AMI 4103 OPERATIONS RESEARCH AND MANAGEMENT

Course Name: Operations Research and Management

Course Code: AMI 4103, Done in Semester I
Credit Units: 3(LH=30, TH=30 hence CH=45)

Prerequisite courses: None

Course Objective:
Introduce students to some of the techniques, methodologies and models used in operations
research.

Course Description:
Overview of operations research; Introduction to linear programming; The simplex method;
transportation model and its variants; network models; Integer linear programming; Forecasting
models, Decision analysis, simulation modelling

Learning outcomes:
At the end of this course, the learner should be able to:
 Appraise projects using investment appraisal methods
 Determine value of engineering assets (plant & machine)
 Determine when to investment
 Understand the income/tax structure of Uganda

Methods of course delivery:

This course will be conducted through;
i) lectures and discussions
ii) self-study assignments
iii) case studies and group discussions

Assessment Criteria
Assessment will be done through;
i) Coursework
 Assignments 10%
 Tests 30%.
ii) A written examination, 60%

Pedagogical Structure
Element Time
1.0 Overview of operations research 2 hours
1.1 Mathematical operations research models
1.2 Operations research techniques
1.3 Simulation modelling
2.0 Introduction to linear programming (LP) 4 hours
 Construction of LP model
Graphical LP solution
Graphical sensitivity analysis
3.0 The simplex method 4 hours
3.1 Standard LP form and its basic solutions
3.2 The simplex algorithm
3.3 Artificial starting solution
4.0 The transportation model and its variants 4 hours
4.1 Definition of the transportation model
4.2 The transportation algorithm
4.3 The assignment model
4.4 The transhipment model
5.0 Network models 4 hours
5.1 Network definitions
5.2 Minimal spanning tree algorithm
5.3 Shortest route problem
5.4 Maximal flow model
5.5 Minimum cost capacitated flow problem
5.6 CPM and PERT
6.0 Forecasting models 4 hours
6.1 Moving average technique
6.2 Exponential smoothing
6.3 Regression
7.0 Decision analysis 4 hours
7.1 Decision environments
7.2 Decision making under certainty
7.3 Decision making under risk
7.4 Decision making under uncertainty
8.0 Simulation modelling 4 hours
8.1 Monte Carlo Simulation
8.2 Types of simulation
8.3 Elements of discrete event simulation
8.4 Generation of random numbers
8.5 Mechanics of discrete simulation
8.6 Methods for gathering statistical observations
9.0 Computer laboratories 30 hours

Suggested Reading
a) Winston, Albright, 2001; Practical Management Science. Thomson Learning.
b) Hamdy A. Taha (2006): Operations Research: An Introduction, 8th Edition. Prentice Hall
International, Inc.
c) Hillier, F. S. and Lieberman, G. J. 2010, Introduction to Operations Research, 9 th edn,
McGraw-Hill
d) Philip M. Morse (2007): Methods of Operations Research. Kormendi Press;
e) Revinchen, A., Phillips, D.T. and Solberg, J.J. (2007) "Operations Research-Principles and
Practices" 2nd edition. John Willey and Sons, New-York.
f) Winston, W. L. 2004, Operations Research: Applications and Algorithms, 4th edn, Thomson
g) Taha, H. A. 2007, Operations Research, 8th Edition, Pearson