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  • 24210 74771 / 24210 74776
  • Fax: 242107-4772
  • 28hs Octovriou 78, Volos, P.C. 38333

Review

Course outline

1. THE NATURE AND SCOPE OF MANAGERIAL ECONOMICS: Definition of Managerial Economics, Basic process of decision making, Theory of the firm, Nature and function of profits

2. OPTIMIZATION TECHNIQUES AND NEW MANAGEMENT TOOLS: Methods of expressing average and marginal relationships, Optimization analysis, Constrained optimization, New management tools for optimization

3. DEMAND THEORY: Demand for a commodity, Price elasticity  Income elasticity  and cross-price elasticity of demand, Using elasticities in managerial decision making
4. LINEAR PROGRAMMING (LP): A simple LP maximization problem with two variables, Construction of the mathematical model, Objective function and constraints, Feasible solution space, Graphical solution of LP models, Sensitivity analysis, Examples of LP applications with more than two variables

5. INTRODUCTION TO INVENTORY THEORY: Reasons for stocking physical goods, Inventory policy, Process of operating inventory systems, Single-item Economic Order Quantity (EOQ) model with (a) zero lead-time and (b) positive lead-time, Single item EOQ models with (a) price breaks, and (b) backorders

6. PRICING IN PRACTICE: Pricing of products with interrelated demands, Plant capacity utilization and optimal product pricing, Optimal pricing of joint products produced in fixed and variable proportions, Transfer pricing (a) with no external market for the intermediate product, and (b) with a perfectly and imperfectly competitive market for the intermediate product, Cost-plus pricing, Incremental analysis in pricing

Administrative Structure

Location