OPR 320 Linear Models for Decision Making

Syllabus
Fall 2015-16
(Revised September 16th)
Class Meets:

Tuesdays and Thursdays 4:00pm - 5:50pm, 219 G Hall

Instructor:

Dr. Oben Ceryan

Email:

[email protected]

Office Hours:

Tuesdays and Thursdays: 2:00pm - 3:00pm

Office:

738 G Hall

Course Description:
In this course, we will be surveying a variety of quantitative methods in Management Science
and Operations Research. We will formulate mathematical models to represent real-life
optimal decision problems related to a wide range of industries and functional areas and study
how to obtain the best decisions. Mathematical rigor will be required, but the main focus will
be on applications, modeling, and decision-making rather than computational details. This
course is designed
1. To give you a comprehensive understanding of some basic Operations Research /
Management Science (OR/MS) approaches, how they may be used as decision making
tools and their limitations;
2. To familiarize you with the art and science of model building to provide you with skills
to dissect and find structure in complex managerial problems;
3. To enable you to interpret mathematical solutions of models and transform numbers
into managerial decisions;
4. To enable you to communicate meaningfully with other OR/MS specialists, such that
your inputs are identified and fully utilized in situations that warrant such teamwork.
Learning objectives:
Upon completion of this course, a student should be able to
Analyze a business decision-making scenario to identify the objective(s), the
constraints, and any necessary data.
If appropriate, identify that the problem can be handled as a linear optimization
problem. If not, investigate if the problem can be reduced to such a model in a
satisfactory manner.
Build the linear optimization model corresponding to the problem components
identified above and solve it by hand or using an appropriate software tool.
Interpret the results of the linear optimization model and analyze their
implementability.

Textbooks: The text is strongly recommended for further reading on course topics but
purchase is optional.
An Introduction to Management Science: Quantitative Approaches to Decision Making, by
Anderson, Sweeney, Williams, 13th or 14th Edition. (13th Edition is available in library
reserves for a 3-hour loan, 14th Edition is available in the bookstore for purchase.)
Course Website: Accessible through http://learn.drexel.edu. Students are responsible for
checking the course website regularly for announcements, class notes, assignments and
supplementary materials.
Software: The course will involve extensive use of Microsoft Excel including its Solver Add-in.
To install the Solver Add-in, please refer to the instructions available in the course website.
Homework Assignments: There will be five homework assignments. You may collaborate on
homework assignments with up to two other classmates, but each student should write up his
or her own individual solutions. The important part of mastering Operations Research /
Management Science is setting up the models and solving the problems contained in
assignments. These are designed for you to practice what you have learned in class and
develop a better understanding of the material. Therefore, even though you may work in
groups, I strongly suggest you try to solve all the problems first on your own and then discuss
with your classmate(s). Since most of you are exposed to mathematical modeling and
optimization for the first time, I do not expect your answers to homework questions to be
perfect but they should show a level of thought and understanding of the material. The
assignments will be graded on a check minus, check, and check plus basis.
The homework with the lowest grade will be dropped from the final grade calculation. As
solutions will be posted immediately after the due date, no late homework will be accepted.
Exams: There will be two exams consisting of both quantitative and qualitative questions
related to the lectures, discussions, and assignments of the course. Exams will be closed notes
and books, but you will be allowed to prepare and bring your own cheat sheets. Students are
responsible for making sure they appear for the exams on time. In case you are unable to take
the exams due to an emergency, the instructor must be notified before the exam with
documented proof. In such cases, a make-up exam may be rescheduled if deemed appropriate.
Students who fail to take exams without prior permission from the instructor, will not be given
any make-up exams.
Term Project: In this course, each group consisting of four students will work on a Term
Project. The objective of the project is to develop skills to apply optimization models to
support business decisions. In particular, you will get experience in formulating LP models,
solving them with Excel, interpreting the computer outputs and developing policy

implications. The project topic as well as submission guidelines will be announced after the
first exam. No discussion of the project is permitted with anyone outside your team. If you
have questions in analyzing the project, you should come to see the instructor during office
hours. You should not seek for help on the project from any other channels (including other
project groups, senior students, and other websites). The project reports will be due the last
day of class.
The grading criteria for the Final Project is as follows:

Report/Modeling/Analysis: The main emphasis of the grading will be on the clarity

and depth of your analysis, correctness of your model, demonstration of a good
understanding of LP concepts and tools and their interpretations for recommendations.
Self and Peer Evaluation: All team members need to actively participate in the project.
Individual project grades may be adjusted up or down based on self and peer
evaluations.

Class Participation: The best way to learn quantitative concepts is through hands-on problem
solving. Thus, this course will require extensive student participation in discussions and
computational exercises. It is advised that you read the assigned material before coming to
class to make the best use of the period. You are encouraged to ask questions, make
observations, and answer questions posed by the instructor. If you have any additional
questions, you are always welcome in my office hours. It is important to seek help as early as
possible if you experience any difficulty with any of the concepts.
Additional Accommodations: If you require additional accommodations, please see the
information on: http://www.drexel.edu/oed/disabilityResources
Academic Honesty: Please review carefully the Academic Policies at:
http://drexel.edu/studentaffairs/community_standards/studentHandbook
Students are not permitted or authorized to post or redistribute any of the course materials.
If you have any questions about the policies on academic honesty, please feel free to contact me
or the corresponding members of the administration.

Grading: The course grade is composed of:

- Class Participation: 5%
- Assignments: 20%
- Exams (30% each): 60%
- Term Project: 15%
The letter grading scale will roughly follow: A-range: 90-100%, B-range: 80-90%, C-range: 7080%, D-range: 60-70%. The distribution of plus and minus grades within each letter grade
category are at the instructors discretion. Similarly, the exact boundaries between adjacent
letter grades may be slightly higher or lower depending on the overall class performance.
Tentative Course Schedule: The following table (continued on the next page) lists a lectureby-lecture outline of the entire course. The learning objectives, corresponding readings and
assignments for each lecture are listed.
Class, Date

Topics and Learning Objectives

Additional
Reading Chapter #

(1) Tue 09/22

Course Overview and Introduction

(2) Thu 09/24

Introduction to Linear Programming,

Graphical Solution Procedure Part 1

[ASW] Ch. 2

(3) Tue 09/29

Introduction to Linear Programming,

Graphical Solution Procedure Part 2

[ASW] Ch. 2

(4) Thu 10/1

Linear Programming with Excel Solver

[ASW] Ch. 2

(5) Tue 10/6

Sensitivity Analysis and Interpretation of

Solutions Part 1

[ASW] Ch. 3

(6) Thu 10/8

Sensitivity Analysis and Interpretation of

Solutions Part 2

[ASW] Ch. 3

(7) Tue 10/13

LP Applications Part 1 Marketing

[ASW] Ch. 4

(8) Thu 10/15

LP Applications Part 2 Operations

[ASW] Ch. 4

(9) Tue 10/20

LP Applications Part 3 Finance

[ASW] Ch. 4

(10) Thu 10/22

Review for First Exam

(11) Tue 10/27

Exam 1

Assignment
due

[ASW] Ch. 1-2

HW #1 due

HW #2 due

HW #3 due

Covers Sessions
1-9

Class, Date
(12) Thu 10/29
Tue 11/3

Topics and Learning Objectives

Network Models Part 1

Additional
Reading Chapter #
[ASW] Ch. 6

No Class (Instructor at INFORMS

Conference)

(13) Thu 11/5

Network Models Part 2

[ASW] Ch. 6

(14) Tue 11/10

Advanced LP Applications Part 1 Revenue

Management

[ASW] Ch. 5

(15) Thu 11/12

Advanced LP Applications Part 2 Game

Theory

[ASW] Ch. 5

(16) Tue 11/17

Integer Linear Programming Part 1

[ASW] Ch. 7

(17) Thu 11/19

Integer Linear Programming Part 2

[ASW] Ch. 7

Tue 11/24

No Class (rescheduled classes due to Papal

visit)

Thu 11/26

No Class (Thanksgiving Break)

(18) Tue 12/1

Duality, Goal Programming & Multi-criteria

Decisions

(19) Thu 12/3

Review for Exam 2, Course Overview,

Epilogue

TBD
(Finals Week)

Assignment
due

Exam 2

[ASW] Ch. 14, 18

HW #4 due

Mid Project
Report due

HW #5 due

Final Project
Report Due
Covers (mainly)
Sessions 12-18

I will attempt to adhere to this schedule as much as possible, though I may modify the contents
of the sessions depending on the evolution of the course. Sufficient notice will be given for any
changes.