Some of the areas of management decision making, where the "tools" and " techniques" of OR are applied, can be outlined as follows :
1) Finance-Budgeting and Investments
(1) Cash-flow analysis, long rang capital requirements, dividend policies, investment portfolios.
(2) credit policies, credit risks and delinquent account procedures.
(3) Claim and complaint procedures
2) Purchasing, Procurement and Exploration
(1) Rules for buying, Supplies and stable or varying prices.
(2) Determination of quantities and timing of purchase
(3) Bidding policies
(4) Strategies for exploration and exploitation of raw material sources
(5) Replacement policies
3. Production Management
(1) Physical Distribution
(a) Location and size of warehouse, distribution centres and retail sources.
(b) Distribution policy
(2) Facilities planning
(a) Numbers and location of factories, warehouse, hospitals etc.
(b) Loading and unloading facilities for railroads and trucks determine the transport schedule.
(3) Manufacturing
(a) Production scheduling and sequencing
(b) Stabilization of production and employment, training, layoffs and optimum product mix.
(4) Maintenance and Project Scheduling
(a) Maintenance policies and preventive maintance.
(b) Maintence crew sizes.
(c) Project scheduling and allocation of resources.
4. Marketing
(a) Product selection, timing competitive actions.
(b) Number of salesman, frequency of calling an accounts percent of time spent on prospects
(c) Advertising media with respect to cost and time.
5. Personnel Management
(a) Selection of suitable personnel on minimum salary
(b) Mixes of age and skills
(c) Recruitment policies and assignment of jobs.
6. Research and Development
(a) Determination of the areas of concentration of research and development
(b) Project selection
(c) Determination of time cost trade-off and control of development projects
(d) Reliability and alternative desine.
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