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# COURSE STUDY GUIDE OF MANAGEMENT SCIENCE

COURSE INTRODUCTION

This course is an introduction to the basic theory underlying Management Science and
Operations Research. It focuses on linear programming, the fundamental concepts, and
algorithms. Applications drawn from different functional areas of business will also be
presented. In particular, the course will cover a variety of applications of management science
in the areas of finance, marketing, and production such as capital budgeting, optimal sales
allocation, and scheduling and distribution. Special cases of linear programming problems, such
as the transportation problem and assignment problems will also be studied

COURSE OUTLINE

WEEK TOPIC
1 Introduction to Decision Theory
 Problem Solving and Decision Making
 Introduction to Quantitative Analysis
 Models of Cost, Revenue and Profit

## 2 Introduction to Linear Programming

 Maximization and Minimization Problems
 Graphical Solution Procedure
 Formulating Spreadsheet Models

## 3 Linear Programming: Sensitivity Analysis

 Sensitivity Analysis
 More Than Two Decision Variables

## 4 Linear Programming Applications

 Marketing Applications
 Financial Applications
 Production Management Applications
 Blending Problems
 Simplex Method

## 5 Transportation, Assignment and Transshipment Problems

 The Transportation Problem
 The Assignment Problem
 The Transshipment Problem

6 Network Models
 Shortest-Route Problem
 Minimal Spanning Tree Problem
 Maximum Flow Problem

## 7 Project Scheduling: PERT/CPM

 Project Scheduling with known Activity Time
 Project Scheduling with Uncertain Activity Times

## 8 MID TERM EXAM

9 Project Scheduling: PERT/CPM Contd.
 Project Scheduling with Uncertain Activity Times
 Considering Time-Cost Trade Offs

## 10 Waiting Line Models

 Structure of a Waiting Line System
 Single-Channel, Multiple-Channel
 Economic Analysis of waiting Lines

11 Simulation
 Risk Analysis
 Inventory Simulation
 Waiting Line Simulation

12 Decision analysis
 Structuring the Decision Problem
 Decision Making with and without Probabilities
 Decision Analysis with Sample Information
 Computing Branch Probabilities

13 Multi-criteria Decisions
 Goal Programming
 Scoring Model

## 14 Multi-criteria Decisions Contd.

 Analytic Hierarchy Pro (Tulsian & Pandaey, 2004)ess
 Using AHP to Develop an Overall Priority Ranking

15 Forecasting
 Component of Time Series
 Smoothing Methods
 Trend Projection
 Trend and Seasonal Components.
16 Markov Processes
 Market Share Analysis
 Account Receivable Analysis
FINAL TERM EXAM

READING

Week 1
Introduction to Decision Theory
Key readings
(2009). An Introduction to Decision Theory. In D. R. Anderson, D. J. Sweeney, & T. A. Williams,
An Introduction to Management Science (pp. 3-18).

Week 2
Introduction to Linear Programming
Key reading
(2009). An Introduction to Linear Programming. In D. R. Anderson, D. J. Sweeney, & T. A.
Williams, An Introduction to Management Science (pp. 31-60).
(2004). Linear Programming. In P. C. Tulsian, & V. Pandaey, Quantitative Techniques (pp. 1.1-
1.57).

Week 3
Linear Programming: Sensitivity Analysis
Key reading
(2009). Linear Programming Sensitivity Analysis. In D. R. Anderson, D. J. Sweeney, & T. A.
Williams, An Introduction to Management Science (pp. 96-122).

Week 4
Linear Programming Applications
Key reading
(2009). Linear Programming Applications. In D. R. Anderson, D. J. Sweeney, & T. A. Williams, An
Introduction to Management Science (pp. 153-168).

Week 5
Transportation, Assignment and Transshipment Problems
Key reading
(2009). Transportation, Assignment and Transshipment Problems. In D. R. Anderson, D. J.
Sweeney, & T. A. Williams, An Introduction to Management Science (pp. 306-350).
(2004). Assignment Problem. In P. C. Tulsian, & V. Pandaey, Quantitative Techniques (pp. 4.1-
4.43).
(2004). Transportation Problem. In P. C. Tulsian, & V. Pandaey, Quantitative Techniques (pp.
5.1-5.24).
Week 6
Network Models
Key reading
(2009). Network Models. In D. R. Anderson, D. J. Sweeney, & T. A. Williams, An Introduction to
Management Science (pp. 428-446).
Course Study Guide for Management Science cont’d 7

Week 7
Project Scheduling: PERT/CPM
Key reading
(2009). Project Scheduling: PERT/CPM. In D. R. Anderson, D. J. Sweeney, & T. A. Williams, An
Introduction to Management Science (pp. 306-350).
(2004). PERT. In P. C. Tulsian, & V. Pandaey, Quantitative Techniques (pp. 7.1-7.4).

Week 9
Project Scheduling: PERT/CPM Contd.
Key reading
(2009). Project Scheduling: PERT/CPM. In D. R. Anderson, D. J. Sweeney, & T. A. Williams, An
Introduction to Management Science (pp. 306-350).
(2004). Cretical Path Method (CPM). In P. C. Tulsian, & V. Pandaey, Quantitative Techniques
(pp. 6.1-6.70)
(2004). Crashing, Resource Allocation and Smoothing. In P. C. Tulsian, & V. Pandaey,
Quantitative Techniques (pp. 8.1-8.41).

Week 10
Waiting Line Models
Key reading
(2009). Waiting Line Models. In D. R. Anderson, D. J. Sweeney, & T. A. Williams, An Introduction
to Management Science (pp. 306-350).
(2004). Queueing Theory. In P. C. Tulsian, & V. Pandaey, Quantitative Techniques (pp. 9.1-9.8).

Week 11
Simulation
Key reading
(2009). Simulation. In D. R. Anderson, D. J. Sweeney, & T. A. Williams, An Introduction to
Management Science (pp. 585-619).
(2004). Simulation. In P. C. Tulsian, & V. Pandaey, Quantitative Techniques (pp. 11.1-11.8).

Week 12
Decision Analysis
Key reading
(2009). Decision Analysis. In D. R. Anderson, D. J. Sweeney, & T. A. Williams, An Introduction to
Management Science (pp. 306-350).
(2004). Decision Tree. In P. C. Tulsian, & V. Pandaey, Quantitative Techniques (pp. 12.1-12.2).
Week 13 & 14
Multicriteria Decisions
Key reading
(2009). Multicriteria Decisions. In D. R. Anderson, D. J. Sweeney, & T. A. Williams, An
Introduction to Management Science (pp. 712-742).

Further reading
Analytical Hierarchical Process http://www.youtube.com/watch?v=18GWVtVAAzs

Week 15
Forecasting
Key reading
(2009). Forecasting. In D. R. Anderson, D. J. Sweeney, & T. A. Williams, An Introduction to
Management Science (pp. 758-784).

Further reading
Forecasting http://www.youtube.com/watch?v=DVEbZ__FNRg&feature=related
Time series Analysis http://www.youtube.com/watch?v=cC2kE2RcN68

Week 16
Markov Processes
Key reading
(2009). Markov Process. In D. R. Anderson, D. J. Sweeney, & T. A. Williams, An Introduction to
Management Science (pp. 808-821).