Leonkozminskiacademy of Entrepreneurship and Management

LEONKOZMINSKIACADEMY OF ENTREPRENEURSHIP AND MANAGEMENT

Operations Research

2005/2006

SYLLABUS

Course Description:

This is an introductory course in operations research (OR). The objective is to introduce the student to the OR process and to a number of different areas within OR. The primary emphasis will be on linear programming and its applications, covering modeling, the simplex method, sensitivity analysis, and the transportation and assignment problems. Other areas such as network optimization problems, PERT/CPM models for project management,goal programming, decision analysis, and queueing models will also be covered.

In this course, the algorithms that are used to solve the OR models will be ignored. There is no good reason why typical business students should learn the mathematical details of algorithms executed by computers. The use of spreadsheets, such as the Solver add-in that comes with Excel, as a primary medium of instruction, constitutes a new wave in the teaching of operations research (Hillier and Hillier, 2003). Both business students and managers now live with spreadsheets which can be used to do real management science.

Model formulation lies at the heart of operations research methodology. Therefore, this course heavily emphasizes the art of model formulation, the role of a model, and the analysis of model results.

Course Materials:

Course NotesEugene Kaciak, Course Notes for Operations Research – 2005/2006(

Textbook (not required)Frederick S. Hillier and Mark S. Hillier (2003),Introduction to Management Science: A Modeling and Case Studies Approach with Spreadsheets, 2nd ed., McGraw-Hill, New York, NY

Instructor:Prof. Eugene Kaciak, Ph.D. (Faculty of Business, Brock University, Canada); E-mail:

Grading Scheme:Group Home Reports (six, @5% each)30%

Midterm Exam30%

Final Exam40%

______

100%

Group Home Reports

Each group of five (5) people of YOUR CHOICE will be responsible for writing six (6) group home reports. Each home report will involve analysis of a small business case. Calculations have to be done with the Solver add-in (Excel) in a way presented during class sessions. The group reports are designed to familiarize students with the course material, as well as give them an opportunity to practice the use of computer software. The business cases will be made available to students at the beginning of the term.

Late reports will be accepted, however with a penalty of 5% grade reduction per day.

Midterm and Final Exams

The exams will involve:

i. True/False and Multiple Choice questions, based on the material covered in class and presented in the Course Notes.

ii. Solving and interpreting business cases similar to those studied in class.

Students may bring to the exam only one sheet of paper (letter size) with any formulas/notes written on its two sides. No other notes, textbooks, laptop computers, etc. will be allowed. Calculators will be permitted.

Course Objectives:

The focus for this particular course is to help students understand management science. This field of science is having a dramatic impact on the profitability of numerous business firms around the world (Hillier and Hillier, 2003).

At the end of this course, a student will:

Gain an appreciation for the relevance and power of management science
Learn to recognize when management science can (and cannot) be successfully applied
Learn how to apply the major techniques of management science to analyze a variety of managerial problems
Develop an understanding of how to interpret the results of management science study

CLASS SCHEDULE

(i) Each session will be presented in the Microsoft PowerPoint Presentation format. The PowerPoint files are included in the Course Notes.

(ii) All the methods discussed in class will be illustrated by the instructor (“hands-on”) with procedures using the Solver add-in program in Excel.

(iii) The business cases will be made available to students at the beginning of the term.

SESSION / CONTENT
#1 / a) Introduction: (i) Course outline; (ii) Computer software
b) Linear Programming: Basic Concepts
Case #1:The Wyndor Glass Co. Product-Mix Problem (pp. 1-3)
#2 / a) Linear Programming: Basic Concepts (cont.)
Case #2:TheProfit & Gambit Co. Advertising-Mix Problem (pp. 4-7; 13-14)
b) The Art of Modeling with Spreadsheets
Case #3: The Everglade Golden Years Co. Cash Flow Problem (p. 8)
Note: / Group Home Report #1 (Case: Auto Assembly) - due at the beginning of Session #4 (p. 72)
#3 / a) Linear Programming: Formulation and Applications
Case #4:The Super Grain Co. Advertising-Mix Problem (pp. 9-11)
Case #5: Capital Budgeting Problem of the Think-Big Development Co. (pp. 11-12)
b) Linear Programming: Formulation and Applications
Case #6: Personnel Scheduling at Union Airways (pp. 14-16)
Case #7: The Big M Co. Distribution Problem (pp. 17-18)
#4 / Sensitivity Analysis (“What-If”) for Linear Programming
Case #8:The Wyndor Case Study (cont. pp. 19-20)
Note: / Group Home Report #2 (Case: Prudent Provisions for Pensions) - due at the beginning of Session #6 (p. 59)
#5 / Transportation Problems
Case #9:The P & T Co. Distribution Problem (pp. 21- 25)
Case #10: The Texaco Co. Site Selection Problem (pp. 26-27)
#6 / Assignment Problems
Case #11: The Sellmore Co. Problem (pp. 28-29)
Case #12: The Job Shop Co. (pp. 30-31)
Note: / Group Home Report #3 (Case: Farm Management) - due at the beginning of Session #8 (p. 60-61)
#7 / Midterm Exam (will cover Sessions 1 – 6)
#8 / Network Optimization Problems: Minimum-Cost Flow and Maximum Flow Problems
Case #13: The Distribution Unlimited Co. Problem (Minimum-Cost Flow Pr.) (pp. 31-33)
Case #14: The BMZ Co. Problem (Maximum Flow Problem ) (pp. 34-36)
Note: / Group Home Report #4 (Case: Shipping Wood to Market) - due at the beginning of Session #10 (p. 63)
#9 / Network Optimization Problems: Shortest Path Problems
Case #15: The Littletown Fire Department Problem (pp. 37-39)
Case #16: An Example of Minimizing Total Cost (Sarah’s case) (pp. 39-40)
Case #17: An Example of Minimizing Total Time (The Quick Co. case) (pp. 40-42)
#10 / Network Optimization Problems: Minimum Spanning-Tree
Case #18: The Modern Co. Problem (pp. 43-44)
Note: / Group Home Report #5 (Case: Money in Motion) - due at the beginning of Session #12 (p. 66-67)
#11 / PERT/CPM Models for Project Management
Case #19: The Reliable Construction Co. Project (pp. 44-45)
#12 / Considering Time-Cost Trade-Offs in Project Management
Case #20: The Reliable Construction Co. Project (cont.) (p. 45)
Note: / Group Home Report #6 (Case: Steps to Success) - due at the beginning of Session #14 (pp. 68-69)
#13 / Goal Programming
Case #21: The Dewright Co. Goal Programming Problem (pp. 46-51)
#14 / Decision Analysis
Case #22: The Goferbroke Co. Problem (pp. 52-54)
#15 / Queueing Models
Case #23: The Dupit Co. Problem (pp. 55-57)

Eugene Kaciak, Ph.D. – Syllabus: Operations Research (2005/2006)