Course Title: Analytical Models for Operations and Supply Chain

Offered in Term-V of PGP at IIM Udaipur

Instructor: Rahul Pandey

Course Objective:

The objective of the course is to learn practical skills of modelling real-world problems of operations and
supply chain and applying them using software tools to support managerial decision-making. The course
will expose students to the process of structuring selected decision problems using techniques of
statistics, optimization and simulation; modelling them using well established software tools such as MS
Excel, R, Python, and GAMS/CPLEX; and carrying out decision analysis.

A limited but diverse set of decision problems has been selected for this purpose. The problems cover a
range of decision applications useful for manufacturing and service organisations, and are relevant at the
levels of operational execution, tactical planning and strategy.

The course aims to equip the students with applied modelling and analysis skills relevant for operations
and supply chain decisions in industries. These skills are valued by both user industries and consulting
organisations.

Pedagogy:

The course will begin with providing a quick overview of the concepts of statistics and optimization and
an introduction to selected modelling software tools that are widely used in industry.

Thereafter, every decision problem will be covered over two sessions. Broadly speaking, the first session
will deal with conceptual understanding of the problem, a flavour of its real-world applications, the
process of structuring and modeling it for analysis, and the issues of data preparation/collection. The
second session will involve modelling the problem using one or more software tools. Time permitting, the
second session will also attempt to cover partial steps of the process of decision analysis using the tools.

In the regular classroom sessions the students will learn the process of modelling the decision problems
and practice data handling and modelling using software. In certain sessions, partial datasets and partial
code templates will be provided to guide the students through the structured process of modelling and
analysis. Some of the in-class exercises will extend into post-class assignments which students will carry
out in groups and submit outputs.

In addition, students will carry out a group project. The project will entail going through the process of
structuring a decision problem of operations and/or supply chain, preparing representative data,
modelling the problem using one or more of the software tools learnt in the course, and carrying out
partial scenario analysis.
Evaluation:

Small assignments of modelling/analysis (group assessment): 20%

Quizzes (individual assessment): 20%

Project (group & individual assessments, presentations): 40%

Exam (individual assessment): 20%

Tentative Outline:

Sessio Topic Content Reading/ Exercise/

n# Activity
(to be decided)
1 Introduction to Statistical methods
modelling techniques R, Python, MS Excel
2 and software/modeling Optimization methods
tools; GAMS/CPLEX, Python, MS Excel
Process of
developing/using a
decision making tool for
managerial analysis
3 Demand Planning: Forecasting: time-series and
Forecasting regression models
4 Practice modelling with software
5 Demand Planning: Pricing & revenue management
Pricing models
6 Practice modelling with software
7 Process Quality Control Statistical process quality control
& Six Sigma techniques
Six sigma process capability
8 Practice modelling with software
9 Process Capacity & Waiting line models (queuing theory)
10 Design under Practice modelling with software
Variabilities;
Design of Service Systems
11 Interface between Inventory replenishment models
12 Demand & Supply Practice modelling with software
Planning:
Inventory
Replenishment & Order
Generation
13 Operational/Tactical Vehicle route planning models
Supply Planning & Fleet sizing & mix models
14 Execution-1: Order- Practice modelling with software
Vehicle Assignment &
Route Planning
15 Operational/Tactical Multi-period models for plant-
Supply Planning & warehouse-market allocations, mode-
Execution-2: S&OP, mix, end-of-period stock building, and
Supply allocations, sales planning;
 mode-mix planning,
procurement planning
16
17 Strategic Supply
Planning: Network
Design, Expansion,
18 Consolidation
19 Compliance Analysis &
Performance Metrics
20 Project presentations
Models for inbound (procurement)
allocations
Practice modelling with software
Network design models
Models for investments in facilities’
location, capacity and technology
Practice modelling with software
Compliance analysis, performance
metrics calculations, managerial
reports and visualization
Student groups present the decision
making tools they develop during the
course

A few of the topics mentioned in the above outline could be replaced with other topics based on the
feedback on which topics have been extensively covered in other courses from the viewpoint of
modelling and analysis.

In addition to the above formal schedule, two extra tutorial sessions will be held with the purpose of
quick revision of the techniques and tools of statistics and optimization.

Project:

The course includes a group project involving development of a decision-making tool for a problem of
operations and/or supply chain based on one of the modelling techniques learned in the sessions. The
tool must be tested with representative data and managerial analysis carried out. Every group must
demonstrate its understanding of the technique and software tool and their application to a real-world
decision problem. Deliverables of the project work are a presentation in the final session and submission
of the software tool/model developed in the project along with partial decision analysis with
sample/representative data.

Pre-requisites for the course:

Students registering for this course are expected to have taken the basic courses in operations
management, supply chain management, quantitative methods (statistics, optimization, decision
analysis), and information systems. Students are also expected to be comfortable with MS Excel or
equivalent spreadsheet tools. Although no prior knowhow/working experience with modelling software
such as R, Python and GAMS/CPLEX is mandatory, the students are expected to be willing to invest extra
hours outside the formal sessions to learn and work with some of these software during this course.