Decision Making part 2

• Qualitative evaluation refers to evaluation of alternatives using intuition and subjective judgment.
• one is used to calculate the number of items that should be ordered at one time to minimize the total yearly cost of placing orders and carrying the items in inventory.

  Economic Order Quantity Model
• an economic order quantity technique applied to production orders,

  Production Order Quantity Model
• this is an inventory model used for planned shortages.

  Back Order Inventory Model
• an inventory model used to minimize the total cost when quantity discounts are offered by suppliers.

  Quantity Discount Model
• a techniques which enables engineer managers to schedule, monitor, and control large and complex projects by employing three time estimates for each activity.

  1. The Program Evaluation Review Technique (PERT)
• this a network technique using only one time factor per activity that enables engineer managers to schedule, monitor, and control large and complex projects.

  2. The Critical Path Method