Optimization and Simulation for Business

Universidad Carlos III de Madrid

Course Description

  • Course Name

    Optimization and Simulation for Business

  • Host University

    Universidad Carlos III de Madrid

  • Location

    Madrid, Spain

  • Area of Study

    Business, Business Administration, Business Management, Economics, Finance, Mathematics, Statistics

  • Language Level

    Taught In English

  • Prerequisites

    STUDENTS ARE EXPECTED TO HAVE COMPLETED
    Mathematics
    Statistics

  • Course Level Recommendations

    Upper

    ISA offers course level recommendations in an effort to facilitate the determination of course levels by credential evaluators.We advice each institution to have their own credentials evaluator make the final decision regrading course levels.

    Hours & Credits

  • ECTS Credits

    6
  • Recommended U.S. Semester Credits
    3
  • Recommended U.S. Quarter Units
    4
  • Overview

    COMPETENCES AND SKILLS THAT WILL BE ACQUIRED AND LEARNING RESULTS.
    1. Knowing how to model and implement optimization methods and simulation techniques in decision-making problems in business.
    2. Knowing the conditions to be satisfied by solutions of optimization problems.
    3. Learn to use tools of modern optimization and simulation techniques in an efficient way.

    DESCRIPTION OF CONTENTS: PROGRAMME
    1. Introduction Process modeling in decision-making problems
    2. Optimization of linear models
    Optimality Examples: financial planning, etc..
    3. Optimization of discrete models
    Optimality Examples: project management, electricity markets, etc.
    4. Otimization of non-linear models
    Optimality conditions
    Least-squares methods
    Newton's Method
    Examples: estimation of "betas" of stocks, portfolio management, etc.
    5. Simulation
    Examples: stock prices, overbooking, etc.

    LEARNING ACTIVITIES AND METHODOLOGY
    Theory (3 ECTS), Practice (3 ECTS).
    14 lectures with supporting materials available on the Web. Another 14 practical sessions (exercises and computer labs).

    ASSESSMENT SYSTEM
    The assessment will be made by weighting the continuous evaluation (60%) and the final exam (40%), no minimum grade in any of these two parts. Continuous evaluation will based on two exams and two homeworks. The students who get good grades of continuous evaluation (more than 7.5 over 10) do not need to make the final exam. In this case, the final assessment will coincide with that of the continuous evaluation.

    % end-of-term-examination: 40
    % of continuous assessment (assigments, laboratory, practicals?): 60

    BASIC BIBLIOGRAPHY
    - 1. Winston, W.L., Albright, S. C. Practical Management Science, Duxbury Press, 2009

    ADITIONAL BIBLIOGRAPHY
    - 2. Ragsdale C. T. Spreadsheet Modelling and Decision Analysis , Thomson, 2005
    - 3. Lawrence, J.A., B.A. Pasternack Applied Management Science , Wiley, 2002
    - 4. Russell, R.S. and Taylor, B. W. Operations Management, Prentice Hall, 2003

Course Disclaimer

Please note that there are no beginning level Spanish courses offered in this program.

Courses and course hours of instruction are subject to change.

Eligibility for courses may be subject to a placement exam and/or pre-requisites.

Credits earned vary according to the policies of the students' home institutions. According to ISA policy and possible visa requirements, students must maintain full-time enrollment status, as determined by their home institutions, for the duration of the program.

ECTS (European Credit Transfer and Accumulation System) credits are converted to semester credits/quarter units differently among U.S. universities. Students should confirm the conversion scale used at their home university when determining credit transfer.

Please reference fall and spring course lists as not all courses are taught during both semesters.

Availability of courses is based on enrollment numbers. All students should seek pre-approval for alternate courses in the event of last minute class cancellations

Please note that some courses with locals have recommended prerequisite courses. It is the student's responsibility to consult any recommended prerequisites prior to enrolling in their course.