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 modelled 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 presented by invited speakers.

There is a more technical lecture available called Mathematical Optimization, which is recommended for the more mathematically interested students.

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

Schedule

Script

The script accompanying the lecture will be sold by the assistants in the first lectures of the semester.

Exams

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

MID TERM EXAM:
Participation at the mid-term examination is elective as an option.
Date: November 10, 2010
Time: 10:15 am - 11:45 am
Place: HG D 1.1
Language of examination: English
Mode of examination: written, 90 minutes
Written aids: lecture notes (script) and a handwritten resume of 4 pages

Complaints: If you find any errors in the mid-term exam's correction, inform one of the assistants by November 30, 2010. After this date, complaints are not accepted any more.
If you miss the mid-term examination because of any reason, there is no possibility to retake the exam.

SESSION EXAM:
Please check the course catalogue of ETH and mystudies.ethz for details.

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

Exercises

The first exercise session will take place on September 22.
More information concerning the exercises can be found here.