IE 425: INTRODUCTION TO OPERATIONS RESEARCH

IE 425: INTRODUCTION TO OPERATIONS RESEARCH Spring 2013 Section1: 102 Leonhard Bldg., MWF 1:25 - 2:15 pm Section 2: Web  Instructor Office Hours

Dr. José A. Ventura, 356 Leonhard Bldg., 865-3841, [email protected] MW 3:00 - 4:00 pm, Th 11:00 am - Noon (or by appointment)

TA - Sec. 1 Office Hours

Carlos Parra, 207 Leonhard Bldg., 865-8083, [email protected] M 10:15 - 11:15 am, TuTh 9:00 - 10:30 am (or by appointment)

TA - Sec. 2 Office Hours

Sang Jin Kweon, 211 Leonhard Bldg., 865-8189, [email protected] MW 10:30 am - 12:00 pm, F 10:00 am - 12:00 pm (or by appointment)

Prerequisite Concurrent

IE 322 (Quantitative Methods in IE I) IE 405 (Linear Programming)

Objective

The field of operations research focuses on the formulation, analysis, and implementation of quantitative methods to support effective management decision-making. This course will introduce students to several important types of mathematical and stochastic models, and solution techniques, including network flow models, dynamic programming, Markov chains, queueing theory, inventory control, and supply chain management. Such models and techniques can provide valuable insights into several design and planning problems, and thus facilitate their effective analysis.

Textbook

F.S. Hillier and G.J. Lieberman, Introduction to Operations Research, 9th Ed., McGraw Hill, 2010.

References

A. Ravindran, D. Phillips, and J. Solberg, Operations Research: Principles and Practice, 2nd Ed., John Wiley & Sons, 1987. W.L. Winston, Operations Research: Applications and Algorithms, 4th Ed., Thomson, 2004. H.A. Taha, Operations Research: An Introduction, 8th Ed., Prentice Hall, 2007.

Homepage

ANGEL, Penn State’s web-based Course Management System (CMS).

Homework

Assigned weekly/biweekly; no collected; may use software that comes with text; solutions provided.

Quizzes

Given weekly/biweekly on ANGEL (posted: Thursday at 5:00 pm; due: Friday at 11:00 am).

Grading

25% Midterm # 1 25% Midterm # 2 25% Final

15% Quizzes 10% Case Study

Grading Disagreements Re-grade requests for grader omission or oversight only must be submitted within five days of the class period in which the graded item is returned. No requests will be considered after that time. Academic Integrity According to the University Advising Handbook, academic integrity is the pursuit of scholarly activity free from fraud and deception, and is the educational objective of this institution. Academic dishonesty includes, but is not limited to cheating, plagiarism, fabrication of information or citations, facilitating acts of academic dishonesty by others, unauthorized possession of examinations, submitting work of another person, or work previously used without informing the instructor, or tampering with the academic work of other students. Any violation of academic integrity will be thoroughly investigated, and dealt with severely according to the limits of the code.

Notes (1) A review session will be scheduled before each exam. (2) Cell phones need to be turned off in class and during exams. (3) Scanner locations: IME PC lab (104 Leonhard), Engr. Continuous & Distance Education (301 Engr. Unit C), Engr. Copy Center (101 Engr. Unit A), and Pattee-Paterno Libraries

Topic Outline Date(s)

Topic

Reading Assignment

Jan. 7

Course Overview and Introduction to Operations Research (OR)

Chapter 1

Jan. 9 - 18

Network Analysis: shortest path; minimum spanning tree; maximum flow

Jan. 23 - Feb. 1

Project Management: construction of project networks; critical path; PERT; CPM

H&L Sections 9.1 - 9.5; Handout H&L Section 9.8; Chapter 22; Handout

Feb. 4 - 15

Dynamic Programming (DP): principle of optimality; formulation of deterministic and stochastic DP models - examples; discounting; computational effort

H&L Chapter 10; Handout

Feb. 18 - March 1; March 11 - 15

Markov Chains: stochastic processes and terminology; Markovian and stationary properties; transition and state probabilities; Chapman-Kolmogorov equations; discrete-time Markov chains; steady-state probabilities; first passage times; classification of states; absorption probabilities; continuous-time Markov chains

H&L Chapter 16; Handout

March 18 - April 3

Queueing Theory: queueing processes and terminology; Little’s formula; Exponential and Poisson distributions; balance equations; basic queueing models (M/M/1, M/M/s, M/M/1/N, and M/M/s/N); infinite queues in series and Jackson networks

Chapter 4: 80-92

April 5 - 8

Applications of Queueing Theory: waiting cost functions examples; decision models - examples

H&L Section 17.10; Handout

April 10 - 26

Inventory Theory: setup, holding, and shortage costs; deterministic economic order quantity (EOQ) models; EOQ models with quantity discounts; dynamic programming models; newsvendor model; stochastic models; applications to supply chain networks

H&L Chapter 18; Handout

Calendar of Events Date(s) Jan. 7 Jan. 21 Feb. 11 - March 3

Event Classes begin

Martin Luther King Day - no classes Final exam conflict - filing period

Feb. 20

First Midterm (6:30 - 8:30 pm, Sec. 1: 358 Willard, Sec. 2: 362 Willard): one sheet of notes is allowed; bring pen/pencil, eraser, ruler, and calculator

March 4 - 8

Spring Break - no classes

April 3 April 5 April 15 April 26 To be announced

Second Midterm (6:30 - 8:30 pm, Sec. 1: 358 Willard, Sec. 2: 362 Willard): one sheet of notes is allowed; bring pen/pencil, eraser, ruler, and calculator Late drop - deadline Case study report due date Classes end Final Exam: three sheets of notes are allowed; bring pen/pencil, eraser, ruler, and calculator 2