capital Structure and its Theories such as MM theory of Capital Structure. Investment Decisions-Concept and Computation of Time Value of Money, DCF and Non DCF methods of Investment Appraisal. Project selection on the basis of Investment Decisions. Evaluating Investment Proposals for Decision Making, Capital Rationing

UNIT V: WORKING CAPITAL 

Understanding Working Capital-Concepts, components, Determinants and need of Working Capital. Computation of Working Capital for a Company Dividend Decision-Practices and Forms of Dividend in a Company, Residual Theory of Dividend. MM Model of Irrelevancy of Dividend