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# INSTITUTE OF MANAGEMENT STUDIES, GHAZIABAD

## Cell No: +91-9810747170; Email: salonic1011@gmail.com

INTRODUCTION: - Decision science is term that is used to describe the discipline of using
advanced analytical techniques to make better decisions and to solve problems. In private
enterprises, decision sciences is used in planning business ventures and analyzing options
by using data and operations research modeling, linear programming, other mathematical
techniques and operations research analysis. The course is sometimes offered as
Management Science, or Introduction to Operations Research, but basically the content is
the same.
The objectives are:

 to introduce the student to the OR process and to a number of different areas within
OR,
 to learn the concepts of operations research by way of modeling real-world problems
as Linear Programming (LP) or Integer Linear Programming (ILP) problems,
 to learn critical quantitative tools,
 to develop students' diagnostic and analytic skills through suitable logical problems to
types,
 to develop their ability to measure and judge quantities,
 to provide a probabilistic base for functional areas of management,
 Finally learn some current best practices in various industries,

This course will have rigorous, application oriented quantitative approach with the aim of
instilling the understanding of basic concepts in decision science.

OUTCOME: - To equip students a basic tool kit of relevant tools which would be necessary
for decision making which will help the students to analyse various decision models and
arrive at good decision.

## METHODOLOGY: - The program is interactive in nature and will be delivered through a

judicious mix of case discussion, lectures and experience sharing between students. Experts
from industry would share their knowledge on various issues related to DS.
SESSION PLAN: -

Topic Session
1. Introduction to managerial decision-making 1
1.1 What is decision modeling
1.2 Types of Decision Models
1.2.1 Probabilistic Models
1.2.2 Deterministic Models
1.3 Steps involved in Decision modeling
Learning Objective: provide a method to solve a problem
Activity: problem solving
Assessment Tool: Quiz / Board work / Seatwork
Resource: OHP, Board, power-point slides
Case Discussion : OR/MS at Our Corporation, Informs: Institute of Operations
research and Management Sciences
Best Cases available
2. Mathematical Modeling - Linear Programming Problem 2
2.1 Linear Programming Problem
2.2 Requirement of Linear Programming Problem
2.3 Basic assumption of Linear Programming Problem
2.4 Application of Linear Programming Problem
2.5 Formulations of real-world problems as Linear Programming,
Learning Objective: basic knowledge for Requirement and Basic assumption of
Linear Programming Problem ;appreciate how formulation of linear equations
& inequalities are applied to real-world business problems
Activity: be able to develop / construct a problem based on the concepts of linear
equations and inequalities
Resource: OHP, Board, power-point slides

## 3. Linear Programming – The Graphical Method 3-4

3.1 Graphical solutions of some LP-models
3.2 Special cases in LP
Learning Objective: translate knowledge into symbolic/graphical mode to arrive
at a feasible solution; appreciate how linear equations & inequalities are
applied to business problems
Activity: be able to develop / construct a solution based on the concepts of linear
equations and inequalities
Assessment Tool: Problem solving / board work / seatwork
Resource: OHP, board, power-point slides

## Case: Custom Cabinets,Inc.

4. Simplex Methods: Optimizing Cost and Profit 5-8
4.1 Simplex Maximization Method
4.2 Simplex Minimization Method
4.3 Artificial Variable Technique
4.4 M-Method
4.5 Two-phase Method
4.6 Application of LPP
4.7 Advantages of LP Method
4.8 Limitations of LP Method
Learning Objective: relate resources to real-life business situations ex: maximize
profit / minimize cost; organize information and be able to translate it
into a quantifiable data following the simplex algorithm; manifest curiosity
on how resources are related to one another.
Activity: be able to organize available information into a workable simplex format
(table format) to arrive at a solution; be able to process information i.e.
maximize or minimize
Assessment Tools: board work, seatwork, construct a solution following the
simplex algorithm, computer output

Quiz 1

## 5. Assignment Problem 9-10

5.1 Introduction
5.2 Objective
5.3 Application of assignment problem
5.4 Maximization problems
Resources: slides and OHP, PC, multi-media projector

Case discussion

Quiz 4

## 6. Decision Theory 11-12

6.1 Steps in Decision Theory Approach
6.2 Decision-making environments
6.2 The Criteria for Decision –Making under Uncertainty
6.3 Expected monetary value and value of perfect information
6.4 Decision Tree construction and analysis
6.5 Decision-making under risk situations
6.6 Uses of Decision tree
Learning Objectives: describe the decision-making process as a sequence of logical
steps; consider uncertainty and risk as decision environments requiring special
methods for making decision; demonstrate how probability information can be utilized
for more effective decision making
Activities: determining the steps in decision-making; differentiating the various
environments in which decisions are made; computing expected values as
a decision criterion; evaluating probabilities according to the environment
the decision maker has
Assessment Tools: objective and/or problem solving test; discussing the assigned
homework; active class participation
Resources: slides and OHP, PC, multi-media projector

## Case Discussion : Burger Prince

Ski Right
Blake Electronics
New Drug Development
Quiz 2/Assignment
7.Game Theory 13-15
7.1 Introduction
7.2 Delimitations and Explanation of Some Important Terms
7.3 Two-Person Zero Sum Games
7.4 Games Without Saddle Point
7.5 Mixed Reduction by Dominance
7.6 Procedure for Solution of a General Game
7.7 Graphical Method
7.8 Advantages of Game Theory
7.9 Limitations of Game Theory
7.10 Case discussion
Learning Objective: Sportsman play the game of tennis, badminton, football and
hockey in a field but in our game theory, two intelligent opponents play the
game of strategies with conflicting objectives like launching ad campaigns
for competing brands, chalking out plan for poll meetings to win elections
etc. A much talked about (infamous) cricket game of match fixing and
betting was played off-the-field in the hotel room through mobiles.
Activities: determining the steps in game theory; differentiating the pure and
mixed strategy game; computing optimal value for both players ; evaluating
the value of game
Assessment Tools: objective and/or problem solving test; discussing the assigned
homework; active class participation
Resources: slides and OHP, PC,

## 8. Sequencing Problems: 16-18

8.1 Processing n Jobs and Two machines,
8.2 Processing n Jobs and Three Machines,
8.3 Processing Two jobs and m Machines Problems
8.4 Case discussion
Learning Objective: ; introduce the concept of processing jobs on different
machines ; define and establish usefulness of sequencing problem;
develop different model ;identify optimal schedule, elapsed time and idle
time for the project
Assessment Tools: objective and/or problem solving test; discussing the assigned
Resources: slides and OHP, PC, multi-media projector

## 9. Queuing Models 19-20

9.1 Introduction : Approaches for analyzing queues
9.2 Queuing System Costs
9.3 Characteristics of a Queuing System
9.4 Single-Server Queuing System with Poisson and Exponential Service Times
9.5 Multiple-Server Queuing System with Poisson and Exponential Service Times
9.6 Single-Server Queuing System with Poisson and General Service Times
9.7 Multiple-Server Queuing System with Poisson, Exponential Service Times and
Finite Population Size
Learning Objective: ; introduce the concept of processing jobs on different
machines ; define and establish usefulness of sequencing problem;
develop different model ;identify optimal schedule, elapsed time and idle
time for the project
Assessment Tools: objective and/or problem solving test; discussing the assigned
Resources: slides and OHP, PC, multi-media projector

Case discussion

TEXT BOOK: - Kapoor, V. K., Operations Research: Techniques for Management,
Sultan Chand & Sons, New Delhi, Reprint Edition, 2005.

REFERENCE BOOKS: -

## 1. Wagner ,Harney M. , Principles of Operations Research: With Applications to

Managerial Decisions Prentice Hall of India Pvt Ltd , 2nd Edition, 2004

2. Swarup, Kanti, PK Gupta and ManMahon ; Operations Research; Sultan Chand &
Sons, New Delhi 2003.

## 3. Hamdy ,Taha ,Operations Research- An Introduction , Prentice-Hall, 7th edition,

1996.

4. Gupta; P. K. and D. S. Hira, Operations Research, S. Chand & Company, New Delhi,
Reprint Edition 2006.

SUPPLEMENTAL RESOURCES:
Handouts would be distributed and uploaded on website as supplements to the students.

MAGAZINES / JOURNALS: -

This includes case studies, projects and research both on the campus and via Intranet.
Please view the e- journal: www.icfai.org through IMS website and others from the following

• http://indianjournals.com/ijor.aspx?target=ijor:ijss&type=home
• http://www.isid.ac.in/~library/statistics.htm

## 1. International Journal of Operations & Quantitative Management

2. Vikalpa: Journal of Decision Maker; IIMAhd
3. POM International Journal
4. Decision: Indian Institute of Management, Calcutta
5. Management Review : Indian Institute of Management, Bangalore
6. Journal Of Marketing Research
7. Harvard Business Review

EVALUATION CRITERIA: -

## 1. Cases, Projects and Group Discussion 10%

2. Quizzes (2 Surprise Quizzes) 20%
3. Assignments 10%
5. End Term Examination 60%

## ASSIGNMENTS: CASE STUDIES:-

There will be case studies which should be prepared as assignments in groups of 1-2 in one
week. You may interchange ideas but each of you should prepare the assignment with your
own words. On the day of submission (usually one week later), a group will be asked to
present their study and others will be expected to criticize them. Discussions will be graded.

PROJECT:-

The final project can be done individually after completion of 15 sessions. All project reports
should be typed with a maximum of 25 -50 pages (1.5 line-spacing, 11 or 12 pt. font size).
Initially, one page proposal is expected from each group about their project. The objective of
proposal is to make sure that you have decided by this stage on a specific project so that
you can spend the remaining weeks working on it.

## There are three possible outcomes from a project report as follows:

• To analyze an existing decision sciences process and suggest any improvements that
needs to be made.
• To study decision sciences practices in industry from the point of describing risks,
benefits, best practices along with industry examples of each.
• To develop a business model. The goal is to identify the business opportunity and design
the ideal supply chain for it. The project should include implementation details.
• For help one may consult a website for information’s and style can be found at http://
www.amstat.org / and http://education.forum.informs.org.

FINAL EXAM:-

The final exam will be an end-term exam that will consist of several questions of applied
nature related to the course content. More details regarding the exam format will be
provided later in the trimester.

Prof.Saloni Chitkara