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
N/A
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
There is only one required textbook for this course: Albright, S.C. and Winston, W.L., "Management Science Modeling", 3rd or 4th edition are OK, Cengage Learning. Chapters: 1, 3-7, 11 and 12.
Students should not expect the instructor to write down lecture notes on each topic and post them in moodle or to email them. However, in each class, the instructor will highlight the material she feels most important or that is conceptually difficult, where she can provide an alternate explanation or modeling to complement the textbook´s presentation. This is a very practical/interactive course and students should attend lectures and take their own notes. Whenever appropriate the instructor will provide some additional readings. Students should always read the textbook chapters on the topics discussed in class.
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
Final Grade
The course grade will be based on the homework assignments. Each assignment is worth the following:
1st Assignment: 30% of your grade
2nd Assignment: 40% of your grade
Individual Assignment (in class, open book): 30% of your grade
Spreadsheets + Analytical Model (60%)
Write-up (40%)