Designed as a textbook for undergraduate students in various engineering disciplines Mechanical, Civil, Industrial Engineering, Electronics Engineering and Computer Science and for postgraduate students in Industrial Engineering and Water Resource Management, this comprehensive and well-organised book, now in its Second Edition, shows how complex economic decisions can be made from a number of given alternatives. It provides the managers not only a sound basis but also a clear-cut approach to making decisions. These decisions will ultimately result in minimising costs and/or maximising benefits. What is more, the book adequately illustrates the concepts with numerical problems and Indian cases. While retaining all the chapters of the previous edition, the book adds a number of topics to make it more comprehensive and more student friendly.