Analytical Techniques

Beijing International Executive MBA, Class of 2012
December 2011

Professor Jonathan Eckstein

Last update time: Saturday, December 17, 2011 08:18:05 -0500
 

General Information and Links

• Syllabus
• Planned course schedule
   

Class 1 (Saturday) -- Introduction; Linear Optimization Models

• Blue Ridge Problem
  • Graphical view  (PDF format)
  • Interactive graph
  • Spreadsheet, data only
  • Spreadsheet model, completed
• Make-or-buy
  • Spreadsheet model
  • Spreadsheet model, "buy" variables substituted out
• Tropic Sun transportation spreadsheet
• Upton production spreadsheet
   
• Solutions to in-class problems are posted on BlackBoard (under "course documents")
   

Class 2 (Sunday) -- Integer and Nonlinear Optimization Models

• Introduction: Employee scheduling model
  • Spreadsheet model allowing fractions
  • Integer programming spreadsheet
• Binary variables: capital budgeting model
  • Basic spreadsheet model
  • Spreadsheet with additional logical constraint
  • Spreadsheet with second additional logical constraint
  • Spreadsheet with "carryover" of funds from year to year
• Assignment grids: Machinco spreadsheet model
• Milkem spreadsheet model
• Remington fixed charge problem
   
• Simple nonlinear model: EOQ spreadsheet
• Single product pricing spreadsheet
   
• See "Repaired for Take-Off", pages 31-36 of the course pack, for an example of a decision support system (DSS)
  
• Solutions to in-class problems is posted on BlackBoard (under "course documents")

• Assignment due in class on Tuesday:
  1. Consider the situation in Case 6.4 on pages 294-295 of the textbook
  2. You do not need to answer the question 4 or 5 in the textbook ( however, you may wish to think about question 5; I may show a solution in class)
  3. Hand in an algebraic formulation of the problem; assume, as mentioned in question 1 in the textbook, that it costs $0.10 to transport one cubic meter of snow one kilometer
  4. Solve the problem using Excel and Solver (this effectively answers questions 1-3 in the text)
  5. Also hand in your spreadsheet solution, carefully following the instructions on page 11 of the course pack.  The result should look like the spreadsheet exhibits in the course pack: one sheet showing the solution, and then a second version displaying all formulas, with annotations indicating the decision variables, the objective function, and all the constraints (but your annotations can be handwritten if you like).  I have limited time to grade the assignments, and if you do not follow the instructions, it will take too long
  6. Please hand in "hard copy" (paper); electronic submission is allowed only if you are traveling and have made prior arrangements with me (electronic submissions also take longer to grade)
  7. An Excel file containing the raw data for the problem is now available
      

Class 3 (Tuesday Night) -- Nonlinear and Multi-Objective Optimization Models, Introduction to Probabilistic Modeling

• Solutions and other material relating to the homework case will be posted on BlackBoard under the "course documents" section
   
• More realistic pricing problem (MULTIPRICING) spreadsheet
   
• Multiple objective example: Blackstone Mining
   
• Introduction to uncertain decision making and expected monetary value: hotel site spreadsheet  
   
• Practice material for the first exam, including solutions, is posted on BlackBoard (under "course documents") 
   

Class 4 (Thursday Night) -- First Exam, Decision Trees

• The first half of the class will be a 90-minute exam
  • See the practice material on BlackBoard
  • There will be a spreadsheet-format (but answered on paper) question in a similar format to those in the practice material.
  • There will be one algebra-format question in a similar format to those in the practice material
     
• Decision trees (these are created with TreePlan, but they can easily be drawn by hand)
  • ComTech grant proposal.
  • Colonial Motors (value of sample information)
  • Simple tree for discussion of risk
     
• Homework case assignment for Saturday  
  

Class 5 (Saturday) -- Bayes' Formula and Introduction to Simulation

• The first exam solution is available on BlackBoard
   
• The solution to the second homework case was be discussed in class, and is now on BlackBoard
    
• The Eagle Credit Union problem (problem 15.24, page 793 of the textbook) is analyzed on pages 58-60 of the coursepack
   
• Download the YASAI add-in (just save and do not open directly; then follow installation directions in the YASAI User Guide)
   
• Our first simulation example: the classic newspaper stocking problem
  • Just the data for the newspaper problem
  • Completed newspaper model
  • "Flaw of Averages" cartoon
     
• Piedmont Airlines example
  • Binomial random variables are described on page 69 of the coursepack
     
• Hiring translators in-class exercise
  • Template with only data and cell labels
  • The completed model will be posted after the excercise
     
• Poisson distributions:
  • The idea of Poisson distributions is described on pages 70-72 of the coursepack
  • Graphs demonstrating Poisson distribution as a limit of binomial distributions
     
• Another airline overbooking example model, but with Poisson demands and two classes of service
   
• The assignment for the last class is to read the North Star in the back of the course pack (it would take much too long to read in class)
• You should also study for the second exam.  Practice material is available on BlackBoard.
   

Class 6 (Sunday) -- More Simulation, Second Exam

• Practice material for the second test is posted on BlackBoard.  It is not as voluminous as for the first test (but on the other hand, you will not have that much time to study it, anyway)
   
• Power generation example demonstrating simulation with continuous random variables
   
• Time permitting: additional problem not in course pack
  • Insurance reserve capital problem
  • Insurance reserve capital spreadsheet
     
• An analysis of the North Star case (both by decision tree and simulation) is posted on BlackBoard
   
• Multi-period simulation models:
  • Inventory control
  • Repair shop problem
    • Word problem.  Note that there is an error in the coursepack: the story does not exactly match the spreadsheet.  Here is a more realistic version of the story that matches the spreadsheet.
    • Simulation spreadsheet
  • Belt replacement scheduling
     
• Demonstration of discrete-event simulation software
   
• Second exam 
   
• DONE!