Module 5: Role of Models in Production Management
MODELS FOR DECISION MAKING
Based on PURPOSE
DESCRIPTIVE
Merely describe system
PRESCRIPTIVE or NORMATIVE
(Tell What to do to maximize profit,minimize cost)
Hence a NORM or OBJECTIVE FUNCTION IS NEEDED
Based on ENVIRONMENT
DETERMINISTIC
Certainty assumed
PROBABILISTIC
Randomness assumed
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Prof.S.G.Deshmukh & Prof.Arun Kanda
