Presentation Relations Hi Op of Manage Rail Economics With Other Disciplines (3)

8/8/2019 Presentation Relations Hi Op of Manage Rail Economics With Other Disciplines (3)

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RELATIONSHIOP OF MANAGERAIL ECONOMICS

WITH OTHER DISCIPLINES

Group:- MBA(FA)Vivek Kothari

Pankaj Sawasiya

Nitesh Kumar Kirar



Managerial Economics:-

Managerial Economics uses the logic of Economics,

Mathematics and Statistics to provide effective ways of

thinking about business decision problems.



Management Decision Problems

Product Price and Output

Make or Buy

Production Technique

Advertising Media and Intensity

Investment and Financing

Economics concepts

Theory of the Firm

Theory of Consumer Behavior(Demand)

Production and Cost theory(Supply) Theory of Pricing

Theory of Market Structure and

Competition theory

Decision Sciences

Tools and Techniques of Analysis

Statistical Analysis Operation Research

Accounting

Managerial Economic

Use of Economic Concepts and

Decision Science Methodology to Solve

Managerial Decision Problems

Optimal Solutions to ManagerialDecision Problems



Relationship with Statistics

What does Statistics mean?

Statistics is a technique/process in which data are collected,

organized, and analyzed and then this analyzed data is used

to come to a conclusion.

Collecting Data

Organizing Data

Data in Array

Form

Data in

Frequency

Distribution

Analyzing dataConclusion OR



How Statistics is used in decision making?

Numerical Analysis

Probability

Forecasting



Numerical Analysis:

Numerical Analysis is a technique in which with the helpof numerical data, we try to come to a conclusion.

Probability:

Probability is a way of measuring of how likely it is that

some event will occur or will not occur.

Forecasting:The process of analyzing current and historical data to

determine future trends is known as Forecasting.



Process of Forecasting:-

Identification of Problem

Analyzing the

data

Theoretical

considerations

Modeling

Methodology

Forecasting

Qualitative

Forecasting

Models

Quantitative

Forecasting

Models

Forecasting

Verification



Relationship with Operation research

What does OR mean?

Operation Research is an analytical method of

problem-solving and decision making that is useful in the

management of organization.



How OR is helpful in decision making?

Linear Programming Model

Transportation Model

Assignment Model Game theory



Linear Programming Model:

Linear Programming Model is a mathematical method for

determining way to achieve the best outcome ( maximum profit

or lowest cost ).

Products M1 M2 Profit /unit

A 1 min 2 min 3

B 1 min 1 min 4

Total time 450 min 600 min

Machines



Transportation Mode:

Transportation Model is used to minimize the cost of distribution a product from a number of sources to a number

of destinations.

W1 W2 W3 Supply

P1 7 6 9 20

P2 5 7 3 28

P3 4 5 8 17

Demand 21 25 19 65

Warehouse

Plant



Assignment Model:

Assignment Model is used to assign anumber of jobs to the equal number of person.

A B C

1 120 min 100 min 80 min

2 80 min 90 min 110 min

3 110 min 140 min 120 min

Programmes

Programmers



Game theory:

Game theory is a type of decision theory in which

one¶s choice of action is determined after taking into account

all possible alternatives available to an opponent playing the

same game.

player II

j=1 j=2 j=3

player Ii= 1 -1 2 -2

i=2 6 4 -6

The Payoff Matrix



States of Nature (Events)

GrowthMedium

Growth

No

Change

Low

G MG N L

Actions

Bonds 12% 8% 7% 3%

Stocks 15% 9% 5% -2%

Deposit 7% 7% 7% 7%

How does Game Theory use in Decision-Making?



Relationship with Accounting

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Presentation Relations Hi Op of Manage Rail Economics With Other Disciplines (3)