Modeling Business Decisions
Code
2346
Academic unit
null
Department
null
Credits
3,5
Teacher in charge
Sofia Margarida Fernandes Franco
Teaching language
English
Objectives
Managers usually find spreadsheets natural, intuitive and user-friendly platforms for organizing information and performing what if analyses. Spreadsheets have therefore become indispensable tools of modern business analysis. This course will focus on structuring, analyzing, and solving managerial decision problems on Excel spreadsheets.
We will address problems of resource allocation (how to utilize available resources optimally), risk analysis (how to incorporate uncertainty in problem parameters), decision analysis (how to synthesize a sequence of decisions involving uncertainty), data analysis (how to summarize available data into useful information), and forecasting (how to extrapolate past data into the future).
In each area, we will consider specific managerial decision problems, model them on Excel spreadsheets, analyze and solve the models using available Excel commands, functions, tools, and add-ins, and study economic interpretations of the solutions obtained.
Prerequisites
Subject matter
The Course Outline is:
1. Introduction
2. Introduction to Optimization Modeling
3. Linear Programming Models
4. Sensitivity Analysis
5. Network Models
6. Optimization Models with Integer Variables
7. Nonlinear Optimization Models
8. Forecasting Models
9. Introduction to Simulation Modeling
10. Monte Carlo Simulation Models
Bibliography
Teaching method
A highly interactive format with exercises and assignments is designed to engage students in problem based learning in order to help them understand complex concepts quickly. Each student should bring his or her own laptop (with Excel 2007 or higher), or else can use the facilities in the PC Pool. Course is limited to 20 students.
Evaluation method