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Lecture Notes & Class Announcements

MGMT 471 - Production/Operations Management


Week 1 Week 2 (9/5/2013) Week 6 (10/3) Week 11 Week 15
  Week 3 (9/12) Week 7 (10/10) Week 12 Week 16 - Final
  Week 4 (9/19) Week 8 (10/17) Week 13  
  Week 5 (9/26) Week 9 (10/24) Week 14  
    Week 10 (10/31)    

  • Week 1:
    • Syllabus | MS-Word |
    • Chapters 1 & 2
    • Modeling Concepts
    • Assumptions of LP Model:
      •  Single objective (goal)
      • Deterministic
      • Linearity
    • LP Formulation
    • Hands-on Lab Exercises: Textbook Case Studies #2-1, 2, 3
    • Next Week: Chapters 3, 4

  • Week 2:
    • Chapters 2, 3
    • Interpretation of Optimal Solutions:
      • Dual Price (= Shadow Price)
      • Reduced Cost
    • LP Formulation (continued): Minimization
    • Graphical Solution
    • Business Applications

  • Week 3:
    • Review of Homework:
      • #3-16, Tucker Inc.
    • Lecture: Chapter 4
      • Marketing Application - Media Selection (Media Mix)
        • Class Example: Relax-and-Enjoy Development Corporation, pp. 155-158.
      • Finance Application - Portfolio Selection (Portfolio Investment)
        • Class Example: Welte Mutual Fund,  pp. 161-164.
    • Homework:
      • #4-1, p. 189.
      • #4-3, p. 190.

  • Week 4 (9/19/2013):
    • Review of Homework:
    • Lecture: Chapter 4 (continued)
      • HR Application: Staff Scheduling:
        • Class Example: #4-8, p. 192: The Clark County Sheriff's Department
      • Production Scheduling:
        • Class Example: pp. 172-179: Bollinger Electronics Company
    • Exam 1:
      • Take-home Exam
      • Due: 6:00 p.m. Sept. 26, 2013
      • #4-25, p. 201: Western Family Steakhouse - HR Application: Staff Scheduling
        • Define the decision variables.
        • Formulate the objective function.
        • Formulate the constraints.
        • Run MS-Excel Solver program & get the optimal solution.
        • Interpret the optimal solution including the dual value (shadow price) and reduced cost if applicable.
      • #4-19, p. 197: Silver Star Bicycle Company - Production Scheduling
        • Define the decision variables.
        • Formulate the objective function.
        • Formulate the constraints.
        • Run MS-Excel Solver program & get the optimal solution.
        • Interpret the optimal solution including the dual value (shadow price) and reduced cost if applicable.
        • Note: Review the textbook (pp. 172-179) first, then attempt to formulate LP for this case.
    • Group Project 1:
      • Real World Application of Linear Programming Model
      • Develop a business case that needs to achieve an objective (either MAX or MIN).
      • Deliverables:
        • Page 1-2: Case Statement
        • Page 3: Background Information - Description of the company, description of the industry
        • Page 4: Description of LP Model
        • Page 5: LP Formulation - Decision variables, objective function, constraints
        • Page 6-7: Optimal solution - Computer outputs & interpretation of the optimal solution
        • Page 8: Summary & Conclusion - Executive summary & recommendation
        • Page 9: References
      • Grading Guidelines:
        • A = If the case is based on the real life business;
        • B = Hypothetical company; no optimal solution is found
        • C = Some of the deliverables are missing, incomplete, incorrect; Data are unrealistic.
      • Project Time: 3 Weeks
        • Due 6 p.m., October 10, 2013.

  • Week 5:
    • Solutions of Exam 1:
      • #4-25, p. 201: Western Family Steakhouse - HR Application: Staff Scheduling
      • #4-19, p. 197: Silver Star Bicycle Company - Production Scheduling
    • Chapter 5:
      • Data Envelopment Analysis (DEA) Model
        • Class Example: County Hospital
        • Homework: University Hospital
          • Write the LP equations.
          • Run the DEA model for University Hospital, using MS-Excel Solver.
          • Attach the computer solution.

  • Week 6 (10/3)
    • DEA Model (continued)
    • Revenue Management Model

  • Week 7 (10/10):
    • Group Project 1 - Business Applications with LP Model
    • DEA Model - Introduction - General Discussion: DEA Concepts | PowerPoint |
    • Group Project 2 - Research Paper with DEA Model:
      • Guidelines - How to Write a Research Paper | MS-Word |
      • Research Paper Template | MS-Word |

  • Week 8 (10/17):
    • Chapter 11 - Waiting Line Model (Queuing Model)
    • Mid-term Exam:
      • Chapters 1, 2, 3, 4 & 5 (Chapter 11 is not included).
        • Formulation:
          • Decision variables
          • Objective function
          • Constraints
        • Interpretation:
          • Optimal solution
          • Shadow price (= dual price)
          • Reduced cost
      • No multiple choice, true/false questions
      • You can bring a reference sheet (8x11, front & back, hand-written)
      • Go over the textbook examples on each chapter, class examples, homework problems, etc.

  • Week 9 (10/24):
    • Mid-term Exam:
      • Chapters 1, 2, 3, 4 & 5 (Chapter 11 is not included).
        • Formulation:
          • Decision variables
          • Objective function
          • Constraints
        • Interpretation:
          • Optimal solution
          • Shadow price (= dual price)
          • Reduced cost
      • No multiple choice, true/false questions
      • You can bring a reference sheet (8x11, front & back, hand-written)
      • Go over the textbook examples on each chapter, class examples, homework problems, etc.

  • Week 10 (10/31):
    • Group Project:
      • Section 2 - Literature Review:
        • Summary & Conclusion Paragraph - Lack of Study on .......
      • Section 3 - Methodology
      • Section 4 - Results
    • Chapter 11 - Queuing Model (continued)
    • Business Analytics - Statistics

  • Week 11
  • Week 12
  • Week 13
  • Week 14
  • Week 15
  • Week 16 - Final Exam