CUHK Business School - The Chinese University of Hong Kong

DSME4020AB Decision Modeling and Analytics

( First Term, 2018-2019 )

Instructor

Name: Prof. Sang Won KIM

Office: CYT 915
Phone: 3943 9679
E-mail: skim@cuhk.edu.hk
Office hour: Tuesdays 3:00 pm – 4:00 pm or by email appointment

Teaching Assistant

Name: Yiying Zhang

Office: CYT 951
E-mail: zhangyiying@baf.cuhk.edu.hk
Office hour: Mondays 3:00 pm – 4:00 pm or by email appointment

Course Overview

This course introduces the concepts and methods of decision making and analysis, which involves the
application of mathematical modeling and analysis to solve business problems. Models are simplified
representations of real situations and can be invaluable tools for decision making processes. Students
will learn the basic elements of modeling, i.e., how to formulate a model and how to interpret and
utilize the information a model produces. The emphasis is put on models that are widely used in
diverse application areas, including finance, operations, and marketing. Specific applications include
production planning, revenue management, sales force planning, risk management, portfolio
optimization, among others. Using spreadsheets and other tools to implement, solve, and analyze the
models we develop will be illustrated in class.

Reference Textbook

Stephen G. Powell, Kenneth R. Baker, Management Science: The Art of Modeling with
Spreadsheets, 4th edition, Wiley.

Meeting Times and Locations

Section A: Wednesdays 2:30 pm – 5:15 pm @ Esther Lee Building (ELB) 308

Section B: Tuesdays 4:30 pm – 7:15 pm @ Lady Shaw Building (LSB) C2

NOTE: There are some exceptions to the lecture locations. Refer to ‘Course at a glance’ at the end.

Grading Policy

Homework Assignments 15 %
Midterm Exam 35 %
Final Exam 50 %
Total 100 %

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Examinations

Both the midterm and final exams are designed to test how well you understand and grasp the essence
of the modeling techniques covered in this course, including building, analysing, and solving a model,
and finally interpreting the insights generated.

The midterm exam is 2 hour long and scheduled on Friday, Oct. 26. It is in closed-note closed-book
format and will be comprised of multiple choices, short answer questions, and numerical problems
where you need to show details of your computation and reasoning. The final exam is scheduled on
Tuesday, Dec. 4 and is in the same format as the midterm. It will cover all the topics taught in this
course. No individual make-up examination will be offered.

Homework Assignments

Assignments helps you better understand how modeling and analytics can be used in various settings.
The main purpose of the assignments is to help you better digest the course materials rather than
testing and grading your performances in class. Accordingly, group work is encouraged: you may
choose to work with your classmates, actively discuss on the problems together, and provide and seek
helps. However, each student is required to hand in individual reports.

When your homework is due, you are required to submit the assigned homework at the beginning of
the class. Late homework will be accepted with a 5-point penalty by 5 pm on the due date, beyond
which there will be a penalty of 10 points for each additional day.

Course Study Outcomes

After completing this course, students should be able to:

1. Comprehend basic principles and techniques of applied mathematical modeling for managerial
decision making processes;
2. Structure problems and perform logical analyses;
3. Extract insights from analysing the models and use them to inform decision makers;
4. Be equipped with spreadsheet skills and tools for business decision making.

Policy on Classroom Conduct and Academic Honesty

Participating in class discussions are encouraged, but private conversations with other classmates are
strictly prohibited. Violating this policy will result in a substantial penalization to the final grade.

The Chinese University of Hong Kong places very high importance on honesty in academic work
submitted by students, and adopts a policy of zero tolerance on cheating and plagiarism. Any related
offence will lead to disciplinary action including termination of studies at the University. For more
details about CUHK policy, please visit: http://www.cuhk.edu.hk/policy/academichonesty/.

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Course at a glance (tentative schedule)

Lecture
# Date Topic Note
note no.

Tue, Sep. 4 (B)

1 Course introduction
Wed, Sep. 5 (A)

Tue, Sep. 11 (B)

2 1 Modeling and Decision Analysis
Wed, Sep. 12 (A)

Tue, Sep. 18 (B) Value of Information & Utility Theory,

3 2, 3
Wed, Sep. 19 (A) Intro to Optimization

Tue, Oct. 2 (B)

4 3, 4 Linear Programming
Wed, Oct. 3 (A)

Tue, Oct. 9 (B)

5 5 Sensitivity Analysis of LP
Wed, Oct. 10 (A)

Practice Problem Session 1 Location

6 Fri, Oct. 19 1-5
(6:30 pm – 9:15 pm) TBD

Tue, Oct. 23 (B)

7 6 Network Models
Wed, Oct. 24 (A)

Location
8 Fri, Oct. 26 1-5 MidTerm Exam (6:30 pm – 9:15 pm)
TBD

Tue, Oct. 23 (B)

9 7 Integer Programming
Wed, Oct. 24 (A)

Tue, Nov. 13 (B)

10 8 Simulation Models & Analysis
Wed, Nov. 14 (A)

Tue, Nov. 20 (B)

11 9 Optimization in Simulation
Wed, Nov. 21 (A)

Tue, Nov. 27 (B)

12 6-9 Practice Problem Session 2
Wed, Nov. 28 (A)

Location
13 Tue, Dec. 4 1-9 Final Exam (2:30 pm – 5:15 pm)
TBD