Optimization and Simulation for Business

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