Optimization Methods in Management Science
Course facts
- Payment: Free, no certificate
- Credits: Non Credit
- Learning style: Self-paced, start anytime
- Resources: Lecture Notes; Problem Set Solutions; Problem Sets; Projects
- Before you start: This subject has no formal prerequisites.
MIT OpenCourseWare details
- As taught in: Spring 2013
- Department: Sloan School of Management
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Linear and integer programming, networks and decision trees, with Excel Solver, spreadsheets and solved problem sets, plus a team modeling project.
School bus schedules, hospital rosters and truck routes all come down to choosing the best option under constraints. This class teaches the theory, algorithms and uses of optimization for problems like these, in logistics, manufacturing, marketing and finance. Excel Solver is the everyday tool, and teams model a real problem they pick themselves.
What You Will Achieve
- Formulate linear and integer programs
- Solve models with the simplex method and Excel Solver
- Interpret sensitivity analysis and shadow prices
- Model a real problem with a team and report results
Program Overview
Linear Programming
The longest module, and the foundation.
- Geometry and visualization of linear programs
- The simplex method
- Sensitivity analysis
- Two-person zero-sum game theory
Integer Programming
Decisions that must be whole numbers.
- Integer programming formulations
- Branch and bound
- Cutting planes
Networks and Decisions
Three shorter modules.
- Shortest paths and network flows
- The traveling salesman problem
- Decision trees and the value of information
- Behavioral economics
Course Completion
Job Outlook
These skills are relevant to operations research, supply chain analysis, business analytics and management consulting.
Good for: Business and engineering students who want to learn to model and solve optimization problems using spreadsheets, with worked solutions.
Keep in mind: There are no lecture videos, and it dates from 2013. Solver is limited to 200 decision variables, so larger projects need other tools, which you would have to learn yourself.
Bottom line: A practical, thoroughly supported introduction to optimization with a real project at its center.
Frequently Asked Questions
What software is used?
Microsoft Excel with the Solver add-in, used frequently. For bigger problems the project guide names alternatives such as CPLEX, AMPL and OpenSolver.
Is a textbook required?
No. Students can refer to Applied Mathematical Programming by Bradley, Hax and Magnanti, which is out of print but available free online.
What could a team project be about?
Sample topics include school bus scheduling, assigning hospital residents, portfolio optimization, cell phone tower placement and truck routing. Teams define the problem, collect data, build a model and solve it.
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