Management and Public Service College
Department of Accounting and
Finance
Course Information:
Academic Year: 2015/2022 Semester: II Class Year:
III
Program: Accounting and Finance
Course Title: Operations Research
Course Code: MGMT 3052 Credit Hours: 3
Pre-requisite: Mathematics for Management
Status of the course: Supportive
Instructors: Adem M. and Sisay T.
Course Description
Problems solving and decision making are vital skills in all areas of
management. Operations research as discipline devoted to the solution of
management problem using a scientific approach. The problem is viewed as
the focal point of analysis, and quantitative model are the vehicles by which
solutions are obtained. This course introduces several quantitative concepts
and computational tools used by managers to determine solutions to
complex problems and thereby selecting the best solution. It provides an
introduction to the concepts and methods of decision science, which involves
application of mathematical modeling and analysis to management
problems. You will gain an understanding of modeling and rational
approaches to decision making and their contribution to organizational
effectiveness. Analysis and communication are emphasis by using real world
applications and cases. Topics include this course are linear programming,
network models, projects scheduling, and queuing models, applied to tactical
and strategic business decisions in functional areas and interfaces among
the areas. Implementation using existing software packages of decision
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models to solve various managerial problems is an integrated part of this
course.
Course Objective:
Up on completing this course, you should be able to:
Develop analytical skills in structuring and analysis (scientific method) of
business decision problems, which characterized the field of operation
research or management science.
Develop awareness of the complementary nature of the rational and
behavioral approaches to decision making and planning and sharpen your
ability to structure problems and to perform logical analysis.
Use selected software to generate computer solutions of the models.
Learn, through case studies, the applications of operation research or
management science to find solutions to real life business problems
including those in global environment.
Demonstrate skills in communicating the analysis and results of business
decision problems and to work as a member of a team.
Use the knowledge gained from this course to continuing life-long learning
in decision technologies to aid business decision making and planning.
Course Outline
UNIT ONE: INTRODUCTION TO OPERATIONS RESEARCH
1.1 The History of Operations Research
1.2 Nature and significance of operations research
1.3 Features of Operations Research
1.4 Model and modelling in Operations Research
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UNIT TWO: LINEAR PROGRAMMING
2.1 Introduction
2.2 Structure of Linear Programming Model
2.3 Application Area of LP
2.4 Graphical Solutions of LPP
2.5 Special Case in LPP
2.6 The Simplex Method
2.7 Some complication and their Resolution
2.7.1. Unrestricted variables
2.7.2. Tie for leaving and entering variables
2.8 Duality in LPP
2.9 Sensitivity Analysis
UNIT THREE: TRANSPORTATION AND ASSIGNMENT PROBLEMS
3.1 Introduction
3.2 Methods for Finding Initial Solution
3.3 Test for Optimality
3.4 Variation in Transportation
3.4.1. Unbalanced supply and demand
3.4.2. Degeneracy
3.4.3. Alternate optimal solution
3.4.4. Prohibited transportation routes
3.5 Maximization Transportation problems
3.6 Solution method for Assignment problem
3.7 Special case in Assignment Problems
UNIT FOUR: DECISION THEORY
4.1 Introduction
4.2 Types of Decision-Making Environment
4.3 Decision making under Uncertainty
4.4 Decision making Under Risk
4.5 Decision making Under Certainty
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4.6 Decision Making with Utilities
UNIT FIVE: NETWORK MODELS
5.1 General network concepts
5.2 Networking algorithms
5.3 Basic Difference Between PERT and CPM
5.4 PERT/CPM Network Components and precedence
Relationship
UNIT SIX: GAME THEORY
6.1 Introduction
6.2 Two-person Zero-Sum Game
6.3 Pure Strategies: Game with Saddle Point
6.4 Mixed Strategies: Game without Saddle Point
6.5 The Rule of Dominance
UNIT SEVEN: QUEUING ANALYSIS
7.1 Introduction
7.2 Queuing system
7.3 Queuing system performance measures
7.4 Queuing model
PRE-REQUISITE COURSE: MATHEMATICS FOR MANAGEMENT
Mode of Delivery and Course Documents:
Class times will include lectures, discussions, exercises and group work.
Slides (if any) and notes cover related chapter subjects.
Assessment techniques:
Continuous assessment (50%)
Final examination (50%)
Responsibility and Academic Integrity:
Students have responsibility to themselves (attendance, in-class
participation, expected to solve and write up your own
assignment and to credit all sources of materials and collaborates
to the formulation of a solution).
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Students are expected to exert a significant amount of effort on
their own, and to keep up with the lectures.
References
Anderson, Sweeney, and Williams. Management Science, 8th ed.
West [Link].
[Link] R.B. Khanna, Quantitative Techniques for Decision
Making, New Delhi, 2004
Turban and Meredith, management Science,6th ed. IRWIN
Render and Stain, Quantitative Analysis for Management, 6 th ed.
Allyn and Cacon
Bernard W. Taylor, Introduction to Management Science, 9 th ed. New
Jersey, 2007
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