OPERATIONS MANAGEMENT

OPERATIONS MANAGEMENT
AREA OF STUDY: CORE
BAC 363

Year: 3
Semester: 6

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* Continuous
** Duration: 3 hours

Course Objectives
The objective of this course is to acquaint the students with various tools of operations management in solving business problems.
Course contents
Unit 1: Introduction to Operations Management T.H.2
Concept of operations management; Evolution of production and operations management; Interrelationships of operations management with other functions of management; Models and modeling in operation research.
Unit 2: A Review of Probability Concepts T.H.4
Dependent and independent cases, exclusive cases; Use of tree diagram to solve simple probability problems; Use of binominal, poisson and normal distribution to determine the probability of an event.
Unit 3: Decision Theory and Decision Trees T.H.4
Posterior probability and Bayesian; Decision tree analysis; Decision making with utilities; Utility curves and construction of utility curves.
Unit 4: Waiting Line Analyses T.H.4
The structure of queuing system; Development of queues; Patterns of a single and multi channel queue discipline; Waiting lines; Arrival rate model; Solution to numerical problems related to single channel mode.
Unit 5: Planning of Operations and Capacity T.H.12
Business planning; Production plan; Capacity planning and aggregate planning; Linear programming and its importance in an organization; The simplex algorithm (Minimization and Maximization case); Big M and Two phase method; Alternative (Multiple) solution, unbounded and infeasible solution.
Unit 6: Duality and Sensitivity Analysis in Linear Programming T.H.10
Concept of Duality (with economic interpretation); Dual algorithm and solution; Unrestricted variables in duality; Advantages of duality; Basic objective of sensitivity analysis in linear programming.
Unit 7: Theory of Games T.H.7
Introduction; 2 person zero-sum games; pure strategies, games with saddle point; Mixed strategy: games without saddle point, algebraic and graphic method for games without saddle point.
Unit 8: Introduction to Simulation Model T.H.5
Advantages and limitations of simulation; Methodology for simulation, Monte Carlo method.
Suggested Readings
1. Dilworth, James B., Operations Management; Design, Planning and Control for Manufacturing and Services, New York: McGraw-Hill Company.
2. Stevenson, William J., Production/ Operations Management, Boston: Irwin
3. Shrestha, Sunity, Production/Operation Management, Kathmandu: Buddha Academic Enterprises Pvt. Ltd.
4. Levin, Richard et al, Quantitative Approaches to Mgt, New Delhi: Tata McGraw- Hill Pvt. Ltd.