Management Science
Announcement
PROFESSOR: YERIM CHUNG
TA: SUNG YEON PARK
Information
Yerim Chung
- yerimchung@[Link]
- YSB 535
TA
Sung Yeon Park
- sungyeon.park33@[Link]
Real-time online classes on Zoom
Recordings of the lectures will not be provided for any reason!
Please make sure that you have a proper network connection before class
starts.
It is recommended that every student turns on the video during class.
It is not allowed that capturing or transmitting the image of instructors and
students.
Unauthorized recording and distribution of online classes violates the copy-
right law.
In this lecture
1. A variety of tools for Management Science.
2. Applications of MS in manufacturing, finance, marketing and more.
3. Goal: Help students learn where the MS methodologies can be used
in real life.
Textbook
Introduction to Management Science: A Modeling and
Case Studies Approach with Spreadsheets, by M.S.
Hillier and F.S Hillier, 6th ed.
What is Management Science?
▶The discipline of applying advanced analytical methods to help make bet-
ter decisions.
Optimization is Everywhere!
It is embedded in language, and part of the way we think.
- People want to make the best choices.
- When playing games, we want the best strategy.
- When we have too many things to do, we want to optimize the use of our
time.
What is Management Science?
- Max is in a pie eating contest that lasts 1 hour. Each
torte that he eats takes 2 minutes. Each apple pie
that he eats takes 3 minutes. He receives 4 points for
each torte and 5 points for each pie.
- Decision to make: What should Max eat so as to get
the most points?
What is Management Science?
• As the size and complexity of organizations increase, it becomes more
and more difficult to make decisions that are best for the organization as
a whole.
- How to conduct and coordinate the operations within an organization?
• Management science
- Scientific approach in the management of organization
- Devoted to solving managerial-type problems using quantitative mod-
els
- Operations Research (O.R) :
The Management Science Approach
1. Define the problem of interest and gather relevant data.
2. Formulate a mathematical model to represent the problem.
- Decision variables: quantifiable decisions to be made
- Constraints: restrictions on decision variable values
- Objective function: measurement of performance
- Parameters (Using good estimates makes the model more reliable)
3. Develop a computer-based procedure for deriving solutions to the problem from the
model.
- Readily available software packages : CPLEX, LINDO, SOLVER etc.
4. Test the model and refine it as needed.
5. Implement.
Advantages of the Quantitative Approach
• Concise description
• Comprehensibility: the structure of the problem and
important cause and effect relationships etc.
• Results in more objective decisions than purely quali-
tative analysis.
• Facilitates dealing with the problem in its entirety.
• Incorporates advances in computational technologies
to managerial problem-solving.
Course schedule
• Introduction and course overview
• Linear programming
• Network Optimization
• Binary Integer programming
• Case Study
• Nonlinear programming
• Final Exam
Grading Policy
Absolute grading
Mid-term Exam (35%)
Final Exam (40%)
Class Exercises and Participation (20%)
Attendance (5%)
Class Exercise Submission Rule
Please submit both of Excel and Hard Copy before class ends.
Your excel file should named as ID_Name (e.g. 2016123423_David
Park).
In excel, use separate sheet for each model.
Do not use scrap or scratch paper for hard copy submission.
Please use whole page clean paper. (prefer A4)
- Neatness points will be given in each submission.
Thus, please write out nice and clear.
Instead writing on excel sheet, please clarify the answers in hard copy.
Attendance
Attendance will be taken at each lecture by using the
electronic attendance system.
There is a penalty for late attendance, early leave,
and absence. (3 latenesses = 3 early leaves= 1 ab-
sence = -1 point)
‘F’ for missing more than 15 hours of lectures.
Grading Policy
Absolute grading
A+: 96~100, A0: 92~95.9, A-: 88~91.9
B+: 83~87.9, B0: 77~82.9, B-: 72~76.9
C+: 65~71.9, C0: 60~64.9, C-: 56~59.9
D+: 50~55.9, D0: 46~49.9, D-: 40~45.9
F: 0~39.9
Grading Scale can be adjusted.
General Policies
• No make-up exams unless you have a serious reason
beyond your control. In this situation, you must en-
deavor to notify the instructor as soon as possible.
• All students are required to be honest in all academic
work submitted and exams taken in this course.
• Students submitting identical or nearly identical work
will all receive a score of 0 for that particular assign-
ment.