DESCRIPTION OF COURSES
AG ECON 632 QUANTITATIVE ANALYSIS FOR MARKETING AND BUSINESS DECISIONS (2L+1P) I
The main objective of this course is to familiarise students with the application of quantitative techniques to decision making in business and marketing.
Decision theory applications in managerial decisions: Decision making under risk, uncertainty and perfect information situations; Decision criteria: Maximax, maximin, minimax, regret, Laplace criteria; Decision Trees.
Optimization and allocation problems: Assignment problems; transportation problems; media selection problem; channel selection problem; product line selection problem; blending and product mix problems; machine allocation problems. Other competitive strategy related problems.
Waiting line models: Facility planning problems at market yards; service facility problems; customer servicing problems in retail and service industry.
Network models: PERT/CPM. Problems of new product introduction; planning and management of projects related to facilities development; production; processing.
Competitive Strategy Models: Inventory control models for managing production and marketing functions; Markov chain models applied to problems of brand switching, market selection, market shares, etc.; Game theory applications in situations involving conflicts or cooperation
Structuring and solving decision trees for optimal decisions. Using different criteria for arriving at optimal decions under different situations. Formulating and solving transportation type problems; handling unbalanced problems and situations of degeneracy. Assignment problems as a special type of transportation problem. Solving deterministic and probabilistic queuing models Developing network (PERT/CPM) diagrams and determining the critical path. Crashing of projects; PERT cost problems. Determining economic order quantity, reorder levels and robustness of EOQ model; EOQ models under situations of price breaks, outages and planned shortages. Markov Chains: Estimating transition probabilities, predicting future scenarios and estimating steady state probabilities. Game theory: Two person zero sum games; determining saddle points; problems where no saddle point exists.