Operational Research

Course ID:

ECO_352

Semester:

6th

Year of Study:

3rd Year

Category:

Economics Elective

For Erasmus Students:

No

eclass URL

Learning Outcomes

Operational Research is a quantitative course aiming at introducing students to the concept of business research and more specifically into problems related to the management and coordination of business in an organization. The course begins with the analysis of a real problem as an example and the corresponding data collection of this problem. It continues with the construction of a mathematical model (modeling) that describes the essence of the real problem and ends with solving, drawing conclusions and controlling solutions.

By the end of this course the student will be able to:

1) Knowledge

Understand the mathematical theory (concepts, theorems, proofs) related to this cource.
Identify the theory-related mathematical formulas and describe how to solve them (e.g M-Method).

2) Skills

Distinguish the different cases of mathematical problems and explain their use in relation to the mathematical problem posed.
Evaluate key elements of the theory (e.g. solution through Simplex technique).

3) Capabilities

Combine mathematical theory with economic problems that fall within the subject and successfully proceed with their modeling.
Rebuild the financial problem (e.g. Maximize a business's profit) and explain the solution found.
Be able to evaluate, compare and interpret the economic dimension of the solution in the new context given.
Reformat the problem based on its data and proceed to a new solution (e.g. sensitivity analysis).
Combine the theoretical framework with the use of a computer program (R, Lindo, Excel) and evaluate its results.

By the end of this course the student will, have developed the following skills:

Ability to exhibit knowledge and understanding of the essential facts, concepts, theories and applications related to the specific course.
Ability to apply this knowledge and understanding to the solution of problems.

Course Contents

Introduction to operational research. Deterministic & stochastic methods in operational research.
The basics of linear programming (LP). Graphical solutions of LP problems. The general LP problem. Interpretation & mathematical formulation.
Applications of LP to well-known operational research problems.
The Simplex Method, typical form, algorithm. Problem solving using the Simplex Method.
The M-method and the TWO-PHASE method.
Duality, properties of dual problems and the Dual Simplex. Sensitivity analysis.
Special cases of LP problems.
The transportation problem.
Integer and mixed LP problems.
Solve LP problem using R

Teaching Activities

Lectures (3 hours per week) and Tutorials (2 hours per week)

Supplementary learning based on the material of the open course entitled "Operational Research (Applications with R Software)": https://eclass.upatras.gr/courses/ECON1318/

Teaching Organization

*Activity*	*Semester workload*
Lectures (3 hours per week x 13 weeks)	(3x13) 39 hours
Tutorials (2 hour per week x 13 weeks) - solving of representative problems using the open source software of R	(2x13) 26 hours
Hours for private study	85 hours
Total number of hours for the Course (25 hours of work-load per ECTS credit)	150 hours (total student work-load)

Assessment

a) Written examination at the end of the semester (70%)

b) Individual assignment (30%) involving modeling, solving and developing policy proposals for problems through the use of the R program.

Use of ICT

Use of Information and Communication Technologies (ICTs) (e.g. PowerPoint) in teaching. The lectures for each chapter are uploaded on the e-class platform in the form of ppt files, where from the enrolled students can freely download.
Use of R program to consolidate theory and solve problems.