SyllabusThe subject will cover the following topics: - Introduction to business decision analysis, types of decisions, decision models, decision making tools, ethical decision making, communicating business decisions.
- Decision analysis, uncertainty and risk, probabilities, payoffs, decision tables, spreadsheet examples.
- Risk analysis and project evaluation, expected monetary value, expected value of perfect information, decision trees, sensitivity analysis.
- Forecasting and computer modelling, forecasting models, time series, exponential smoothing, causal models, multiple regression, adaptive smoothing, computer modelling.
- Inventory decisions, costing methods, charts, valuation decisions, EOQ models.
- Investment decisions, interest, present and future values, annuities, discounted cash flow analysis, net present value, internal rate of return, profitability index.
- Quality management decisions, total quality management, statistical quality control, conformance to specifications, random sampling, hypothesis testing, process testing, continuous improvement, benchmarking.
- Introduction to linear programming, graphical approach, constraints, objective function, cost minimisation, computer spreadsheet techniques.
- Introduction to project management, Critical Path Method (CPM), Program Evaluation and Review Technique (PERT). |
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