Economics 261, Managerial Economics II
Stephen H. Strand, Willis 304, x4104
sstrand@carleton.edu
Office hours: M,W 2:30-4:00
and by appointment
Course Description and Syllabus
Course Description: This course is an introduction to practical decision-making
techniques used by economists and managers. Techniques surveyed in this course
represent the fundamental methods of operations research. Among the analytical tools
introduced are: linear programming, network analysis, Bayesian probability, dynamic
programming, and PERT/CPM. EXCEL is used extensively throughout the course,
particularly in simulation analyses, with most (but not all) homework assignments
utilizing advanced EXCEL functions presented and discussed in class.
Course Purpose: (1) To provide students with an understanding of the relevance of
economics to decision-making in a real world context, and (2) to allow students to
develop an understanding of quantitative techniques used by managers through the
application and use of those techniques.
Text:
David R. Anderson, Dennis J. Sweeney, and Thomas A. Williams,
An Introduction to Management Science, Revised 13th Edition.
South-Western Publishing (Mason, Ohio: 2012).
Grade Determination:
First Midterm (Fri, Feb 3)
Assigned Homework Problems
Second Midterm (Fri, Mar 9)
Syllabus:
Jan 4 Wed
Jan 6 Fri
Jan 9 Mon
Jan 11 Wed
Jan 13 Fri
Jan 16 Mon
Jan 18 Wed
Jan 20 Fri
30%
40%
30%
100%
Introduction, Break-even Analysis. Anderson, Ch. 1.
Building EXCEL Models. Appendix A (pp. 788 – 814) and
Chapter 12, pp. 542 – 557.
Deterministic Inventory Models. Anderson, Ch. 10,
pp. 447-468. See also the appendices to
Chapter 10, pp. 494 – 495.
Probabilistic Inventory Models, Anderson Ch. 10,
pp. 468-484 and Ch. 12, pp. 558-563. See also the
Appendix to Chapter 10, pp. 494 – 495.
Waiting Line Models, I. Anderson, Ch. 11.
Waiting Line Models, II. Review Anderson, Ch. 11 and
Ch.12, pp. 563-577.
Linear Programming I: The Graphical Method. Anderson, Ch. 2.
Linear Programming II: The Simplex Method. Anderson, Ch. 17
(on textbook website).
Economics 261, Managerial Economics II
Carleton College
Syllabus, continued:
.
Jan 23 Mon
Jan 25 Wed
Jan 27 Fri
Jan 30 Mon
Feb 1
Feb 3
Feb 6
Feb 8
Wed
Fri
Mon
Wed
Feb 10 Fri
Feb 13 Mon
Feb 15 Wed
Feb 17 Fri
Feb 20 Mon
Feb 22 Wed
Feb 24 Fri
Feb 27 Mon
Feb 29 Wed
Mar 2 Fri
Mar 5 Mon
Mar 7 Wed
Mar 9 Fri
Linear Programming III: Interpretation of Computer Solutions and
Sensitivity Analysis. Anderson, Ch. 3.
Linear Programming IV. Sensitivity Analysis and the Dual. Ch. 18 (on
textbook website).
Linear Programming Applications I. Anderson, Ch. 4.
Linear Programming Applications II. Anderson, Ch. 5.
Catch up and Review.
First Mid-Term Examination.
Mid-Term Break. No class or office hours.
Transportation and Assignment Problems. Anderson, Ch. 6 (pp.261–273)
and Ch. 14 (on textbook website).
Transshipment, Shortest Route, Maximal Flow, and Minimal Spanning
Tree Problems. Anderson, Ch.6 (pp. 273- 292) and Ch. 20 (on
textbook website).
Integer Linear Programming and Capital Budgeting, I.
Anderson, Ch. 7.
Integer Linear Programming and Capital Budgeting, II.
Review Anderson, Ch. 7.
Nonlinear Optimization Models. Anderson, Ch. 8.
Multicriteria Decisions I. Anderson, Ch. 14, pp. 659 -674.
Multicriteria Decisions II. Anderson, Ch. 14, pp. 674 -691.
PERT/CPM, I. Anderson, Ch. 9.
PERT/CPM, II. Review Anderson, Ch. 9.
Decision Analysis, I. Anderson, Ch. 13.
Decision Analysis, II. Review Anderson, Ch. 13.
Dynamic Programming and The Shortest Route Problem Redux.
Anderson, Ch. 21 (on textbook website), pp. 21-1 to 21-10.
Dynamic Programming II: An Inventory and Production Model
Anderson, Ch. 221, pp. 21-16 to 21-20
Second Mid-Term Examination.