- •Examination questions Managerial decision making
- •Compare structures and unstructured problems. А)Structured problems b) Unstructure problems
- •Describe the phases of the decision making process.
- •Give two examples of the cognitive limitations.
- •Why the decisions are hard? Quote 4 general reasons (groups of reasons).
- •Decision analysis
- •Compare decision making under uncertainty and under risk.
- •Describe the calculation of the posterior probabilities.
- •Describe the expected value of sampling information.
- •Describe the decision tree.
- •Game theory
- •Describe the Principle of Insufficient Reason.
- •10. Describe the Principle of Insufficient Reason.
- •Multiple criteria decision making
- •Describe one method based on pair comparison.
- •Describe the simple additive weighting method.
- •Madm Advanced methods
- •What is the principle of the topsis method?
- •Describe the priam method and the role of standard levels.
- •Describe the ahp method. For which cases it is suitable?
- •Input-output analysis
- •Describe the quadrants in the input-output table.
- •What is the intermediate consumption in the output-input model?
- •What is ebit and where we can find it in the input-output table?
- •What kind of model is input-output model?
- •How and why we calculate the input-output coefficients?
- •Construct the distribution equations. Markov chains
- •Describe Markov chain as a stochastic process.
- •Queuing theory
- •Inventory control
Inventory control
Why the inventory is kept?
- To maintain independence of operations
-To meet variation in product demand
-To allow flexibility in production scheduling
-To provide a safeguard for variation in raw material delivery time
-To take advantage of economic purchase-order size (quantity discount)
Which are the main questions the inventory models answer?
• When to order?
• What quantity?
Which order quantity is optimal-?
is the order quantity that minimizes total inventory holding costs and ordering costs.
List the 3 part of the quantity discount. Under which conditions we should take the discount?
1.reduces purchase price
2.higher inventory costs
3.lower (?) ordering costs
If the benefit is positive…the discount is advantageous
Take it!
If the Qnew⪯Qopt you can buy your optimal quantity and get the discount! No calculations…
Take it!
Describe the just in time inventory model.
The just-in-time concept strives for very low inventory levels, thereby lowering inventory holding costs. However, if the order quantities are lowered below the economic order quantity level, then the ordering costs will increase and the total cost will be higher than optimal. In order to implement the just-in-time concept, it is necessary for the ordering (or setup) cost somehow to be lowered from its earlier value.