Operation Management Particularies Essay Example | Topics and Well Written Essays - 1000 words

Operation Management Particularies - Essay Example While solving the problem you should remember that the main purpose of each entrepreneur is to minimize costs and to maximize benefits. In this case its evident that mathematic methods should be applied. The economist usually use linear programming Linear programming is an important field of optimization for several reasons. Many practical problems in operations research can be expressed as linear programming problems. Certain special cases of linear programming, such as network flow problems and multicommodity flow problems are considered important enough to have generated much research on specialized algorithms for their solution. A number of algorithms for other types of optimization problems work by solving LP problems as sub-problems. (http://en.wikipedia.org/wiki/Linear_ programming). To use the method you problem should be equated in the form of mathematic So linear function is c1x1+ c2x2+ c3x3 min. c1- number of loaders c2-number of tracks c3- every loader's salary. X1- number of parts loaded by each employee x2- truck tonnage x3- number of loaders. Restrictions are x1,x2, x3 c1.c2 c3 0. a11x1+a12x2+a13x36 a21x1+ a22x2 +a23x312 Forfeit is the return of property someone belonging or in return for a bad happening as part of a contractual or legal transgression (http://en.wikipedia.org/wiki/Forfeit). ... c1- number of loaders c2-number of tracks c3- every loader's salary. X1- number of parts loaded by each employee x2- truck tonnage x3- number of loaders. Restrictions are x1,x2, x3 c1.c2 c3 0. a11x1+a12x2+a13x36 a21x1+ a22x2 +a23x312 Than the problem is expressed in the form of matrix and solved by means of simplex method. Q2 In case of the trucks breaking down the manufacturer is able to demand a forfeit. According to the civil law debtor is obligated to compensate losses caused by the debtor's failure. Forfeit is the return of property someone belonging or in return for a bad happening as part of a contractual or legal transgression (http://en.wikipedia.org/wiki/Forfeit). Usually it is only done in the most extreme circumstances, in which the forfeiting party believes there is simply no way to continue under the present circumstances It may be counted as utilization of the parts by the manufacturer multiplied by hours of stoppage. Q3 There are some ways to ensure that the manufacturer doesn't run of the parts. First you can provide more parts than it is required and the manufacturers could stock it in their warehouse. Second it could be solved by insurances. The main principles of insurance are 1. there must be a larger number of similar objects so the financial outcome of insuring the pool of exposures is predictable. Therefore they can calculate a "fair" premium. 2. the losses have to be accidental and unintentional from the point of view of the insured. 3. the losses must be measurable, identifiable in location, time, and be definite. They also want the losses to cause economic hardship. That is, so the insured has an incentive to protect and preserve the property to minimize the probabilty that the losses occur. 4. the loss