Methods of Operational Research

Overview

Deterministic and stochastic inventory models; simple and adaptive forecasting; theory of replacement of equipment; quality control, acceptance sampling by attribute and variable; network planning including the use of PERT, LP, Gantt charts and resource smoothing; decision theory, including utility curves, decision trees and Bayesian statistics; simple heuristics.

Learning Objectives

On completion of the module, it is intended that students will be able to: demonstrate understanding of the Economic Order Quantity model and its use in determining minimum inventory costs; use Lagrange multipliers to obtain optimal batch sizes; use dynamic programming techniques to determine optimal replacement policies; determine both single and double sampling plans and understand how to decide which is the more appropriate in different circumstances; determine critical activities of a project and apply linear programming methods to determine the optimal duration; use decision tress to determine an optimal course of action; use a range of techniques based on past experience to forecast future sales.

Skills

Formulating problems in accordance with simple mathematical models. Use of spreadsheets.

Assessment

None.