XXXXX L T P C
QUANTITATIVE TECHNIQUES FOR DECISION MAKING
(Sub Code) 3 1 0 4
COURSE OBJECTIVES
To understand the application of linear programming in business decision-making and
solve problems using graphical and simplex methods.
To apply transportation and assignment models for effective logistics and resource
allocation.
To examine project management using network techniques like CPM and PERT to
manage time and resources efficiently.
To interpret decision-making problems using game theory concepts and develop optimal
strategies.
To formulate inventory and replacement policies for minimizing costs and maximizing
efficiency.
To utilize sequencing techniques to optimize operations in manufacturing and service
systems.
UNIT – I LINEAR PROGRAMMING
Applications: Linear programming is widely used in manufacturing and resource allocation to
optimize production costs or profits.
Introduction to Operations Research – Applications of quantitative techniques in managerial
decision-making – Linear Programming: Formulation, Graphical Method, and Simplex Method.
UNIT – II TRANSPORTATION AND ASSIGNMENT
Applications: Transportation and assignment models optimize logistics and resource allocation
to minimize cost and time.
Finding an Initial Feasible Solutions using North - West Corner Method - Least Cost Method and
Vogel’s Approximation Method - Variations in Transportation Problem. Assignment Problems –
Hungarian Method – Variations of the Assignment Problem.
UNIT – III NETWORK TECHNIQUES
Applications: Project management uses CPM and PERT to plan, schedule, and control complex
projects in construction, IT, and R&D.
Introduction- Phases of project management, Guidelines for network construction-Critical Path
Method-CPM float calculations-PERT analysis.
UNIT – IV GAME THEORY
Applications: Game theory assists in strategic decision-making in competitive environments like
pricing, bidding, and market entry.
Definition of Game - Payoff and Two Person Zero Sum Game – Maximin Principle - Minimax
Principle - Saddle Point - 2 X 2 Games without Saddle Point – The Rules of Dominance -
Graphical Method for 2 x n or m x 2 Games.
UNIT – V INVENTORY AND REPLACEMENT MODELS
Applications: Inventory models help businesses manage stock efficiently, reduce holding costs,
and avoid stock outs. Replacement models assist in determining optimal replacement time for
equipment and assets to reduce downtime and maintenance costs.
Inventory Models – EOQ and EBQ Models (With and Without Shortages), Quantity Discount
Models - Replacement Models-Individuals Replacement Models (With and without time value of
money) – Group Replacement Model.
UNIT – VI BUSINESS STATISTICS AND CURRENT TRENDS
Job Sequencing algorithm (Johnson') - n jobs through 2 machines, n jobs through 3 machines and
n jobs through m machines - Recent Optimization Tools.(R)
COURSE OUTCOMES
At the end of this course, the students would be able to
CO’s Course Outcome Cognitive
Level
CO1 Formulate and solve real-world problems using linear programming
Apply
models and appropriate solution methods.
CO2 Apply optimization techniques like transportation, assignment, and
Apply
traveling salesman algorithms to minimize cost and time.
CO3 Develop and analyze project networks using CPM and PERT to
Analyze
manage project timelines and resources.
CO4 Evaluate and devise game strategies under competitive scenarios using
Evaluate
game theory principles.
CO5 Construct inventory and replacement models for decision-making in
Analyze
supply chain and asset management.
CO6 Apply sequencing algorithms to optimize job scheduling and enhance
Apply
operational productivity.
TEXT BOOKS:
1. Vohra N.D., “Quantitative Techniques in Management”, 6th Edition, McGraw Hill
Education, New Delhi, 2022.
2. J K Sharma, “Operations Research – Theory & Applications”, Macmillan Publishers
India Ltd., 6th edition, (2017).
REFERENCES:
1. Paneerselvam R., Operations Research, PHI Learning Pvt. Ltd.,3rd Edition, 2023
2. Hamdy A. Taha , “Operations Research An Introduction”;, 10th Edition, Pearson
Education, Noida, 2018.
3. G. Srinivasan, Operations Research: Principles and Applications, 3rd Edition, MacMillan
India, 2019.
