IE 425: INTRODUCTION TO OPERATIONS RESEARCH

Spring 2013
Section1: 102 Leonhard Bldg., MWF 1:25 - 2:15 pm
Section 2: Web

Instructor Dr. Jos A. Ventura, 356 Leonhard Bldg., 865-3841, javentura@psu.edu
Office Hours MW 3:00 - 4:00 pm, Th 11:00 am - Noon (or by appointment)

TA - Sec. 1 Carlos Parra, 207 Leonhard Bldg., 865-8083, cjp246@psu.edu

Office Hours M 10:15 - 11:15 am, TuTh 9:00 - 10:30 am (or by appointment)

TA - Sec. 2 Sang Jin Kweon, 211 Leonhard Bldg., 865-8189, svk5333@psu.edu

Office Hours MW 10:30 am - 12:00 pm, F 10:00 am - 12:00 pm (or by appointment)

Prerequisite IE 322 (Quantitative Methods in IE I)

Concurrent IE 405 (Linear Programming)

Objective The field of operations research focuses on the formulation, analysis, and implementation of
quantitative methods to support effective management decision-making. This course will introduce
students to several important types of mathematical and stochastic models, and solution techniques,
including network flow models, dynamic programming, Markov chains, queueing theory, inventory
control, and supply chain management. Such models and techniques can provide valuable insights
into several design and planning problems, and thus facilitate their effective analysis.

Textbook F.S. Hillier and G.J. Lieberman, Introduction to Operations Research, 9th Ed., McGraw Hill, 2010.

References A. Ravindran, D. Phillips, and J. Solberg, Operations Research: Principles and Practice, 2nd Ed.,
John Wiley & Sons, 1987.
W.L. Winston, Operations Research: Applications and Algorithms, 4th Ed., Thomson, 2004.
H.A. Taha, Operations Research: An Introduction, 8th Ed., Prentice Hall, 2007.

Homepage ANGEL, Penn States web-based Course Management System (CMS).

Homework Assigned weekly/biweekly; no collected; may use software that comes with text; solutions provided.

Quizzes Given weekly/biweekly on ANGEL (posted: Thursday at 5:00 pm; due: Friday at 11:00 am).

Grading 25% Midterm # 1 15% Quizzes

25% Midterm # 2 10% Case Study
25% Final
Grading
Disagreements Re-grade requests for grader omission or oversight only must be submitted within five days of the
class period in which the graded item is returned. No requests will be considered after that time.
Academic
Integrity According to the University Advising Handbook, academic integrity is the pursuit of scholarly
activity free from fraud and deception, and is the educational objective of this institution.
Academic dishonesty includes, but is not limited to cheating, plagiarism, fabrication of information
or citations, facilitating acts of academic dishonesty by others, unauthorized possession of
examinations, submitting work of another person, or work previously used without informing the
instructor, or tampering with the academic work of other students. Any violation of academic
integrity will be thoroughly investigated, and dealt with severely according to the limits of the
code.
Notes (1) A review session will be scheduled before each exam.
(2) Cell phones need to be turned off in class and during exams.
(3) Scanner locations: IME PC lab (104 Leonhard), Engr. Continuous & Distance Education (301 Engr.
Unit C), Engr. Copy Center (101 Engr. Unit A), and Pattee-Paterno Libraries

Topic Outline

Date(s) Topic Reading Assignment

Jan. 7 Course Overview and Introduction to Operations Research (OR) Chapter 1
Network Analysis: shortest path; minimum spanning tree; H&L Sections 9.1 - 9.5;
Jan. 9 - 18
maximum flow Handout
H&L Section 9.8;
Project Management: construction of project networks; critical
Jan. 23 - Feb. 1 Chapter 22;
path; PERT; CPM
Handout
Dynamic Programming (DP): principle of optimality; formulation
H&L Chapter 10;
Feb. 4 - 15 of deterministic and stochastic DP models - examples; discounting;
Handout
computational effort
Markov Chains: stochastic processes and terminology; Markovian
and stationary properties; transition and state probabilities;
Feb. 18 - March 1; H&L Chapter 16;
Chapman-Kolmogorov equations; discrete-time Markov chains;
March 11 - 15 Handout
steady-state probabilities; first passage times; classification of states;
absorption probabilities; continuous-time Markov chains
Queueing Theory: queueing processes and terminology; Littles
formula; Exponential and Poisson distributions; balance equations;
March 18 - April 3 Chapter 4: 80-92
basic queueing models (M/M/1, M/M/s, M/M/1/N, and M/M/s/N);
infinite queues in series and Jackson networks
Applications of Queueing Theory: waiting cost functions - H&L Section 17.10;
April 5 - 8
examples; decision models - examples Handout
Inventory Theory: setup, holding, and shortage costs; deterministic
economic order quantity (EOQ) models; EOQ models with quantity H&L Chapter 18;
April 10 - 26
discounts; dynamic programming models; newsvendor model; Handout
stochastic models; applications to supply chain networks

Calendar of Events
Date(s) Event
Jan. 7 Classes begin
Jan. 21 Martin Luther King Day - no classes
Feb. 11 - March 3 Final exam conflict - filing period
First Midterm (6:30 - 8:30 pm, Sec. 1: 358 Willard, Sec. 2: 362 Willard):
Feb. 20
one sheet of notes is allowed; bring pen/pencil, eraser, ruler, and calculator
March 4 - 8 Spring Break - no classes
Second Midterm (6:30 - 8:30 pm, Sec. 1: 358 Willard, Sec. 2: 362 Willard):
April 3
one sheet of notes is allowed; bring pen/pencil, eraser, ruler, and calculator
April 5 Late drop - deadline
April 15 Case study report due date
April 26 Classes end
Final Exam: three sheets of notes are allowed; bring pen/pencil, eraser,
To be announced
ruler, and calculator