IND E 512: Intro to Optimization
Models
Lecture 3: Game Theory, Regression
Prof. W. Art Chaovalitwongse
Business is a game, the greatest game in the world if you know how to play it.

IBM founder Thomas J. Watson
Game theory forces you to see a business
IND E 512: Intro to Optimization
Models
Lecture 5: (Mixed) Integer Programming Solution
Methods
Prof. W. Art Chaovalitwongse
MIP MODELING ART&SCIENCE
Production Planning Problem
Production Planning Problem
Production Planning Problem
Traveling Salesman Pr
IND E 512: Intro to Optimization
Models
Lecture 4: (Mixed) Integer Programming
Prof. W. Art Chaovalitwongse
Integer Programming Definition
An Integer Programming problem (IP) is a Linear Programming (LP) in
which some or all the variables are required t
IND E 512: Intro to Optimization
Models
Lecture 6: Network Models
Prof. W. Art Chaovalitwongse
Network Models
Use of network models are widespread
Transportation networks, communication networks, electrical
networks, social networks, financial networks
IND E 599 INTRODUCTION TO OPTIMIZATION MODELS
EXAM 1
10/28/2015 Take Home (Due: 11/04/2015 11:59pm)
Read the instructions carefully before start your exam.
There are a total of 5 questions with the total score of 100 points + 5 bonus points.
Some question
IND E 512: INTRODUCTION TO OPTIMIZATION MODELS
HOMEWORK 2 (100 points)
Due on 10/14/2015 (in class)
1) (40 points) Use the following data to construct an optimal portfolio optimization problem and
solve it using any optimization solver of your choice. Var
IND E 512: INTRODUCTION TO OPTIMIZATION MODELS
HOMEWORK 3 (100 points)
Due on 10/28/2015 (in class)
1) (50 points) Players I and II simultaneously call out one of the numbers: one or two.
Player Is name is Odd; he wins if the sum of the numbers is odd. Pl
IND E 512: INTRODUCTION TO OPTIMIZATION MODELS
HOMEWORK 5 (100 points)
Due on 11/20/2015 (in class)
1) (50 points) A company must determine on which
of four possible sites to build warehouses. The
amortized monthly cost at each site has two
components. Th
IND E 512: INTRODUCTION TO OPTIMIZATION MODELS
HOMEWORK 6 (100 points)
Due on 12/4/2015 4.30pm
1) (50 points) Art lives in Seattle. He owns insurance agencies in Everett (Node 1), Bothell
(Node 2), Kirkland (Node 3), Renton (Node 4), Issaquah (Node 5) and
IND E 512: INTRODUCTION TO OPTIMIZATION MODELS
HOMEWORK 1 (100 points)
Due on 10/7/2015 (in class)
1) (30 points) Graphically solve the following LP, find its optimal solution and all basic
feasible solutions:
max z = 5 x1 + x2
s.t.
2 x1 + x2 6
x1 + x2 4