System Modeling and Optimization

Short description

This lecture introduces the most common models and methods of Operations Research in the field of industrial engineering. In a first step linear optimization problems will be modeled and solved (with Excel). Furthermore, discrete problems which typically appear in questions related to networks will be discussed. An analysis of dynamic and stochastic optimization problems will be done on the example of inventory control. To keep a close relation to problems occurring in industry some case studies will be presented by invited speakers.

Goals

1. Introduce students into building and using quantitative models in a business/industrial environment (using Excel)
2. Introduce some basic optimization techniques:
   - Deterministic models (LP and extensions, combinatorial problems, network-flow)
   - Stochastic models in inventory and finance
3. Discuss the integration of quantitative models into the managerial decision process

Tentative Schedule

Script

There will be a script that covers parts of the readings.

The complete script can be found here.

We recommend to choose the color-option for printing, because some figures are hardly readable in black and white.

Exams

Two exams are held for this lecture: mid-term and session exam.

MID-TERM EXAM

In the mid-term exam you have the opportunity to improve the grade of the session exam.
The participation at the mid-term exam is optional.

Date: November 02, 2011
Time: 10:00 am - 12:00 am
Place: HG D 1.1
Language: English
Mode: written, 90 minutes

Complaints: If you find any errors in the mid-term exam's correction, inform one of the assistants by November 30, 2011. After this date, complaints are not accepted any more.
If you miss out on the mid-term exam for any reason, there is no possibility to retake the exam.

SESSION EXAM
The session exam will take place on February 10, 2012.
Please check the course catalogue of ETH and mystudies for details.

Exchange students that cannot participate at the session exam (e.g. due to compulsory attendance at their home university, internship, ...) have the possibility to write the exam at their home university. Please contact the Mobilitätsstelle for details if this applies to you.

GRADING
The final grade for the lecture is computed as follows:
final grade = maximum{s, 0.75*s + 0.25*m},
where "s" is the grade achieved in the session examination, and "m" is the grade achieved in the mid-term examination.
If you miss the mid-term examination for any reason, the final grade equals the grade achieved in the session examination.

Exercises

The first exercise session will take place on September 21, 2011.
More information concerning the exercises can be found here.