course-details-portlet

TIØ4126 - Optimization and Decision Support for Industrial Business Planning

About

Examination arrangement

Examination arrangement: School exam
Grade: Letter grades

Evaluation Weighting Duration Grade deviation Examination aids
School exam 100/100 4 hours C

Course content

This course covers use of mathematical models as decision support for planning in technological organizations. The planning problem will often consist of maximizing or minimizing an economical objective under scarce resources and technological requirements. The planning is done by 1) formulating a simplified model of the problem, 2) calculate an optimal solution for the model and 3) interpret and implement the calculated solution. This course covers both deterministic and stochastic problems. The following subjects are covered: Different optimization models (linear, non-linear, simple integer and network models), decision trees, simple inventory-, queuing theory and simulation. This course will for some subjects continue directly from subjects taught in TIØ4118 Industrial economic Analysis, by optimizing non-linear microeconomic problems and by modeling investment decisions under hard budget constraints. In addition will the course cover the use of commercial spread sheet software on models both for optimization and simulation.

Learning outcome

Position and function within the study program: The course is compulsory in the third year of the MTIØT study program. The course requires knowledge from basic courses in mathematics, statistics, computer science and the course TIØ4118 Industrial economic Analysis. The course shall contribute to fulfill learning objective 2.4 in the detailed list of learning objectives for MTIØT, where broad and sound basic knowledge in administrative and economic areas are demanded. By the end of the course, the students should be able to: - define what is meant by operations research, and account for which phases are normally part of a study applying operations research - describe the assumptions on which linear programming (LP) is built - formulate LP models on the basis of verbal problem descriptions - solve LP problems graphically (for two variables), by using spreadsheets , and by hand using the simplex method, both algebraic and in tabular form - perform sensitivity analysis on the basis of optimal simplex tableaus, and describe the economic information that can be drawn from the analysis - formulate integer programming models, describe some principles that can be used to solve problems formulated using such models, and solve them using spreadsheets - formulate non-linear programming models and identify classes of non-linear programming models based on properties of the objective function and the constraint set - solve some types of non-linear problems using the method of Lagrangean multipliers, KKT conditions, or spreadsheets - indicate which additional challenges arise for problems where the parameters are not known with certainty - formulate and solve some problems with uncertainty using decision trees - calculate the expected value of experimentation and the expected value of perfect information - formulate different types of network models and solve these - create queueing models based on verbal problem descriptions - derive formulas for queueing models based on exponential distributions - derive formulas for simple inventory models, including models with uncertainty - describe discrete event simulation and differentiate this from other types of simulation - implement simple simulation models in spreadsheets - discuss the pros and cons of the different types of models and the associated solution methods in view of specific problems.

Learning methods and activities

Lectures, cases and exercises with and without computers.

Compulsory assignments

  • Exercises

Further on evaluation

If there is a re-sit examination, the examination form may change from written to oral.

Course materials

Given at the start of the course.

Credit reductions

Course code Reduction From To
SIS1010 3.7 AUTUMN 2008
TIØ4115 3.7 AUTUMN 2008
TIØ4125 3.7 AUTUMN 2008
BØA2020 3.7 SPRING 2017
TIØ4120 3.7 AUTUMN 2018
More on the course

No

Facts

Version: 1
Credits:  7.5 SP
Study level: Third-year courses, level III

Coursework

Term no.: 1
Teaching semester:  SPRING 2024

Language of instruction: Norwegian

Location: Trondheim

Subject area(s)
  • Technological subjects
Contact information
Course coordinator: Lecturer(s):

Department with academic responsibility
Department of Industrial Economics and Technology Management

Examination

Examination arrangement: School exam

Term Status code Evaluation Weighting Examination aids Date Time Examination system Room *
Spring ORD School exam 100/100 C 2024-05-13 15:00 INSPERA
Room Building Number of candidates
SL111+SL210 Sluppenvegen 14 112
Summer UTS School exam 100/100 C INSPERA
Room Building Number of candidates
  • * The location (room) for a written examination is published 3 days before examination date. If more than one room is listed, you will find your room at Studentweb.
Examination

For more information regarding registration for examination and examination procedures, see "Innsida - Exams"

More on examinations at NTNU