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INTRODUCTION TO NETWORK DESIGN AND ANALYSIS:

CS206 MIDTERM PAST PAPER

The level of hazard avoidance increments as your pay level falls, because of reducing the minimal utility of pay. Hazard avoidance is a typical element of normal utility amplifying conduct by the normal customer.

Model: If chances of winning = half Chances of losing = half You flip a coin, and in the event that head comes, you are given Rs. 100 and assuming tail comes, you need to pay Rs. 100.

Will you play this game or not? The response is on the off chance that you are a gamble loath individual, you won’t play this game since you think about the deficiency of Rs. 100 than the addition of Rs.

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Then again, in the event that you are at risk of adoring an individual, you will play this game. The complete utility bend for a gamble unbiased individual will be a straight line while it will be raised for risk disinclined individual. The more noteworthy the convexity (arch) the more gamble loath the individual will be.

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RISK HEDGING can be utilized to diminish the degree to which worries about vulnerability influence our day-to-day routines. Model: Insurance organizations work under the standard of the law of huge numbers.

CS206-INTRODUCTION TO NETWORK DESIGN AND ANALYSIS:

An insurance agency gathers the charge from individuals. They additionally expand the gamble. Within the sight of lopsided data, an insurance agency needs to fight the issues of antagonistic choice (individuals who need to purchase protection are likewise the most hazardous clients; an ex-bet issue) and moral danger (when an individual is safeguarded his way of behaving could turn out to be more careless; an ex-post issue).

The regular inventory system is an alternative to the permanent inventory system. With regular inventory, The system makes no effort to keep inventory and cost of goods sold up to date.
CS206 PAST PAPERS-INTRODUCTION TO NETWORK DESIGN AND ANALYSIS:
Instead, these amounts are determined only on a regular basis, usually at the end of each year. The traditional periodic inventory system works as follows: If you purchase raw materials, the cost is as follows:
You will be billed to your approved purchasing account, not your inventory account. if the product If sold, enter an item to record the revenue but do not enter an item to record the price of the item.
To sell or reduce your inventory account balance. Because inventory records are not updated When a transaction occurs, there is no inventory ledger. The basis of the regular inventory system is full due diligence at the end of the year.
CS206 MIDTERM PAST PAPERS-INTRODUCTION TO NETWORK DESIGN AND ANALYSIS:
This actual due diligence determines the amount of inventory that appears on the balance sheet. the price of The goods sold in a year is determined by a short calculation. c) Just-in-time inventory (JIT) system.
In this case, buy the goods or raw The components and parts are made just in time for sale or production. frequent A few hours for production or sale.
Includes complete manufacturing process In time for shipping the finished product. It reduces the “tied up” money in the resource stock And the finished product.
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There is no need to maintain a large inventory storage facility. However, The downside is that if the arrival of raw materials is delayed, work can be disrupted.
A just-in-time (JIT) inventory system is not an easy way for companies to adopt. it has the whole A philosophy that a company must follow to avoid disadvantages. the idea of ​​this philosophy comes from a variety of disciplines, including statistics, industrial engineering, and manufacturing.
Management and Behavioral Sciences. The JIT inventory philosophy has the following perspectives: How to view your inventory, what to say about management, and keys within the company Principles of JIT.
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