Solution Approaches (2)
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Intuition from the graphic analysis
If the problem has at least one optimal solution, then an
optimal solution can be found among the corner points
of the feasible region
We limit our search for optimal solution to

Problem Formulation (3)
Network Problems
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Types of Networks
Physical network
Transportation and logistics networks
Airline network
Communication network
Oil/gas pipeline network
Logical network (network as a modeling tool)
Social/interperso

Problem Formulation (1)
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Outline LP formulation and applications
Single-period planning problems
Product mix planning
Portfolio management
Make-or-buy decision
Multi-period planning problems
Production and inventory control
Work force sched

Project selection (1)
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Outline (Chapter 17)
Overview of project selection and portfolio management
Evaluating individual projects
Comparing and selecting projects
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Process for Successful Projects
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Strategic manag

Binary Decisions and Assignment
Problem
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Outline
Basic assignment problem (balanced)
Imbalanced assignment problem
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Assignment problem
Pairing/matching objects from two distinct sets
Matching jobs and machines
Assigning projec

Solution Approaches (1)
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LP solution approaches
Graphic analysis
Best for 2 decision variables
Produce great intuition
Understand binding vs non-binding constraints
Simplex method
Built on the intuition from graphic analysis
Implemented in

Problem Formulation (2)
OBA 466/566
1
Outline LP formulation and applications
Single-period planning problems
Product mix planning
Portfolio management
Make-or-buy decision
Multi-period planning problems
Production and inventory control
Workforce schedu

Sensitivity Analysis
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Why sensitivity analysis?
Model parameters (input data) are rarely known with
certainty
Cost coefficients, resource availability, production yields
How much can we trust the optimal solution obtained
from the mathemat

Introduction to Project Management
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Whats a Project?
Goal-oriented
Aims at a specific end result or deliverables
Somewhat unique
Non-routine
In contrast, operations are routine and repetitive
Time- and resource-constrained
Temporary; has t

Break Even Analysis
Break Even Analysis
1)
Break Even Sales
2)
Make Versus Buy (Break Even Volume)
3)
Process Choice Decisions (Break Even
Volume)
2
Break Even Analysis
Break Even Sales (1)
FC = Fixed Cost
vc = variable cost of production
p = sales price