DISC 212 Introduction to Management Science Spring 2013

Instructor Room No. Office Hours Email Telephone M. Adeel Zaffar 312 PDC Building TBA adeel.zaffar@lums.edu.pk 8026 3 Nbr of Lec(s) Per Week

Course Basics Credit Hours Session(s) Labs (Total) Tutorials (per week)

2 7 1

Duration 75 min Duration 75 min Duration 90 min

COURSE DESCRIPTION This course is designed to provide students with a sound conceptual understanding of the role that management science plays in the decision making process. It is an important introductory course in developing decision models and understanding their application to management problems. The emphasis is on models and techniques that are widely used in all industries and functional areas, including operations, finance, accounting, and marketing. COURSE PREREQUISITES Sophomore standing. A keen interest in problem solving (logic, math, and statistics) and familiarity with Excel are required. COURSE OBJECTIVES & LEARNING OUTCOMES To develop in students an appreciation of the management science approach to problem formulation and solution To introduce students to various optimization techniques and particularly develop an understanding of linear programming problems To introduce students to basic networking models and their application in business decision making To introduce students to Queuing Theory and basic queuing models To introduce students to the basic concept of decision analysis and various techniques involved in evaluating different decision-making scenarios GRADING BREAKUP Attendance: 10% Quizzes: 15% Exams 1-3 (closed book, closed notes): 75% Final Exam* (comprehensive, open book, open notes): 25% The lowest score from the 4 exams will be dropped.

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Topic Course introduction & syllabus Introduction to Modeling Modeling approach towards decision making Types of models Good decisions, good outcomes Introduction to Optimization and Linear Programming Mathematical Optimization Characteristics of optimization problems Mathematical programming Linear programming (LP) LAB LECTURE Solving Linear Programming problems Modeling and Solving LPs in a Spreadsheet Using Solver Make vs. Buy Decisions LAB LECTURE Modeling and Solving LPs in a Spreadsheet An investment problem Modeling and Solving LPs Transportation Problem Blending Problem LAB LECTURE Modeling and Solving LPs in a Spreadsheet Production and Inventory Planning Problem Multi-period cash flow problem Case on Linear Programming Exam 1 Closed book, closed notes Sensitivity Analysis Purpose of sensitivity analysis Analyzing the sensitivity reports LAB LECTURE Sensitivity Analysis What can change and what will the changes mean in terms of optimal solution The Simplex Method Introduction to Network Modeling Transshipment problem LAB LECTURE Network Modeling Shortest path problem Equipment Replacement Problem

Readings/Assignments

Syllabus Chapter 1

Chapter 2

Chapter 2 Chapter 3

Chapter 3

Chapter 3

Chapter 3

Chapters 1 3 Chapter 4

Chapter 4 Chapter 4 Chapter 5

Chapter 5

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Network Modeling Transportation/Assignment problems Generalized network flow problems Maximal flow problems Network Modeling Special Modeling Considerations Minimal Spanning Tree problems Case on Network Modeling EXAM 2: Closed book, closed notes Introduction to Queuing theory Purpose of queuing models Characteristics of queuing models Notation LAB LECTURE Introduction to Queuing theory Basic models M/M/s Introduction to Queuing theory M/G/1 and M/D/1 Case on Queuing Theory Decision Analysis Characteristics of decision problems Good decisions vs. good outcomes Influence diagrams Decision Analysis The payoff matrix Non-probabilistic methods Probabilistic methods LAB LECTURE Decision Analysis Decision trees Case on Decision Analysis EXAM 3: Closed book, closed notes

Chapter 5

Chapter 5

Chapters 4 & 5 Chapter 13

Chapter 13

Chapter 13

Chapter 15

Chapter 15

Chapter 15

Chapters 13 and 15

Comprehensive Final Exam: Open book, open notes

Please note that the syllabus may be modified before the start of the semester.