Definition: Consumer Decision Making is the process of choosing products and services for consumption among various alternatives. It is the initial step in understanding consumer behavior. And a base for marketers to devise customer-oriented strategies. Following are some of the common decisions taken by the consumers in the daily life: - What to buy? How much to … [Read more...] about Consumer Decision Making
Assembly Line Balancing
Definition: Assembly Line Balancing (ALB) optimizes the mass production process by dividing tasks into workstations and allocating equal processing time to each one without any delay. The assembly line in which the workstations have equal processing time with less or no ideal time is said to be a perfect one. It must be balanced in order to ease the manufacturing … [Read more...] about Assembly Line Balancing
Absorption Costing
Definition: Absorption Costing is the oldest technique for estimating profit/cost per unit for Goods and Services. More precisely, it is a technique to determine the cost or profit of the manufactured products. Here, production is taken as the base for the profit calculation. It identifies and combines all the production costs, whether Variable or Fixed. After that, … [Read more...] about Absorption Costing
Location Analysis Techniques
Definition: Location Analysis Techniques are the methods that critically evaluate location alternatives to select an ideal location for the Plant or Industry. These are the tools used by the organizations for decision making while locating a plant or facility. Location techniques are a systematic approach for choosing the most desirable location alternative. It strives to … [Read more...] about Location Analysis Techniques
Investment Multiplier
Definition: The concept of Investment Multiplier suggests that the increase in the Investments will lead to the income generation in multiples. In other words, the amount of Income/Output amplifies, resulting from the increase in the level of Investments. Investment Multiplier is the contribution of the famous economist John Keynes. He explained it with the help of the … [Read more...] about Investment Multiplier
Techniques of Controlling
Definition: Techniques of Controlling are the tools used for establishing control over business activities, monitoring and taking necessary corrective measures. There are several Traditional and Morden techniques available for efficient business control. The selection of the techniques must be a strategic approach. While selecting the most suitable technique, the … [Read more...] about Techniques of Controlling
Staffing Process
Definition: The Staffing Process is a series of activities performed to acquire, manage and retain the manpower inventory to accomplish organizational goals. It ensures the availability of the most suitable person for the Right Job at the Right Time. It covers various interrelated activities required to fill the vacancies designed in the organizational structure. Besides … [Read more...] about Staffing Process
Location Decision
Definition: Location Decision in operation management is finding an ideal geographical region to install a Facility or Plant. It is a vital component in facility planning as it greatly impacts the organization's Profitability, Cost and Success. In other words, the decision about the area for locating a facility is the Location Decision. It is also termed as Facility Location … [Read more...] about Location Decision
Debenture Redemption Reserve
Definition: Debenture Redemption Reserve (DRR) is a reserve created to designate a portion of the company's divisible profits, used during the Redemption of Debentures. It acts as a shield against the default in payment to the debenture holder from the company's end at the due date. The goal behind the creation of DRR is to cut the risk of fund shortage on Redemption. As the … [Read more...] about Debenture Redemption Reserve
Liquidity Preference Theory
Definition: Liquidity Preference Theory implies that Interest is an economic event determined by two factors, i.e. the Demand for Money and the Supply of Money. The great economist Lord Keynes gave this theory for Interest rate determination. Conventionally, classical theorists suggested that people only use money for transaction motives. They keep the money to meet their … [Read more...] about Liquidity Preference Theory