An Introduction To Business Decision Modelling - PowerPoint PPT Presentation

Loading...

PPT – An Introduction To Business Decision Modelling PowerPoint presentation | free to view - id: 733748-ZmZiN



Loading


The Adobe Flash plugin is needed to view this content

Get the plugin now

View by Category
About This Presentation
Title:

An Introduction To Business Decision Modelling

Description:

An Introduction To Business Decision Modelling Chen Zhimin( ) School of Management Shenzhen University Office: 2403 Tel: 26534104(O) 13902972552(Mobile) – PowerPoint PPT presentation

Number of Views:46
Avg rating:3.0/5.0
Slides: 29
Provided by: chen295
Category:

less

Write a Comment
User Comments (0)
Transcript and Presenter's Notes

Title: An Introduction To Business Decision Modelling


1
An Introduction To Business Decision Modelling
  • Chen Zhimin(???)
  • School of Management
  • Shenzhen University
  • Office ???2403
  • Tel 26534104(O) 13902972552(Mobile)
  • Email chenzm_at_szu.edu.cn

2
1. The Structure of Linear Models
  • The general expression for a straight line
  • yabx
  • y and x dependent /independent variables of
    interest
  • a and b constants, coefficients, parameters
  • a Intercept--- yab(0)a
  • b Slope (Gradient)
  • bthe change in y/unit change in
    x
  • ?y/ ?x

3
(No Transcript)
4
  • Example y32x
  • Intercept a3
  • Slope b?y/ ?x2
  • Shifts of a straight line
  • Changes in the intercept
  • y72x
  • y-22x
  • Changes in the slope
  • y35x
  • y31x

5
  • Two fundamental types of shifts of straight line
  • Parallel shift changes in the intercept
  • Pivotal shift changes in the slope

6
(No Transcript)
7
(No Transcript)
8
(No Transcript)
9
(No Transcript)
10
(No Transcript)
11
(No Transcript)
12
(No Transcript)
13
Break Even Analysis
  • A company/firm
  • Make a single product
  • Capacity 150
  • Price 20
  • Fixed cost 500
  • Variable cost 15
  • Find Break-Even Point

14
  • Production Potential
  • 0-150 units
  • Revenue Consideration
  • Total Revenue(TR)
  • TRpq
  • p ----selling price/unit
  • q ----quantity sold
  • Example TR020q (comparison with yabx)
  • Average Revenue(AR)
  • ARTR/qpq/qp

15
(No Transcript)
16
  • Marginal Revenue(MR)
  • MR(the changes in TR)/(a unit changes in q)
  • ?TR/ ?q
  • Cost Considerations
  • Fixed Cost(FC)
  • Irrespective of how many units of output are
    produced annual rental charges, management
    cost,..
  • Total Variable Cost(TVC)
  • TVCVCq
  • VC variable cost per unit labour/material
    payment

17
  • Total Cost(TC)
  • TCFixed Cost Total Variable Cost
  • FCVCq
  • Example TC50015q
  • (compared with yabx)
  • Average Cost(AV)
  • AVTC/q
  • Marginal Cost(MC)
  • MC ?TC/ ?q

18
(No Transcript)
19
  • Break Even Analysis
  • Diagram 1.4
  • System of linear equations
  • TR020q
  • TC50015q
  • TRTC (Break Even)
  • Break Even Solution
  • To scan Table 1.2
  • To read Diagram 1.4
  • To solve the system of linear simultaneous
    equations

20
  • The rule to write the system of linear equations
  • The unknowns have been written in a specific ,
    consistent order in each equation
  • All terms involving unknowns have been taken to
    the Left Hand Side (LHS) of each equation
  • All constants are taken to the Right Hand Side
    (RHS) of each equation
  • The coefficients of each unknown are carefully
    identified in each equations, including 0 and 1

1TR0TC-20q0 0TR1TC-15q500 1TR-1TC- 0q0
21
(No Transcript)
22
(No Transcript)
23
(No Transcript)
24
(No Transcript)
25
(No Transcript)
26
(No Transcript)
27
(No Transcript)
28
(No Transcript)
About PowerShow.com