Definition: The Autonomous Investment is the capital investment which is independent of the economy shifts. This means, any change in the cost of raw material or any change in the salary and wages of labor etc. has no effect on the autonomous investment. The autonomous investment is made for the welfare of the society and not for generating profits out of such investments. … [Read more...] about Autonomous Investment
Induced Investment
Definition: The Induced Investment is a capital investment that is influenced by the shifts in the economy. These investments are made with the intention to generate profit out of such investments. The change in the cost of raw material, change in the tastes and preferences of customers, increase in the lending or borrowing rates, etc., have a direct impact on the induced … [Read more...] about Induced Investment
Critical Path Method
Definition: The Critical Path Method or CPM is a network analysis technique concerned with planning and controlling of complex, but routine projects. Simply, Critical path method is generally used for the projects whose time duration is known with certainty and also the amount of resources required for the completion of the project is assumed to be known. First of all, the … [Read more...] about Critical Path Method
PERT (Program Evaluation Review Technique)
Definition: The PERT (Program Evaluation Review Technique) is a technique used in the planning and controlling of large scale projects. Simply, PERT is the statistical tool used to represent the set of activities (task), required to be performed for the completion of the project. PERT is a planning and controlling tool for the management that provides the complete roadmap of … [Read more...] about PERT (Program Evaluation Review Technique)
Queue Structure
Definition: Queue Structure is the crucial element of a queuing system, as it shows the queue discipline, which means the order in which the customers are picked from the queue for the service. Simply, the way the customer is selected from the waiting line for service is shown by the queue structure. The customers can be chosen from the queue in one of the following … [Read more...] about Queue Structure
Service System
Definition: The Service System is another element in the general queuing structure, that talks about two aspects: Structure of the service system and speed of service. The queuing system refers to the process wherein the customer enters into the queue, wait to avail the service and finally leaves the system after getting the service. The aspects of service system are … [Read more...] about Service System
Arrival Process
Definition: The Arrival Process is the first element of the queuing structure that relates to the information about the arrival of the population in the system, whether they come individually or in groups. Also, at what time intervals people come and are there a finite population of customers or infinite population. The general structure of the queuing system is shown … [Read more...] about Arrival Process
Queuing Theory
Definition: The Queuing Theory, also called as a Waiting Line Theory was proposed by A.K. Erlang. According to him, the queuing theory applies to those situations where a customer comes to a service station to avail the services and wait for some time (occasionally) before availing it and then leave the system after getting the service. The situations where the arrived and … [Read more...] about Queuing Theory
Modified Distribution Method
Definition: The Modified Distribution Method or MODI is an efficient method of checking the optimality of the initial feasible solution. The concept of MODI can be further comprehended through an illustration given below: Initial basic feasible solution is given below: Now, calculate the values of ui and vj by using the equation: ui+vj = Cij Substituting the value … [Read more...] about Modified Distribution Method
Stepping Stone Method
Definition: The Stepping Stone Method is used to check the optimality of the initial feasible solution determined by using any of the method Viz. North-West Corner, Least Cost Method or Vogel’s Approximation Method. Thus, the stepping stone method is a procedure for finding the potential of any non-basic variables (empty cells) in terms of the objective function. Through … [Read more...] about Stepping Stone Method