Rules for Ties

In Linear Programming, in choosing the key column and key row, whenever there is a tie between two or more numbers, the following rules may be followed.
1. If there is a tie between two or more numbers in the index row, select the column farthest to the left as the key column.
2. If there is a tie between two or more smallest positive ratios in the ratio column, select the row nearest to t6he top as key row.

Nominal Group Technique

Nominal group technique is a participatory approach for finding fact, identifying problems and strengths, generating ideas and evaluating progress. It is based on assumption of work independently and then, combines ideas. In this technique, each individual member are presented with a problem and each member is responsible for developing ideas for situation individually and independently. All these ideas are shared with each other in a prescribed format for suggestion and classification. At last, group members choose the best alternative by secret ballot. This process is called nominal because all members work independently and are considered as a part of group in name only.

Service Mechanism

The service mechanism is concerned with the manner in which customers are serviced and leave the service system. It refers to arrangement of service facilities and service time distribution.

Surplus Variables

If the constraints of given LP (Linear Programming) problem are greater than or equal to type, then non-negative variables are subtracted from left hand sides of greater than or equal to constraints to convert them into equations. Such non negative variables are called surplus variables.

Use of forecast Information

A manager can take a reactive or proactive approach to a forecast. A reactive approach views forecast as probable descriptions of future demand, and a manager reacts to meet that demand i. e. the manager tries to adjust production rates adjustment inventories, adjust the workforce etc. While a proactive approach seeks to actively influence demand by advertising, pricing or product/service changes.

Generally, proactive approach require either an explanatory model 9regression) so as to make two forecast viz. present value and future prediction.

Forecasts are the basic planning. In other words forecasts are vital inputs for both the design and the operation of the production systems to anticipate the future.

Simulation

To simulate is to try of duplicate or imitate the features, appearance, and characteristics of a real system. Simply, simulation is a technique of testing a model, which resembles a real-life situation.

The term simulation in the context of business and social science applications refers to the operation of a numerical model that represents the structure of a dynamic process. Given the values of initial conditions, parameters and exogenous variables a simulation is run to present the behaviour of the process over time. Simulation approach can also be useful in building models for understanding future conditions.

Operations Management

Since 1970s, service sector become a prominent sector for economic and social development of the country. Therefore, the whole organizations are classified into manufacturing and service sectors. Then, the new term operations management emerged in the place of production management.  The production management changed into operations management. Therefore, operations management focuses more in service sectors.

Intermittent Production system

In this system, goods and services are produced to fulfill the orders of customers rather than for stock. The production facilities used in this system are flexible enough to produce wide varieties of products accordance with the order and need of customers. Therefore, there is no continuity in flow of material and resources. The flow is intermittent i.e. not continuous. In this system, raw materials, process, and design should be continuously adjusted and changed with the changes in design, shape, size, quality, and orders of customers. As a result, production planning and controlling becomes complex. It is widely used in hospitals, machine shops, restaurants, furniture, and offset printing press etc. 

Quantitative Method

Quantitative method involves either the extension of historical data or development of associative models that attempt to utilize explanatory variables to make a forecast. The qualitative techniques are used because it is quite impossible to quantify them. Quantitative techniques consist mainly of analyzing sometimes contaminate qualitative menthods. The basic quantitative methods of forecasting are extrapolative or time series and causal forecasting.

Stable rupee amount per share

Under this scheme, a firm distributes an equal sum of money as dividends in every time period. Dividend per share is not effected with the fluctuations in earnings. Stockholders receive fixed or constant rupee income in every time period.

Ex-Dividend date

The date when the rights to dividends leaves the stock is called the ex-dividend date. Generally, ex-divided date  is set four days prior to the holder of record date.

Declaration Date

The date on which the meeting of board of directors passes a resolution to pay a dividend is known as declaration date.

Motives of holding Inventory

1. Transaction motive
2. Precautionary motive
3. Speculative motive.

Meaning of Risk

Generally risk is taken as negative term. In finance it is the variability of actual future return from the expected return. In other words, risk is the possibility that the actual return from holding a security will deviate from the expected return. So risk is the outcome of uncertainty and there is perfect correlation between risk and uncertainty. 

Area of uses of funds

- Repayment of long-term loans
- Purchase of fixed assets
- Payment of cash dividend
- Decrease in liability or equity
- Increase in working capital
- Purchase of long-term investment.

Source of cash

- Increase in liability or equity
- Funds from operations
- Issue of shares and debentures
- Sales of fixed and long term investment
- Decrease in working capital
- Income from investment.

Importance of Financial Statement

- Historical record
- Course of action
-Reliable financial information-economic resources and obligations.
- Estimating the earnings potential of the enterprise.
- Providing information about economic resources and obligations.
etc.

The statement of Retained Earning

A statement reporting the change in the firm's retained earnings as the result of the income generated and retained during the year. The balance sheet figure for retained earnings is the sum of the earnings retained for each year the firm has been in business. Retained earnings are used to expand the business but not used for the payment of dividends or anything else.

The Balance sheet

The balance sheet is that financial statement which shows financial position of a firm at a specific point of time.

Income statement

The income statement is also known as profit and loss account. It presents the result of business operations during a specified period of time such as, a quarter of a year. In other words, it summarizes the firm's revenues and expenses over an accounting period.