MIDDLE EAST TECHNICAL UNIVERSITY DEPARTMENT OF BUSINESS ADMINISTRATION BA-3504 Management Science Spring 2013 Instructor: Assoc. Prof. Dr. M. Sinan Gönül Office: METU, Department of Business Administration, H-120 Phone: 210-2034 e-mail: msgonul@metu.edu.tr Webpage: www.metu.edu.tr/~msgonul Class Hours: Tuesday & Thursday 10.15 - 11.30 Office Hours: Wednesday 13:30 - 14.30 Course Assistant: Course Objectives: Management science deals with the presentation and conversion of real-life problems into quantitative models. Through these quantitative models, we can apply mathematical/statistical techniques and attain recommendations about the solution of the problem. In turn, by interpreting these recommendations, we gain insight and guidance about how to overcome that problem. Management science serves as an important consultant for real-life managerial decision making. Management science has a sophisticated mathematical and statistical background underlying its models and tools. However, having a managerial perspective, we will not dive so much into this theory, but remain highly on the application side. We will define a problem, construct its model and feed it into the computer. Then we will let the computer solve the problem. In this process, the crucial point is how to define a management problem, build an appropriate model, how to code it into a spreadsheet program(like MS Excel) and expectedly how to interpret the outputs produced by the computer. Materials: The course will be based on class lectures and notes. The primary textbook for the course is Managerial Decision Modeling with Spreadsheets, 3rd Edition, Balakrishnan, Render & Stair, Pearson., 2013. For reference, deeper learning and solved problems, two additional textbooks are recommended and students are highly encouraged to obtain them: Introduction to Management Science with Student CD, 4th Edition, Frederick S. Hillier, Mark S. Hillier, McGraw-Hill Publications. 2008. Quantitative Analysis for Management, 10th Edition, Render, Stair & Hanna, Pearson-Prentice Hall, Inc., 2009. The software we will frequently use: MS Excel with Solver add-in, GLP(Graphic Visualization Program), RiskSim. Course Policy: There will be two midterms and a final examination. The exams will consist of problems of model construction, true/false questions, multiple choice questions, and computer output interpretations. Tentative weights for these will be 30% for the first midterm, 30% for the second midterm, 25% for the final exam and 15% for the other class related stuff (i.e., homeworks, case studies, in-class assignments, and/or business competitions) Of course you are expected to attend the lectures regularly. To achieve a real understanding of any course taught, attendance is a must. The lectures will be full of insights, shortcuts, hints and examples, which can never be learnt from the textbooks or lecture notes. Therefore, come to class if you are ALIVE!! Another crucial point for success in this course is practice, LOTS OF PRACTICE. This is the KEY!!! I’m certain that you will perfectly understand every problem solved during lectures and recitations, but that will remain quite limited. They won’t be enough for the exams. When it comes to solving problems on your own, you need firsthand experience and the consequent proficiency. And this could only be achieved by solving a lot of problems. Therefore, it is imperative that you acquire the required textbook(s) and start solving end-of-chapter problems immediately. In case you cannot attend one of the examinations, if and only if you can present an official (dean's or president's office approved) excuse or METU Medical Center certified Health Report, you will be eligible to a make-up examination. There will be one single, comprehensive and classical make-up examination during the final period and it will be counted towards whichever exam(s) you are missing. Another important warning is about the status of the ‘resit’ examination. Resit examination is neither an alternative to the final exam (i.e. a second final exam) nor a way to improve your letter grade. You can only take it if you fail the course with ‘FD’ or ‘FF’ grade, not in any other condition. You cannot enter the resit exam if you eventually passed the course with a ‘DD’ or higher grade (even if you got a low mark from the final exam). Not participating in the final exam and trying to fail the class in order to enter the resit examination is not a viable option. The resit examination will be comprehensive, detailed and will inquire advance knowledge and understanding, so any student is strongly advised to participate in the normal semester examinations and not to try any ‘monkey business’ with the resit. Tentative Subject List: I. Introduction to management science II. Linear Programming (LP), the graphical method III. Linear Programming applications and examples IV. Network problems Review & Midterm 1 V. Sensitivity analysis VI. Integer Programming VII. Goal Programming Review & Midterm 2 VIII. Nonlinear Programming IX. Simulations