AEDE 4002.02
(Session 2: Begins March 5, 2015)
Quantitative Analysis for Agribusiness
aka: Applied Optimization and Simulation for Business Decision Analysis
OFFICE: 325 Agricultural Administration Building
OFFICE HOURS
By appointment, contact Prof. Thraen via email.
Course TA office hours: Tuesday 2:30 – 4:30pm or by email appointment
TA Email: Mr. Acuna, acunagarcia.1@osu.edu
Prof. Thraen email address:
thraen.1@osu.edu
Class times: T/W/R 11:30 – 12:25am
Room: AA 251
Computer Lab AA 005
Friday 11:30-12:25 Session 1 / 12:30 – 1:25 Session 2
Course Information
Textbooks: Required available at the OSU bookstore.
Spreadsheet Modeling and Decision Analysis. 7th Edition
Cliff T. Ragsdale. Cengage Learning. {Note, you can also use the 6th edition. The
author made a significant change after the 5th edition, so I would not recommend
using that one.}
Required Computer Software: Analytic Solver Platform for Education(ASPE).
Frontline Systems, Inc. A 140 day license is provided free of charge with the
purchase of the textbook and registration with Frontline Systems, Inc. Instruction to
acquire the software is included with your textbook. The required access code will be
provided in class.
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The student is expected to have a basic working knowledge of Microsoft Excel. The
use of the advanced version of Microsoft Excel Solver supplied with the textbook will
be taught in the computer lab and used to complete all graded assignments and exams.
Course Overview
AEDE 4002.02 is an introductory undergraduate level course on modeling business
decisions using linear programming and monte carlo simulation analysis.
Topic to be covered in AEDE 4002.02 include:
1. An overview of Optimization and Simulation and it's role in business decision
analysis,
2. Linear Programming, Sensitivity Analysis and Duality: a review of selected
business applications,
3. Simulation modeling, Monte Carlo techniques, a simulation exercise for
retirement planning.
This course will, through a series of in-class examples and homework exercises,
provide the student with the basics of an applied mathematical programming and
Monte Carlo simulation experience.
Course Objectives
The goal of this course is to develop an understanding of the fundamentals of linear
programming, the economics of optimization for making business decisions, and
applied simulation modeling with probability concepts.
At the end of the course, students will be able to: [1] list, define and explain the
principal concepts of Linear Programming. [2] list, define and explain the principal
components of Monte Carlo Simulation. [3] develop and interpret the representative
applied business models in selected application areas.
Course Grading Policy
Course grade will be based on completion of four assigned computer exercises (60
points total) and two mid-term practicum examinations (15 points each) and class
attendance / participation (10 points). Participation includes turning in all
assignments on time. Assignments may be placed in the Dropbox or handed in at
beginning of lecture class. Late work will be accepted however it will receive a
substantial grade penalty of ½ letter grade per day late.
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OSU Statement on Academic Misconduct
Plagiarism and other forms of cheating will not be tolerated. This includes all forms of oral or written expression
including computer coding. University rules provide severe penalties for academic misconduct ranging from course
failure to dismissal from the university. University rules are found in the handbook, "University Survey - A
Guidebook and Readings for New Students".
Lecture, Reading & Computer Lab Assignment Schedule
1
Semester
Week
March 4 – 6
2
March 10 - 13
SB
3
March 16 – 20
March 24 – 27
4
March 31April 3
5
April 7 – 10
6
7
April 14 – 17
April 21 – 24
Class Lecture Material
Computer Lab
Ragsdale: Introduction to Modeling &
Decision Analysis. Ragsdale Chapter 1
Ragsdale: Optimization and Linear
Programming, Chapter 2
OSU Spring Semester Break
Ragsdale: Modeling and Solving LP in
a Spreadsheet, Chapter 3
Ragsdale: Sensitivity Analysis in LP,
Chapter 4
Installing APSE on
your computer
Applied Exercise 1.
Ragsdale: Introduction to Simulation,
Chapter 12
Monte Carlo Simulation Modeling I
Monte Carlo Simulation Modeling II
________________
Applied Exercise 2.
1st Midterm
Examination April
3. In AA 005.
Applied Exercise 3.
Applied Exercise 4.
2nd Midterm
Examination April
24. In AA 005
Applied Midterm Examination Schedule
1st Midterm exam schduled for 4/3. 2nd Midterm exam scheduled for 4/24. All
examinations will be held during your assigned computer lab session. As these
examinations are an application requiring the use of the AA-05 computer laboratory
there will be no make-up exams for any reason other than allowed by The Ohio State
University rules (unforeseen health issues with completed OSU Medical Form).
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Computer Lab Schedule and Applied Midterm Examination Schedule
Computer Lab Schedule: All computer labs are held in AA 005.
Lab #1 March 6 Computer Lab AA-005 : Introduction and use of the Microsoft Excel Solver
optimization software. Installing Frontline Systems, Inc. APSE on your own computer.
Lab #2 March 13 Computer Lab AA-005 : Applied computer exercise #1 (scored, 15 points).
The basic linear programming model: Blue Ridge Hot Tubs. Completed exercise due at
beginning of lecture on 3/25.
Lab #3 March 27 Computer Lab AA-005 : Applied computer exercise #2 (scored, 15 points).
The Retirement Planning linear programming model. Completed exercise due at beginning of
lecture on 4/1.
Lab #4 April 3 Computer Lab AA-005 : 1st Applied Midterm Examination (15 points). Exam
held during your assigned computer lab session in the AA-05 computer lab.
Lab #5 April 10 Computer Lab AA-005 : Applied Computer Exercise #3 (scored, 15 points):
Monte Carlo Simulation, A Basic Simulation Model in APSE. Completed exercise due at
beginning of lecture on 4/15.
Lab #4 April 17 Computer Lab AA-005 : Applied Computer Exercise #4 (scored, 15 points):
Monte Carlo Simulation Retirement Planning Model. Completed exercise due at beginning of
lecture on 4/22.
Lab #5 April 24 Computer Lab AA-005 : 2nd Applied Midterm Examination (15 points).
Exam held during your assigned computer lab session in the AA-05 computer lab.
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