Methods of Optimization

Methods of Optimization

Course description:

The course Methods of Optimization is part of the Bachelor program in management.

Mathematical methods for determining a way to arrive to the best decision in economics (for example, maximum profit or the lowest cost) for some requirements represented as linear ore nonlinear relationships are examined. The course concentrates on the formulation and solving of linear programming problems. Several classical problems from operations research will be mentioned, such as a production planning problem, a diet problem, a transportation problem, a traveling salesman problem etc. The discipline is based on the knowledge of the mathematical analysis and the linear algebra. An eventual intention behind using knowledge and skills is to elicit the best possible solution to a marketing effort and logistic systems.

Lecturers: Tyutin, Victor V., Savina, Olga N.

Credit points: 4

Faculty: Faculty of Management

Language: Russian

Level: Bachelor

Academic hours : 60

Syllabus:

1.

The linear programming. Theorems of linear programming. The graphical method of solution.

2.

The simplex method. The simplex tableau.

3.

The optimal solution of dual linear programming problems.

4.

Economic interpretation of a dual problem. Dual variables and shadow prices.

5.

The transportation problem.

6.

The optimal assignment problem. The Hungarian method.

7.

The integer linear programming.

8.

The nonlinear programming. The graphical method. The method of Lagrange multipliers.

Kuhn-Tucker conditions.

Readings

1.

Hamdy A. Taha. Operations Research: An Introduction// Pearson/Prentice Hall, 9th Edition,

2010, -832p.

2.

Operations Research in Economics. Edited by N. Sh. Kremer// Moscow: UNITY, 2002,

408 p. (in Russian).