Engineering Economics and Management Policy
This course covers the discipline of engineering economics and how this discipline influences management policy and decision-making. The major emphasis is on the selection process for capital investments, both tangible and intangible, and how this process is structured and constrained by the time value of money, the source of funds, market demand, and competitive position. The first part of the course covers the basics of the engineering economics on which the selection process rests. The remaining parts cover the selection process itself, beginning with deterministic analyses based on single-valued estimates, continuing on, where significant, to risk analyses based on multivalued estimates, and concluding with multiattribute analyses in which both the monetary and non-monetary factors involved in investment decisions are combined into single figures of merit. In passing through the process, capital budgeting, cost estimation, probability analysis, uncertainty analysis, and Monte Carlo simulation are introduced and applied. Case studies are used where appropriate.