QUANTITATIVE TECHNIQUES IN MANAGEMENT - …

1 QUANTITATIVE TECHNIQUESIN MANAGEMENTB ooks by the Same Author Operations Research: Theory and Applications (5th Ed) Operations Research: Problems and Solutions (3rd Ed) Linear Programming: Theory and Applications Discrete Mathematics (3rd Ed) MANAGEMENT of SystemsQUANTITATIVE TECHNIQUESIN MANAGEMENTT hird EditionJ K SharmaProfessor, Amity Bussines SchoolAmity University Uttar Pradesh, Noida(An Imprint of Laxmi Publications Pvt. Ltd.)BANGALORE CHENNAI COCHIN GUWAHATI HYDERABADJALANDHAR KOLKATA LUCKNOW MUMBAI PATNANEW DELHI BOSTON, USAQUANTITATIVE TECHNIQUES IN MANAGEMENTC opyright by the Author / LJ LJ LJ LJ LJ LJ LJ LJ LJ LJ LJ LJ / LJ W / Typeset at ^ d dYd Yh Ed/d d/s d , ^, ISBN Price.

2 ` Limits of Liability/Disclaimer of Warranty: d LJ LJ d LJ LJ / > LJ E LJ LJ LJ d nj t nj t LJ LJ &

3 / t LJ LJ s LJ h^W ' & D D LJ d LJ > d LJ LJ > d W E PUBLISHED ININDIA BY(An Imprint of Laxmi Publications Pvt. Ltd.) 'K> E ,Kh^ Zz ' E: E t >,/ /E / d & d C d d Printed at:& &Chennai &Cochin &' &,LJ &: &Kolkata &> &D &Z BranchesIt gives me great pleasure and satisfaction to present the third edition of the book QUANTITATIVE TECHNIQUES in MANAGEMENT tothe teachers and students of this subject.

4 This edition continues to provide readers an understanding of problem-solving methodsbased on a careful discussion of model formulation, solution procedure and analysis. I hope this easy-to-understand approachwould enable readers to develop the required skills and apply QUANTITATIVE TECHNIQUES to all kinds of decision-making text revision in this edition is extensive and in accordance with the objective of enhancing and strengthening theconceptual as well as practical knowledge of readers about various QUANTITATIVE TECHNIQUES . A large number of new business-oriented solved as well as practice problems have been added, thus creating a bank of problems that give a better representationof the various QUANTITATIVE edition has a completely new look and feel. I hope this revision will facilitate the teaching of QUANTITATIVE techniquesas well as enhance the learning experience for are some of the key changes: The text of almost each chapter has been reorganized and/or rewritten to make explanations more cogent through relevantand interesting examples.

5 This will provide a more meaningful, easier and effective learning experience. Each chapter contains Preview and Learning Objectives to guide the students and help them focus their attention onunderstanding a specific topic under study. Most chapters contain MANAGEMENT Cases to help students understand various business situations and suggestsolutions to managerial issues that are raised while using specific TECHNIQUES . Each chapter contains Concept Quizzes to help students reinforce their understanding of the principles and applicationsof QUANTITATIVE TECHNIQUES . Explanations are well illustrated with numerous interesting and varied business-oriented examples. Conceptual Questions, Self Practice Problems with Hints and Answers are given in each chapter to enable studentsto learn at their own pace.

6 Complete conformity to the latest trends of questions appearing in universities and professional examinations. Referencesto questions set in examinations of various Indian universities have been book is intended to serve as a core textbook for students of BBA, BCA, MBA/PGDBM, BCom, MCom, CA, ICWA andthose who need to understand the basic concepts of QUANTITATIVE TECHNIQUES in MANAGEMENT and apply results directly to real-life business would also prove to be useful for those preparing for IAS, NET, ISI and other competitive (Dr) J K SharmaPreface to the Third EditionThe primary objective in writing this book is to provide the readers the insight into structures and processes that QuantitativeTechniques can offer and the enormous practical utility of its various aim is to explain the concepts and simultaneously to develop in readers an understanding of problem-solving methodsbased upon a careful discussion of model formulation, solution procedures and analysis.

7 To this end, numerous solved business-oriented examples have been presented throughout the text. Unsolved Self Practice Problems with Hints and Answers, andReview Questions have been added in each chapter to strengthen the conceptual as well as practical knowledge of the book is designed to be self-contained and comprises of 20 chapters. The book is intend to serve as a core text primarilyfor students of BBA, BCA, BCom, MCom, MBA/PGDBM, CA, ICWA etc. who need to understand basic concepts of and applyresults directly to real-life business problems. The book also suits the requirements for those preparing for IAS, NET, ISI andother competitive hope that the presentation and sequence of chapters have made the text interesting and lucid. In writing this book I havebenefitted immensely by referring to many books and publications.

8 I express my gratitude to all such authors, publishers andinstitutions; many of them have been listed in the references. If anybody has been left out inadvertently, I seek their express my sincere gratitude to my teachers Prof. Kanti Swarup and Dr S D Sharma for their blessings and inspiration. Iwish to acknowledge my sincere thanks to my students, friends and colleagues, particularly to Prof M P Gupta and Prof A S Naragfor their valuable suggestions and encouragement during the preparation of this text. I would like to thank the publishers forthe efficient and thoroughly professional way in which the whole project was managed. In the end let me thank my wife andchildren for the unflagging support and encouragement they gave me while I worked on this suggestions to improve the book in contents or in style are always welcome and will be appreciated and K SharmaPreface to the First EditionI express my heartfelt gratitude to Founder President Dr.

9 Ashok K Chauhan and Chancellor Mr. Atul K Chauhan, Amity UniversityUttar Pradesh, Noida for their inspiration, overwhelming support, and support of Prof. B Shukla, Acting Vice-Chancellor, Amity University Uttar Pradesh, Noida; Prof. Sanjay Srivastava, Dean,Faculty of MANAGEMENT Studies and Director General, Amity Business School, Amity University Uttar Pradesh, Noida and Bansal, Director, Amity Business School, Amity University Uttar Pradesh, Noida was very reassuring and invaluable. Ithank them from the core of my preparing the text of this book, I have benefitted immensely by referring many books and publications. I express mygratitude to those authors, publications, publishers and institutions, most of them have been listed in the references. I wouldalso like to thank Wikipedia, ( as accessed on 6/5/09) from where I have taken quotes that I have placed atthe beginning of each chapter.

10 If anybody is left out inadvertently, I seek their am thankful to my esteemed colleagues, and students who have contributed to this book through their valuable adviceand feedback. I express my sincere thanks to Trinity Press and Editorial Staff for their excellent job during the publication of thebook. Last but never ever the least I thank God Almighty and my family for being there whenever I need hope that the book serves the purpose for its readers and that I will continue to get their support and suggestions. I retainthe responsibility of errors of any kind in the book. Suggestions and comments to improve the book in content and in style arealways welcome and will be appreciated and : (Dr) J K SharmaAcknowledgementsPreface to the Third EditionvPreface to the First EditionviiAcknowledgementsixChapter 1 QUANTITATIVE TECHNIQUES .