Fundamentals Of Engineering Economics (Paperback) | Released: 2012

About the Book

Fundamentals of Engineering Economics highlights the importance of economics in engineering and helps engineers in financial decision making. It provides comprehensive coverage of the subject from basic principles to state-of-the-art concepts and applications. The coverage of the topics in this book is very wide, and every care has been made to cover maximum syllabi of all major universities and institutions in India.
This book is common to all students in engineering discipline and is very useful in evaluating the economic merits and demerits of various solutions to engineering problems. Moreover, readers from different backgrounds will find the material in this book easily understandable. Engineering problems may involve the decisions related to resources and their allocation. Engineering economics is closely associated with conventional microeconomics; but here, its focus is on problem solving at operational levels.
In this book, basic economics that are applicable in engineering education such as demand and supply, production function, introduction to micro- and macroeconomics have been incorporated besides the financial decision making.

About the Author

Pravin Kumar, B.Sc. Engg. (Mechanical), M. Tech. (Industrial Management) and Ph.D. (SCM), is an Assistant Professor of Industrial Engineering and Management in the Department of Mechanical Engineering, Delhi Technological University. He has more than 12 years of teaching and research experience and published many research papers in international and national journals. He has research and teaching interests in Industrial Engineering, including Engineering Economics, Operations Management, Supply Chain Management, and Quality Management. He received the best case study award of the year 2007-08 from National Council of Indian Institution of Industrial Engineering. He is the life associate member of Indian Institution of Industrial Engineering and life member of System Society of India. He has been working as Secretary of Delhi Chapter of Indian Institution of Industrial Engineering since last 6 years.

Table of Contents:
1 Introduction to Engineering Economics 1.1 Introduction 1.2 Concept of Efficiency 1.3 Theory of Demand 1.4 Elasticity of Demand 1.5 Supply and Law of Supply 1.6 Indifference Curves 1.7 Budget Line 1.8 Welfare Analysis 2 Managerial Economics 2.1 Introduction 2.2 Scope of Managerial Economics 2.3 Techniques of Managerial Economics 2.4 Applications of Managerial Economics 3 Market Structures 3.1 Introduction 3.2 Perfect Competition 3.3 Monopoly 3.4 Monopolistic Competition 3.5 Oligopoly 3.6 Duopoly 3.7 Monopsony 3.8 Monopoly and Monopsony: A Comparison 4 Demand Forecasting and Cost Estimation 4.1 Introduction 4.2 Forecasting Horizons 4.3 Steps to Forecasting 4.4 Forecasting Methods 4.5 Seasonal Adjustments 4.6 Forecasting Performance Measures 4.7 Cost Estimation 4.8 Elements of Cost 4.9 Computation of Material Variances 4.10 Break-Even Analysis 5 Concepts in Management 5.1 Introduction 5.2 Characteristics of Management 5.3 Scope of Management 5.4 Classical School of Management 5.5 Functions of Management 5.6 Levels of Management 5.7 Skills of Management 5.8 Managerial Roles 5.9 Administration and Management 6 Project Management 6.1 Introduction 6.2 Features of a Project 6.3 Types of Projects 6.4 Project Management Life Cycle 6.5 Project Appraisal 6.6 Project Structure 6.7 Terminologies Used in Project Scheduling 6.8 Network Conventions 6.9 Project Crashing (Optimization through CPM) 7 Productivity 7.1 Introduction 7.2 Types of Production Systems 7.3 Production and Productivity 7.4 Efficiency 7.5 Effectiveness and Productivity Index 7.6 Productivity Cycle 7.7 Factors Influencing Productivity 7.8 Ways to Improve Productivity 8 Value Engineering 8.1 Introduction 8.2 Types of Values 8.3 Seven Phases of Value Analysis 8.4 Application of Value Analysis 8.5 Value Analysis Questionnaire 8.6 Advantages of Value Analysis 8.7 Value Analysis of a Graphite Pencil by Matrix Method 8.8 Function Analysis System Technique 9 Time Value of Money 9.1 Introduction 9.2 Simple Interest 9.3 Compound Interest 9.4 Present Worth Analysis 9.5 Future Worth Analysis 9.6 Annual Cash Flow Analysis 9.7 Rate of Return Analysis 9.8 Arithmetic Gradient 9.9 Geometric Gradient 9.10 Continuous Compounding 9.11 Normal and Effective Interest Rate 9.12 Perpetual Payment 10 Project Evaluation 10.1 Introduction 10.2 Determining Minimum Attractive Rate of Return 10.3 Payback (Payout) Period Method 10.4 Benefit-Cost Ratio 11 Comparison among Alternatives 11.1 Introduction 11.2 Basis for Comparison of Alternatives 11.3 Study Period 11.4 Useful Lives of Alternatives Are Equal to the Study Period. 11.5 Useful Lives of Alternatives Are Unequal 11.6 B-C Ratio Method for Comparison of Alternatives 12 Depreciation and Taxes 12.1 Introduction 12.2 Some Important Terms Used in Depreciation 12.3 Classical Depreciation Methods 12.4 Modified Accelerated Cost Recovery System 12.5 Taxes 13 Replacement Analysis 13.1 Introduction 13.2 Reasons for Replacement Analysis 13.3 Lives of Assets 13.4 Determining the Economic Life of a Challenger 13.5 Determining the Economic Life of a Defender 13.6 After-Tax Replacement Studies 14 Decision Making 14.1 Introduction 14.2 Types of Decision-Making Environments 14.3 Decision Tree Analysis 14.4 Multiple Criteria Decision Making 15 Concept of Financial Statement 15.1 Introduction 15.2 Sources of Company Information 15.3 Sources of International Economic Data 15.4 Financial Analysis 15.5 Financial Statement 15.6 Trading Account 15.7 Profit and Loss Account 15.8 Balance Sheet Requirements 15.9 Distinction between Profit and Loss Account and Balance Sheet 16 Financial Ratios 16.1 Introduction 16.2 Types of Financial Ratios 16.3 Advantages and Limitations of Ratio Analysis 17 Capital Budgeting 17.1 Introduction 17.2 Capital Financing and Allocation Functions 17.3 Sources of Capital Funds 17.4 Capital Asset Pricing Model 17.5 Weighted Average Cost of Capital 17.6 Leasing Decisions 17.7 Capital Allocation 18 Inventory Control 18.1 Introduction 18.2 Objectives of Inventory Control 18.3 Functions of Inventory 18.4 Understocking and Overstocking of Inventory 18.5 Analysis of Inventory 18.6 Costs Involved in Inventory 18.7 Continuous and Periodic Review Systems 18.8 Economic Order Quantity Models 18.9 Reorder Point 18.10 Order Quantity for Variable Demand Appendix A: Statistical Tables and Procedures Appendix B: End-of-Period Compound Interest Tables Appendix C: Answers to Selected Problems Index