Introduction to MGT2031: Operations Research
Dear students
Welcome to the study unit MGT2031: Operations Research. We, Professor Frank Bezzina
(https://www.um.edu.mt/profile/frankbezzina)
and
Professor
Stelios
Bekiros
(https://www.um.edu.mt/profile/steliosbekiros) will be delivering this study unit. We have
been delivering similar study units for the past 16 years and it is worth noting that there have
been quite some changes in the delivery through these years. In the past, the focus was more
on model building and laborious manual calculations. While we will continue to place an
emphasis on model building (with all the necessary assumptions), there is now a greater
emphasis on computer applications particularly when the mathematical computations for a
specific technique are detailed. In this way, the focus will be on the managerial problem and
less time is spent on the mathematical details of the algorithms.
The rationale and learning objectives of this study unit are:
• To introduce students to the basic operations research techniques used in commerce and
business management.
• To introduce students to the methodology of operations research, where the various
techniques and their role in operations research study involving specific problem areas would
be placed in perspective.
• To introduce students to the use of computer software (mainly EXCEL) so that they can model
and solve problems electronically.
Indicative Syllabus & Study-unit Outline:
This study unit covers the following six topics:
1. Introduction to Quantitative Analysis: The quantitative analysis approach, the application of
quantitative analysis approach, the use of modelling in quantitative analysis, possible problems
in the quantitative analysis approach (Chapter 1 of Main Textbook).
2. Linear Programming: Graphical Solution to a LP problem, LP applications involving
equality constraints, inequality constraints, negative right-hand sides and minimization
problems, Use of Excel to solve LP problems, Sensitivity Analysis. (Chapter 7 of Main
Textbook).
3. Project Management: AON network; PERT; PERT/Cost; Critical Path Method (CPM);
project Crashing. (Chapter 11 of Main Textbook)
4. Network Models: Minimal Spanning tree technique; Maximal flow technique; shortest-route
technique. (part of Chapter 9 of Main Textbook).
5. Inventory Analysis: The Basic-Economic Order Quantity (E0Q) model; The Production
Order Quantity Model; the Quantity Discount Model, the use Excel QM to solve inventory
problems. (Chapter 6 of Main Textbook).
6.
Simulation: Advantages and disadvantages of simulation, Monte Carlo simulation;
simulation and queuing problems, simulation and inventory analysis, simulation of a
maintenance policy, verification and validation, the role of computers in simulation (Chapter
13 of Main Textbook).
Main Textbook
Render, B., Stair, R.M., Hanna, M. E. & Hale, T.S. (2018) Quantitative Analysis for
Management. Harlow, UK: Pearson Education Ltd.
Modus operandi
We will be providing you all the material and recordings on VLE so that those University of
Malta students who are abroad on an ISEP or Erasmus exchange and who were obliged to take
this study unit will be able to follow. Please listen to the recordings provided and follow any
additional instructions or read any further material that will accompany specific sessions. To
do so, you do not need to stick to the timetabled hours (Monday or Wednesday from 10:00 to
12:00). For each session I will be provide you with take-home exercises and to facilitate your
learning, the solutions will be provided on VLE as well. If problems persist, you can send your
questions on the Q&A forum or if it is something more personal, contact Prof. Frank Bezzina
on frank.bezzina@um.edu.mt. Use email only of it is strictly for personal matters.
Assessment
The study unit is assessed via a two-hour exam on WiseFlow comprising multiple choice
questions and fill-in the blank/s items. It will be open book and hence you will have access to
all the study-unit material as well as calculators and Excel. More details on the assessment to
follow in the coming weeks. We will also be providing you with a Specimen Paper and we will
go through the specimen paper and a past paper together in person before the Semester 1
examinations commence.
Conclusion
We hope that you enjoy this study unit. May we remind you that studying on a regular basis is
much more effective than trying to cram all the material one week before the examination.
Finally, there is no need to panic if you are afraid of mathematics and statistics. This study unit
will not have any differentiation or integration. You will be provided with all the formulas, you
do not need to study any proofs and hence we will only be using direct application of the
algorithms to help us in managerial decision making.
Best regards
Prof Frank Bezzina
Prof. Stelios Bekiros
😊