EC24N or M20B Mikhail-Ann Urquhart 1-876-512-3281 Room 12

ECON3037 : Operations Research I

Course Description This course is the first of two in Operations Research (OR) at the undergraduate level.  OR I covers essential topics in operations research while OR II is tailored to provide an introduction to Game Theory.  The course is divided into two parts.  Part 1 deals with topics in static optimization while part 2 deals with topics in dynamic optimization.  Throughout the course, emphasis will be placed on problems of economic importance, involving individual or firm decision making.             Computer laboratory sessions will form a critical part of instruction in this course.  The computer sessions will equip you with the analytical tools necessary for solving practical problems.  Your competence in the use of OR software will be tested through a class project involving formulating an economic model to a given problem, finding solution to the model, and interpreting the solution of your model in a written report. Prescribed Texts Taha, Hamdy A., 2003. Operations Research: An Introduction, 7th edition. Upper Saddle River, NJ : Prentice Hall.   Chiang, Alpha, 1999. Elements of Dynamic Optimization. Waveland Press. Recommended Texts Lee, S. M., L.J. Moore and B.W. Taylor, III, 1990. Management Science, 3rd edition. Needham Heights, MA : Allyn and Bacon. Course Outline TOPICS PART 1:  STATIC OPTIMIZATION  (Taha) 1.               Introduction to Linear Programming Ch 2: Construction of LP Model, Graphical Solution   2.               The Simplex Method Ch 3: Standard LP form, The Simplex Algorithm, Maximization Problem   3.               Duality and Sensitivity Analysis Ch 4: Relationship between Dual and Primal Models, Economic Interpretation of Dual Solutions, Sensitivity Analysis  4.               Transportation and Assignment Models Ch 5: The Transportation Algorithm, Machine Assignment Model, Transshipment Model   5.               Goal Programming Ch 8: Single Objective vs. Multiple Goals, Model formulation, Goal-Programming Algorithm   6.               Integer Linear Programming Ch 9: Branch-and-Bound Algorithms, Cutting Plane Algorithm   PART 2:  DYNAMIC OPTIMIZATION  (Chiang) 7.               The Calculus of Variations Ch 2: The Fundamental Problem Ch 3: The Transversality Conditions   8.               Optimal Control Theory Ch 7: The Maximum Principle Course Assessment Computer Application Project:         15% Problem Sets                                   10% Mid-semester Examination:              15% Final Examination:                             60%