MC 514 Managerial Economics

mba531

MC506
Quantitative Methods for Managers - July 1, 2003

Gregory Judge
gregorywjudge@comcast.net

Books Needed:
INTRO TO MANAGEMENT SCIENCE Author ANDERSON- 9TH
Edition
http://faculty.cox.smu.edu/~jcollins/2306/
MBUS0520d. (Lindo)

Homework Assignment #1
1 Production Strategy, Chapter 2, pg 81
Homework Assignment #2
2 EnvironmentProtection, Chp 4, pg210
Homework Assignment #3
3 Warehouse Expansion,Chp10, pg 475
Proficiency Audit #1
4 Make-or-Buy Analysis,Chp11, pg520
Proficiency Audit #2
5 Property Purch. Strat., Chp14, pg678
Proficiency Audit #3
6 ForecastingLostSales,Ch16,pg 776

Midterm and final Tests
Open books 3 hr
_________________________
* Puad 558 Quantitative Analysis I

Quantitative Methods

Quantitative Analysis

Similar Courses
*

Introduction to Management Science, 7th ed., Taylor, Bernard (Prentice-Hall 2002)

MC506 Quantitative Methods for Managers

Learning Goals

Upon the successful completion of this course, you will be able to:

1.       Compare and contrast the quantitative and qualitative approaches to management decision making;

2.       Solve linear programming problems to identify optimal solutions;

3.       Analyze quantitative case problems and prepare managerial recommendations;

4.       Develop network representations;

5.       Develop activity schedules for project networks;

6.       Synthesize data as part of problem sets;

7.       Prepare recommendations for simulations;

8.       Evaluate how decision analysis is used to identify the best decision alternative;

9.       Develop forecasts using both quantitative and qualitative methods;

10. Solve linear programming problems with the use of a computer software program.

Core Concepts
To achieve the goals of this course, you will need to master the following core concepts:

1.       Quantitative analysis and decision making;

2.       Linear programming problems for maximization and minimization problems;

3.       Models of cost, revenue and profit;

4.       Breakeven analysis;

5.       Graph linear equations;

6.       Interpret computer output and solutions;

7.       Sensitivity analysis;

8.       Linear programming in the areas of marketing, media, finance, production, workforce assignment and performance;

9.       Network models: Transportation, Assignment, Transshipment, Production and Inventory;

10.   Project scheduling with PERT/CPM;

11.   Inventory models: Economic Order Quantity (EOQ), Economic Production Lot-Size, Single-Period, Quantity Discounts for the EOQ, Order-Quantity, Reorder-Point, Periodic-Review, Just-in-Time;

12.   Simulations;

13.   Decision analysis in the face of uncertainty or risk;

14.   Smoothing methods, trend projection, trend and seasonal components, and regression analysis in forecasting;

15. Qualitative approaches to forecasting: Delphi method, Expert judgement, Scenario Writing, and Intuitive approaches.

Homework Assignments and Proficiency Audits

You are required to submit three homework assignments and three proficiency audits which consist of the case problems located in the book as listed below. See the course schedule for due dates.

The homework assignments and proficiency audits will require the use of the computer software or other appropriate software approved by the instructor. For each case problem, you are required to develop a managerial report which consists of an appropriate combination of several of the following elements (as specified in the text): graphical representation of data; establishment of a decision tree; development of a model; development of a computer program; evaluation of alternative systems; synthesis of data; summary of findings; and the preparation of recommendations.

Homework Assignment #1

Production Strategy, Chapter 2, pages 80-82.

Homework Assignment #2

Environmental Protection, Chapter 4, pages 206-208.

Homework Assignment #3

Warehouse Expansion, Chapter 10, pages 475-476.

Proficiency Audit #1

A Make-or-Buy Analysis, Chapter 11, pages532-533.

Proficiency Audit #2

Property Purchase Strategy, Chapter 14, pages 688-689.

Proficiency Audit #3

Forecasting Lost Sales, Chapter 16, pages 788-789.

Grading Criteria for Homework and Proficiency Audits

Clear demonstration of ability to employ concepts, methods and techniques

20%

Logical and sequential development of results and recommendations

30%

Appropriate depth of analysis

20%

Appropriate organization and format

10%

Successful problem completion

20%

TOTAL

100%

INTRO TO MANAGEMENT SCIENCE
Author ANDERSON- 9TH
Edition

IINTRO TO MANAGEMENT SCIENCE (SOLUTIONS MANUAL) - Author ANDERSON- 9TH
Edition MANAGEMENT SCIENTIST: VERS 5.0 (W/CD-ROM) (P) - Author ANDERSON

Calculators Online Statistics Intro - source Operations Center

Week 1
Chapter 1

Class sites:
Rioux -
parsa

Business Statistics Center

Introduction

1. Practice Problems: 16-19 (Ch 1, pg 21-22)*;

DUE: 2. Student Introductory Assignment (SIA)
           3. Discussion question/topic posting & responses**

Week 2
Chapter 2
2. Linear Programming: Basic Concepts

Linear Programming I

Practice Problems: 2, 10, 14, 18 (Ch 2, pg 68-70)*

DUE: 1. Homework Assignment #1 (Production Strategy,   pg 80-82)

        2. Discussion question/topic posting & responses

Week 3
Chapter 3

3. Linear Programming: Formulation and Applications

Linear Programming II: Sensitivity Analysis and Interpretation of Solution

Practice Problems: 11, 12, 16, 19 (Ch 3, pg 124-30)

DUE: 1. Discussion question/topic posting & responses

Week 4
Chapter 4

4. What-If Analysis for Linear Programming

Linear Programming Applications

Practice Problems: 1, 4, 15, 19 (Ch 4, pg 192-200)

DUE: 1. Homework Assignment #2 (Environmental
Protection, pg 206-208)
          2. Discussion question/topic posting & responses

Week 5
chapter 7

Week 6
Chapter 10

5. Transportation and Assignment Problems

Transportation, Assignment, and Transshipment Problems

Practice Problems: 2, 8, 12, 18 (Ch 7, pg 343-52)

DUE: Discussion question/topic posting & responses

6. Network Optimization Problems

Project Scheduling: PERT/CPM

Practice Problems: 3, 6, 13, 21 (Ch 10, pg 466-72)

DUE: 1. Homework Assignment #3 (Warehouse
              Expansion, pg 475-476)

         2. Discussion question/topic posting & responses

Week 7
Chapter 11

7. Project Management with PERT/CPM

Chapter 10

Inventory Models

Practice Problems: 1, 15, 21, 25 (Ch 11, pg 525-29)

Due: 1. Proficiency Audit #1 (A Make-or-Buy Analysis, pg 532- 533)

DUE: 2. Discussion question/topic posting & responses

8. Beyond Linear Programming

8.1 Integer Programming
8.2 Separable Programming
8.3 Quadratic Programming
8.4 A Case Study-The Dewright Co. Goal-Programming Problem
8.5 Goal Programming
8.6 Summary

Glossary
Learning Aids for This Chapter in Your MS Courseware Problems

Case 8-1: Capacity Concerns
Case 8-2: International Investments
Case 8-3: Savvy Stock Selection
Case 8-4: A Cure for Cuba

Week 9
Chapter14

Week 10
Chapter 16

9. Using Binary Integer Programming to Deal with Yes-or-No Decisions

Decision Analysis
Practice Problems: 5, 8, 14, 22 (Ch 14, pg 675-83)

Due: Proficiency Audit #2 (Property Purchase Strategy, pg 688-689)

DUE: Discussion question/topic posting & responses

10. Decision Analysis

Forecasting

Practice Problems: 1, 5, 14, 25 (Ch 16, pg 778-84)

Due: 1. Proficiency Audit #3 (Forecasting Lost Sales,
            pg 788-789)

DUE: 2. Discussion question/topic posting & responses

Week 6

11. Inventory Management with Known Demand

11.1 A Case Study-The Atlantic Coast Tire Corp. (ACT) Problem
11.2 Cost Components of Inventory Models
11.3 The Basic Economic Order Quantity (EOQ) Model
11.4 The Optimal Inventory Policy for the Basic EOQ Model
11.5 The EOQ Model with Planned Shortages
11.6 The EOQ Model with Quantity Discounts
11.7 The EOQ Model with Gradual Replenishment
11.8 Summary

Glossary
Learning Aids for This Chapter in Your MS Courseware

Case 11-1: Brushing Up on Inventory Control

12. Inventory Management with Uncertain Demand

12.1 A Case Study for Perishable Products-Freddie the Newsboy's Problem
12.2 An Inventory Model for Perishable Products
12.3 A Case Study for Stable Problems-The Niko Camera Corp. Problem
12.4 The Management Science Team's Analysis of the Case Study
12.5 A Continuous-Review Inventory Model for Stable Products
12.6 Larger Inventory Systems in Practice
12.7 Summary

Glossary
Learning Aids for This Chapter in Your MS Courseware Problems

Case 12-1: TNT: Tackling Newsboy's Teachings
Case 12-2: (To be added later)

Week 7

13. Forecasting

13.1 Some Applications of Forecasting
13.2 A Case Study-The Computer Club Warehouse (CCW) Problem
13.3 Applying Time Series Forecasting Methods to the Case Study
13.4 The Time Series Forecasting Methods in Perspective
13.5 Casual Forecasting with Linear Regression
13.6 Judgmental Forecasting Methods
13.7 Forecasting in Practice
13.8 Summary

Glossary
Learning Aids for This Chapter in Your MS Courseware Problems

Case 13-1: Finagling the Forecasts

14. Queueing Models

14.1 Elements of a Queueing Model
14.2 Some Examples of Queueing Systems
14.3 Measures of Performance for Queueing Systems
14.4 A Case Study-The Dupit Corp. Problem
14.5 Some Single-Server Queueing Models
14.6 Some Multiple-Server Queueing Models
14.7 Priority Queueing Models
14.8 Some Insights About Designing Queueing Systems
14.9 Two Variations of the M/M/s Model
14.10 Economic Analysis of the Number of Servers to Provide
14.11 Some Award Winning Applications of Queueing Models
14.12 Summary

Glossary
Key Symbols
Learning Aids for This Chapter in Your MS Courseware Problems

Case 14-1: Queueing Quandary
Case 14-2: Reducing In-Process Inventory
Case 14-3: KeyCorp

Week 8

15. Computer Simulation

15.1 The Essence of Computer Simulation
15.2 A Case Study-Herr Cutter's Barber Shop (Revisited)
15.3 Analysis of the Case Study
15.4 Some Common Types of Applications
15.5 Outline of a Computer Simulation Study
15.6 Performing Computer Simulations on Spreadsheets
15.7 Summary

Glossary
Learning Aids for This Chapter in Your MS Courseware Problems

Case 15-1: Planning Planners
Case 15-2: Pricing Under Pressure

Supplements on the CD-ROM (packaged with the text)

16. Solution Concepts for Linear Programming

16.1 Some Key Facts About Optimal Sollutions
16.2 The Role of Corner Points in Searching for an Optimal Solution
16.3 Solution Concepts for the Simplex Method
16.4 Comoputer Implementation of the Simplex Method
16.5 The Interior-Point Approach to lSolving Linear Programming problems
16.6 Summary

Glossary
Learning Aids for This Chapter in Your MS Courseware Problems

Supplement to Section 7.2: The Procedure for Constructing a Project Network
Supplement to Chapter 9: Some Perspectives on Solving Binary Integer Programming Problems
Supplement to Chapter 10: Decision Criteria without Probabilities
Supplement to Chapter 14: Finite Queue and Finite Calling Population Variations of the M/M/s Model

Week 9

Week 10