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Engineering Management and Economics

الكلية كلية الهندسة     القسم  الهندسة البيئية     المرحلة 3
أستاذ المادة احمد طالب صاحب العودة       23/10/2014 06:50:12
Engineering Management and Economics
References:

1. John Dustin Kemper, 1993, “ Introduction to the Engineering Profession”, Saunders College, USA.

2. Nigel, J. Smith, 2002, “ Engineering Project Management”, Blackwell Science, UK.

3. Panneerselvam, R., 2012, “ Engineering Economics”, PHI Learning Private Limited, New Delhi.

4. Panneerselvam, R. and P. Senthilkumar, 2009, “ Project Management”, PHI Learning Private Limited, New Delhi.

5. Ricky W. Griffin, 2002, “ Management, Houghton Mifflin” , Boston, USA.

6. William J. Stevenson, and Ceyhun Ozgur, 2007, “ Introduction to Management Science with Spreadsheets”, McGraw-Hill, New York, USA.

7. Wu, N., and R. Coppims, 1981, “ Linear programming and extensions ”, Mc Gram, USA.

Introduction to engineering management and economic
Management : Linear programming
Economics is the science that deals with the production and consumption of goods and services and the distribution and rendering of these for human welfare.
Law of Supply and Demand
Economic efficiency
Economic efficiency is the ratio of output to input of a business system.
Engineering Economics
Engineering economics deals with the methods that enable one to take economic decisions towards minimizing costs and/or maximizing benefits to business organizations.
BREAK-EVEN ANALYSIS
Linear programming is called a normative procedure because it prescribes the optimal solution to a problem. Breakeven analysis is a descriptive procedure because it simply describes relationships among variables; it then is up to the manager to make decisions.
The main objective of break-even analysis is to find the cut-off production volume from where a firm will make profit.
Profit/Volume Ratio (P/V Ratio)

P/V ratio is a valid ratio which is useful for further analysis.
EXAMPLE 1 Consider the following data of a company for the year 1997:
Sales = Rs. 1,20,000
Fixed cost = Rs. 25,000
Variable cost = Rs. 45,000
Find the following: (a) Contribution
(b) Profit (c) BEP (d) M.S.

Solution

(a) Contribution = Sales – Variable costs
= Rs. 1,20,000 – Rs. 45,000
= Rs. 75,000

(b) Profit = Contribution – Fixed cost
= Rs. 75,000 – Rs. 25,000
= Rs. 50,000


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