Course Description:  Introduction to quantitative methods used in business decision making.  Topical coverage includes mathematical programming, inventory models, critical path methods, decision theory, waiting lines, design of experiments, and other chosen topics.  Computer software will be used to analyze application problems in business and economics.  Prereq: Computer Science 201, Management 310.  Same as IE 312.

Course Text and Recommended Material:
(1)   Quantitative Methods for Business,  8th Edition,  Anderson, Sweeney, and Williams,  South-Western Publishing Company.
(2) Management Scientist Version 5 Software.

Course Objectives:
(1) To present the basic mathematical techniques used in operations research and managerial decision making.
(2) To develop the student's ability to realize that decision making doesn't have to be only intuitive but can be supplemented with the collection and analysis of quantitative information.
(3) To develop a student's ability to realize that quantitative methods can be useful in many areas of management and marketing and is in fact one of the most valuable tools available to managers.

Grading:  Grades will be assigned as follows:
         A    90% and above
         B    80% to 90%
         C    70% and above
         D    60% and above
         F    below 60%

The following weights on materials can be anticipated:
   Chapter Tests will comprise 70% of the grade.
   In Class Participation 10%
   Final Exam:  20%
 

Class Attendance Policy:  Class will be taken each day precisely at the scheduled starting time.  Each absence over 2 absences will reduce your final grade by 2 points per absence while each late will reduce your final grade by 1/2 point.

Management 312 Course Schedule Sheet

   for Instructor Questions

FAX: (731) 587-7231

Office Hours:  Call my office any day and leave a message.  I will return your call.  Better yet, send me an e-mail and I'll
answer hopefully within 24 hours. Another very profitable alternative is to post your questions to the Blackboard.com Communications button on the internet.  Try going to www.blackboard.com and typing in Mgt312 and register for the course.  You will find information about the course at this web site.   Included under the Communications Button is a button for e-mail communication.  This button will allow you to select a communication medium - either to a person individually or to the class as a whole.   Using this vehicle,  you can be in contact with the other students in the class.  They may be able to answer your question.  As the instructor, I will be monitoring the blackboard information and correct any faulty information.  Note:  If you have questions spectifically for me about an assignment or something of a particular nature, e-mail me directly and do not use the class communication selection.

CLASS SESSION #1, 2 and 3.  Introduction to Management Science

In class periods #1 and 2,  several items will be on the agenda.  A listing of the items is as follows:
    1.  The class web page will be introduced.  You will be able to access most information from the web page.
    2.  The class organization shell and communication network called Blackboard. com will be introduced.  Students will register for the class using Blackboard.com while in class.
   3.  Some introductory comments will be made about Management Science.  The outline of these general comments can be found in the link for Class #1.
    (a) A brief history of Management Science will be introduced.
    (b) The basic concepts of problem definition and decision making will be introduced.  The Kepner Tregoe method of problem definition as found in the New Rational Manager will be outlined and the class will divide into groups to analyze a sample case.
    (c) Some simple quantitative classroom problems will be worked as an introduction.
    (d) Then,  the class will examine how to program a simple problem in Microsoft Excel. Use the Nowlin Plastics link to perform your in class exercise.
    (e) Finally,  the class will take an ON LINE test on Chapter 1 using Blackboard.com to test your general comprehension of the material.
 

CLASS SESSION #4.  Introduction to Linear Programming - A Simple Maximization Problem and the Graphic Method

Linear programming and its solution with the simplex method is one of the most famous of the "quantiative tools" referenced in management science literature.  In practice,  some important categories of problems are rountinely solved using standard linear programming forumulations,  for example, every barrel of crude oil in the world is broken down into its contituents parts (gasoline, kerosene, aviation fuel, etc.) based on a standard linear programming formulation and module.  Most every "investment portfolio" from a mutual fund is handled similarly.  Although students and most managers will most likely seldom be required to write a real world formulation,  the knowledge of how optimization works based on constraints is necessary for all managers to experience so that more logical decisions can be made in everyday managerial practice.  Several links are the internet were found to examine linear programming in detail in addition to the text material:  An Introduction to LP  and
What is Linear Programming?

Most all linear programming formulations are solved using the simplex algorithm developed by George Dantzig.  However,  today that algorithm has been computerized.  During this course,  we will be using the computer program called The Management Analyst 5.0 which accompanies the textbook. By clicking on the link, you will be able to download the program and save it in a file on your hard drive.  Once that is completed, go to the start button, and go to run.  Then find the saved program and follow the instructions.   Additionally, the class will cover Excel Spreadsheets and how to solve the programs using Excel.

In Chapter 2 of Anderson, Sweeney and Williams,  the PAR COMPANY is introduced as an example of simplistic linear programming formulation and solution.  In Class Session #4,  the equations for the Par Company will be formulated and explained,  the equations will be plotted on a graph, and the concept of the solution demonstrated using the graphical method.
The solution will be checked by introducing the Management Scientist software package.  Work homework problems # 11, 12, 13, 25, 26 and 28.   Check your answers using the Management Scientist software.
 

CLASS SESSION #5.  Introduction to Linear Programming - A Simple Minimization Problem and the Graphic Method

Linear programming applies to an objective function which can be either maximized or minimized.  The LP minimization problem is just as important as the maximization problem.  One of the major LP formulations for the minimization problem is a special case problem which will be discussed in greater detail later - that being the transportation problem.

In Chapter 2 of Anderson, Sweeney and Williams,  the M and D Chemical Company is introduced as an example of the simplistic linear programming formulation and a minimization formulation.  In Class Session #5,  the equations for the M and D Chemical Company will be formulated and explained,  the equations will be plotted on a graph, and the concept of the solution demonstrated using the graphical method. The solution will be checked by using the Management Scientist software package.  Finally, some cases will be mentioned such as alternative feasible solutions, infeasibility, and unboundedness.

Work homework problems 29, 32, 35, and 36.  Check your answers using the Management Scientist software.
 

CLASS SESSION #6.  In Class Presentations of Linear Programming Problems

In Class Session #6,  students in class will have the opportunity to come and present their solutions to homework solutions from Sessions 4 and 5.  Everyone should be prepared for each problem.  Students will be randomly selected to present the various problems.
 

CLASS SESSION #7.  Class Presentations of Linear Programming Problems Continued.  Introduction to the Use of Excel in the Solution of LP Problems

Class Session #7 will continue the presentation of homework problems from Sessions 4 and 5.  As the word problems are solved, we will use the Management Scientist software to generate solutions.   The last portion of the class will be to learn how to utilize Excel spreadsheets for the solution of LP problems.
 

CLASS SESSION #8.  Test Number 1

Test Number 1 will cover chapters 1 and 2 of the Anderson text.  The test will have 3 questions with some parts.  Question #1 will as you to solve a simple linear programming problem via the graphic method.  Question #2 will ask you to write some simple equations for a linear programming situation.  Question #3 will provide you with a sample Excel spreadsheet and ask you to write Excel equations for a break even problem.
 

CLASS SESSION #9.  LP Sensitivity Analysis and Interpretation of Solutions

In class session #9,  linear programming problems are illustrated from the point of view of the many additional pieces of information available from the optimal solution.  This material shows how the objective function coefficients can change, leave the optimal solution constant, and increase or decrease the objective function amount.  Additionally,  information is discussed about the economic effect of additional quantities in the constraint equations.

Some examples of how these questions can be answered from the Management Scientist output,  some examples are provided.
 

CLASS SESSIONS #10 and 11.  LP Formulations

In class session #10,  a variety of linear programming problems are formulated with the intent of developing a resevoir of ways in which traditional objective functions and constraints are written.  The variety of programs covers such diverse areas as portfolio analysis,  media selection,  make or buy decisions,  employee scheduling systems,  production scheduling systems, and others.