OPIM 101 Management Science Outline

OPIM 101 Management Science Sem 2 2011/2012 1

Marcus Ang Office: Lee Kong Chian School of Business, Level 4, Room 4040 Tel: 6828 0703 Email: marcusang@smu.edu.sg
OPIM 101 Management Science Sem 2 2011/2012 2

OPIM 101 Management Science

What is management science (MS)?

Course Objective & Prerequisite & Textbook

Course assessment Important Dates

What you can expect from the course

OPIM 101 Management Science Sem 2 2011/2012

What is Management Science ?

With the intent of achieving desired ends, MS

workers then apply these results to problems in the reality from which the observations emerged.
A scientific approach to decision making, which seeks to determine how best to design and operate a system, usually under conditions requiring the allocation of scarce resources. It is also known as Operations Research.

OPIM 101 Management Science Sem 2 2011/2012

MS methods

Examples of MS Applications

Optimization Linear programming Nonlinear programming Combinatorial optimization Dynamic programming Network/transportation Scheduling Forecasting Game theory Stochastic modelling Markov chains Queueing Simulation

Capital budgeting Portfolio optimization Risk management Credit scoring Option pricing Patient flow modelling Supply chain optimization Marketing channel optimization Campaign optimization Production planning Facility location Vehicle routing Inventory management
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OPIM 101 Management Science Sem 2 2011/2012

Other examples: Source: http://www.scienceofbetter.org/

Continental Airlines applied OR to revise crew

schedules during the Sept. 11 terrorist crisis. The savings were estimated at $40 million in 2001 alone.
AT&T applied OR to plan emergency rerouting of

voice, data, wireless and satellite communication systems. Efficient allocation of resources won customer loyalty, increased revenue and saved hundreds of millions of dollars.

OPIM 101 Management Science Sem 2 2011/2012

Other examples:
Samsung used OR to reduce manufacturing times to

capture an additional $1 billion in sales of semiconductor devices.

Using OR, UPS redesigned its overnight delivery

network, saving $87 million and projecting an additional $189 million savings over the following decade.
National Broadcasting Company (NBC) applied OR

to improve advertising sales plans, increasing revenues by some $200 million.

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Course Objective
This module introduces students to some of the basic

concepts and methods of management science. There is a strong focus on quantitative models:
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how they are created how they are used what kinds of insights they provide the critical importance of managerial judgment in utilizing those insights.

Computer applications, including the use of spreadsheets and of many popular special-purpose software packages, are integrated throughout the module.
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Prerequisite :
Students are assumed to have basic knowledge of probability,

including familiarity with concepts such as: expected value, variance, Poisson and Normal distributions, and conditional probabilities.
Prior Working knowledge of Microsoft Excel is helpful, but NOT

necessary. There will be one session for learning excel solving. Excel will be used in assignments. No laptops are allowed in midterm/final exams, hence excel is not used. However, interpretation of the excel results is tested.
Knowledge of matrix algebra and computer programming not

assumed.

OPIM 101 Management Science Sem 2 2011/2012

OPIM101 Management Science

Introduction to Management Science: Global Edition 10th ed
Author ISBN : Bernard W. Taylor : 9780132457576

Publisher : Pearson

Companion Website http://www.pearsonhighered.com/taylor

Now available at SMU Booklink!

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Questions on Textbook
I have the 9th Edition Taylor. Is it sufficient?

How about the Online version of the

textbook? Where can I purchase the textbook? Are there any cheaper alternatives other than purchasing the textbook? Any disadvantages?

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Tuesday, Jan 24th is a holiday. The makeup class is officially on Sat 4th Feb.

Tentative Schedule
Term Week 1 2 3 4 5 6 7 Term 1 8 9 10 11 12 13 14 15 Final Exam Tues. 24/1, 0830-1030 Intro to MS, Modelling LP: Graphical Analysis LP: Solving with Excel Integer Program Network Models Network Flow MIDTERM RECESS Network 2/ Newsvendor Decision Analysis Project Management Project Management Exam Review Schedule Intro to LP LP: Sensitivity Analysis Excel Practice Assign Review Assign Review Midterm Review MIDTERM RECESS Assign Review Decision Analysis Assign Review Assign Review Exam Review Exam Preparation Chp 16 Chp 12 Chp 13 RECESS Reading Materials Chp 2,3,4 Chp 2,3,4 Chp 2,3,4 Chp 5 Chp 6,7 No Classes on Tues, 24/1. Make up for Tues on Sat 4th Feb Event Week 9-Jan-12 16-Jan-12 23-Jan-12 30-Jan-12 6-Feb-12 13-Feb-12 20-Feb-12 27-Feb-12 5-Mar-12 12-Mar-12 19-Mar-12 26-Mar-12 2-Apr-12 9-Apr-12 16-Apr-12

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Lecture Style
There will be a break of 10-20min every

45min to 1 hour of lecture.

Tuesday - 12pm to 3:15pm, 7pm to 10:15pm Wednesday - 7pm to 10:15pm Thursday - 12pm to 3:15pm, 7pm to 10:15pm

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ASSESSMENT METHOD
Homework Assignments: 20%
Class Participation: 10% Midterm Exam: 30%

Final Exam: 40%

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Assignments
6 homework assignments.

A hardcopy of the assignment is to be submitted.

Late submission will be penalized. Penalty depends on the situation. For example, there is a 100% penalty if you submit the assignment 1 just before the final exam.

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Collection of Assignments
It is your responsibility to inform me if you did

not receive your graded assignment after the assignments are given out.
Eg. There will NOT be any verification of marks if you tell me your assignment 1 is missing (due before 3rd week) on week 11.
Do NOT misplace your assignments. They might be used to verify your final grade for Assignment.
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Class/Course Participation
Grading is like A BLACK BOX and challenging to me!

A more transparent grading procedure:

Point out mistakes during lecture which will affect the underlying theory/concepts. Ask constructive questions in class. Answer questions in class Attend Lecture regularly Seldom attend classes

Good

Average grade

Skip mid-term/ final exam

Poor

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Class/Course Participation
If you have made any form of contribution

during class, email me during that week.

It is your responsibility to remind me. Title of email: Class Participation

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MID Term Exam

To be scheduled on lecture 7 (lecture time).

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Final Exam
Important dates to remember

th 24

April 2012, 8:30am 10:30am

Venue to be decided by RO

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Final Grade
Based on the components as mentioned. The final grade is based on relative marks.

The absolute grade is not important.

It is possible that Components A+,A+,A+,A+ but final grade is A, or Components B,B,B,B but final grade is A

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How do I do well for the course?

Do Assignments. The assignments are the bare minimum that

you should know to pass the course.

Clear any doubts as early as possible. Approach me or TAs for

any clarifications.

Kennie ONG Zhi Hao Vanessa NEO Siok Ting GOH Chin Yan VUONG Thi Thanh Van TOK Pei Yi

Understand the concepts. Memorizing the answers is not

advisable.
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Consultation Hours
Wednesday 2pm-330pm. (tentative) Feel free to email me any questions. In your

email, cc to your assigned TA.

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FAQ
I will upload a file with frequently asked questions. You will find questions which I have answered over

emails in the file.

Check it before you send me any questions as your

question may have been answered in the file.

More Effective!

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What You Can Expect From The Course

Gain an overview of Management Science Understand some of the important ideas and

techniques in Management Science Formalize our intuition Acquire framework to formulate problems Appreciate the spreadsheet as a useful tool for problem solving
Overall, should be a solid but not overly tough course

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Questions?

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