QMBD-P08

QMBD-P08
PGDM 2008-10: TERM-V

Quantitative Models for Business Decision
(Elective: 3 credits)

Instructor: Prof. Surya Prakash Singh

Introduction

Objectives of the course to provide a formal quantitative approach to problem solving and to give an intuition for managerial situations where a quantitative approach is appropriate. In addition, this course also introduces some widely used quantitative models and software for solving such models. Besides this few case study will be also given to clearly demonstrate the application of quantitative models in real scenario.
Session-wise course outline

1. Linear Programming Problem (Session 1)
1.1. Linear Equations
1.2. Operations on Vectors and Matrices
1.3. Linear Combinations
1.4. Inverse of Square Matrix
1.5. Determinants
1.6. Positive definite Matrices

Readings:

· Course material
· Fundamental to Operations Research by Hillier and Liebermann

2. Non-Linear Programming Problem (Session 2, 3)
2.1. Basic Introduction to Linear Problem
2.2. Introduction to Non-Linear problem
2.3. Integer programming problem
2.4. Modeling Linear problem
2.5. Some well known LP model
2.5.1. Financial Portfolio
2.5.2. Production Over time
2.5.3. Work Force Planning
2.6. Using the solver (MS Excel/ Lingo student version)
2.7. Example of Non-Linear problem
2.7.1. Modeling Non-Linear problem
2.7.2. Method to solve Non-Linear problem
2.8. Some well known Non-Linear problem
2.8.1. Facility layout Problem
2.8.2. Warehouse allocation problem

Readings:

· Course material
· Fundamental to Operations Research by Hillier and Liebermann

3. Network Problem Modeling (Session 4, 5)
3.1. Introduction
3.2. Terminology
3.3. Examples
3.3.1. Shortest path
3.3.2. Maximum flow
3.3.3. Assignment problem

Readings:

· Course material
· Fundamental to Operations Research by Hillier and Liebermann

4. Analytical Hierarchy process (AHP) (Session 6)
4.1. Introduction
4.2. Consistency test
4.3. Normalization
4.4. Fundamental scale
4.5. Quantifying qualitative matrix
4.6. Examples and exercises

Readings:

· Course notes
· AHP by T.L. Saaty

5. Goal Programming (Session 7, 8)
5.1. Introduction to problem having more than one objective
5.2. Goal Programming
5.3. Solving the model

Readings:

· Course material
· Introduction to Management Science by Taylor

6. Decision-making heuristically (Session 9)
6.1. Introduction to problem having more than one objective
6.2. Goal Programming
6.3. Solving the model

Readings:

· Course material
· Literature available online

7. Theory of Constraint (TOC) (Session 10, 11)
7.1. Introduction to TOC
7.2. System complexity
7.3. Thinking process of TOC
7.4. Basic construct of TOC
7.5. Example of Causality
7.6. Example of necessity
7.7. TOC in business organization

Readings:

· Course material
· TOC by Goldratt

8. Game theory (Session 12)
8.1. Two person games
8.1.1. Pure strategies
8.1.2. Mixed Strategies
8.2. n-Person games

Readings:

· Course material
· Fundamental to Operations Research by Hillier and Liebermann

9. Decision Analysis (Session 13-14)
9.1. Components of decision making
9.2. Decision making without probabilities
9.3. Decision making with probabilities
9.4. Decision analysis with additional information
9.5. Utility

10. Forecasting models (Session 15)
10.1. Forecasting components
10.2. Time series method
10.3. Forecast accuracy
10.4. Time series forecasting using excel
10.5. Regression methods

Readings:

· Operations Research by Taha
· Fundamental to Operations Research by Hillier and Liebermann

Group Case Study and Presentation

11. Application of Mathematical Programming for optimal Allocation of Coking Coal: A Case Study
12. Can the Big 3 overtake Toyota? — A study based on the TOC, by Wu, Simon; Wang, Samuel; Blos, M. F.; and Wee, H.M., Journal of Advanced Manufacturing Systems, Dec2007, Vol. 6 Issue 2, p145-157, 13p.

Implementing TOC in a traditional Japanese manufacturing environment: The case of Hitachi Tool Engineering by Umble, M.; Umble, E.; Murakami, S,

International Journal of Production Research

, 5/15/2006, Vol. 44 Issue 10, p1863-1880, 18p.

13. A DEA based-balanced scorecard for measuring the comparative efficiency of the luxury Korean hotels by Hokey Min, Hyesung Min, Seong Jong Joo, International Journal of Quality and Reliability management, Vol. 25, Issue 4, 2008, 349-365, Emerald Publication.
14. A design strategy of reconfigurable manufacturing systems (RMSs) using AHP: a case study, International Journal of Production Research, Vol. 41, Issue 10, 2273-2299.

Case Report (Individual Submission)

Case on The Global Oil Company, Saudi Arabia.

Evaluation

Attendance and Class Participation: 10 Marks

Mid-Term 1: 30 Marks

Individual/Group Case Assignment: 10 Marks

Individual Case Report (to be solved): 20 Marks

End-Term: 30 Marks

Max. Marks: 100 Marks

Created By: Debasis Mohanty on 07/29/2009 at 12:21 PM
Category: PGDM-II Doctype: Document

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