BADM 641 (sec. 7B1) (on-line)
Decision Analysis
January 6 – February 10, 2015
SEMESTER: Spring 2015
INSTRUCTOR: Jack Fuller, Ph.D.
OFFICE: 108 Business and Economics Building, West Virginia University, Morgantown,
West Virginia 26506
PHONE: (304) 293-7935
E-MAIL: jack.fuller@mail.wvu.edu
TEXTBOOK: Ragsdale, C.; Spreadsheet Modeling & Decision Analysis, West Virginia
University edition, Cengage Publishing [ISBN 10: 1-285-87981-3 or ISBN 13: 978-1285-87981-9]. This is a “custom textbook” that I developed especially for WVU. You
can purchase the book by:
1. Going to the Cengage website http://www.cengagebrain.com/micro/fuller
(a) This custom textbook is available in either paper or electronic form.
2. Through the WVU bookstore
3. Purchase as a used book. (If you would like a hard cover book instead of the loose leaf
book I developed, the only option for you is to get: Ragsdale, C.; Spreadsheet Modeling
& Decision Analysis: A Practical Introduction to Management Science, fifth edition
revised, Cengage Publishing. (Note that none of the other editions of Ragsdale will work
for the course.)
COURSE OBJECTIVES AND PHILOSOPHY: This is a quantitatively oriented course
and, as such, relies on skills that you have acquired in earlier courses. The central theme
of the course is decision analysis and decision model building and solving these decision
models utilizing various combinations of spreadsheets. This also refers to the art of
facing a real-world problem and expressing it in quantitative terms in order that an
improved understanding of the situation can be achieved. This will often require skills
learned in functional areas as well as the experiential learning accumulated through work
experiences in the real world. One focus in the course will be on the use of a field project
to present issues and develop the student’s problem solving skills. The applications
discussed will focus on a variety of managerial decision making issues and problems.
PERFORMANCE EVALUATION: Ultimately, you will have to judge from examining
your own decision making and decision modeling skills what you have learned from this
course. In addition to my responsibility to design and implement an effective course, I
must also assess your level of understanding and performance on the examinations and
field project as indicated in this course outline.
Your course grade will be based upon the following components and weights:
Worst exam
Best exam
Field project
35%
45%
10%
2
Submitted problems
5%
Participation on Discussion Board
5%
Total
100%
There will be two examinations (midterm and final), which will be problem oriented and
open book. The midterm exam will be given after the completion of Module 3 and the
final exam will be given after the completion of Module 8.
A key to making a good grade is diligently keeping up with all of the module activities
and assignments within the time frame laid out in the course. This is not the type of
material that can quickly be learned the day before an examination. We will be using a
“threaded discussion board” for class members to raise questions, respond to questions,
and raise whatever other issues they may want to. In addition, students will be
periodically asked to submit problems for review.
The final examination will not be comprehensive.
Software and Computers
The course will be based on Excel 2013 (although those using a version as old as Excel
2007 should be alright). The course is not meant to be focused on teaching Excel. If you
are unfamiliar with Excel, my recommendation would be to get an introductory Excel
book to review. The software used in the course assumes that you are running a Windows
based operating system. If you are using a MAC computer, you must have the latest
operating system loaded on it for the software we will be using in the course to work
properly.
CLASS SCHEDULE: The following course outline identifies the topic and general
preparation for the course.
Week of January 5, 2015
Module 1: Introduction to Decision Analysis and Decision Modeling
Assignments:
1. Read pages 1-13, 17-39, and 45-78 in textbook.
2. Review Modules 1 and 2 lectures
Week of January 12, 2015
Module 2: Introduction to Spreadsheet Decision Modeling
Topics:
1. Product selection decisions
2. Make vs. buy decisions
3
3. Investment decisions
4. Transportation decisions
Assignments:
1. Read pages 78-98 in textbook.
2. Review Module 3 lecture.
Week of January 19, 2015
Module 3: Continuation of Spreadsheet Decision Modeling
Topics:
1. Blending decisions
2. Production and inventory planning decisions
4. Multi-period cash flow decisions
Midterm exam from 6:00-9:00 pm ET on Thursday (January 22)
Assignments:
1. Read pages 177-192 in textbook.
2. Review Module 5 lecture.
Week of January 26, 2015
Module 5: Network Models
Topics:
1. Transshipment decisions
2. Shortest path decisions
3. Equipment replacement decisions
Assignments:
1. Read pages 193-210 and 232-254in textbook.
2. Review Module 6 and 7 lectures
3. Begin working on your Field Project with your team
Week of February 2, 2015
Module 6: Continuation of Network Models
Topics:
1. Transportation/assignment decisions
2. Generalized network flow decisions
3. Maximal flow decisions
4. Minimal spanning tree decisions
4
Module 7: Integer Programming
Topics:
1. Employee scheduling decisions
2. Capital budgeting decisions
Assignments:
1. Read pages 254-268 in textbook.
2. Review Module 8 lecture.
Week of February 9, 2015
Module 8: Continuation of Integer Programming
Topics:
1. Fixed charge decisions
2. Quantity discount decisions
3. Contract award decisions
Midterm exam from 6:00-9:00 pm ET on Thursday (February 12, 2015)
Assignment:
1. Finish work on a joint field project study with others on your team.
2. You are to utilize the information you have gained from this course to work on this
project.
3. Utilize the “Ten Step Process” to clarify your understanding of your field project
problem.
4. The end product from this assignment will be a written report to be submitted
electronically to the instructor by the midnight (Sunday) February 15. An example table
of contents for your written report and an example Field Project Report will be provided.