SIMULATION FOR BUSINESS FALL 2011

Class of BUS 125, Fall 2011

Class of MGT 239, Fall 2011

• Homepage:    http://ilearn.ucr.edu
• Prerequisite:  probability and statistics, Excel, “common sense”
• Required Text:
  MS: Management Science: The Art of Modeling with Spreadsheets, by Stephen G. Powell, Kenneth R. Baker, Wiley, 3rd edition, 2010
  ASM: Applied Simulation Modeling, by Seila, Ceric and Tadikamalla, Duxbury Press, 2003
• References:

  Probability Models for Economic Decisions, by Roger B. Myerson, Duxbury Press, 2005
  Simulation, by Sheldon M. Ross, Academic Press, 4 edition, 2006

SCHEDULE (Chapters 1-4, 10, & Appendix)

1. WEEK 1
   1. Syllabus and the tentative schedule
   2. Introduction of simulation: system, analytical and simulation model (Chapter 1)
   3. HW1 due at 9am, Sept. 28 on iLearn
   4. Excel tutorial: 1, 2, 3 , add-in
   5. Reading:
      Chapter 3 in MS: basic Excel skills
      Chapter 1 in ASM: introduction
      Appendix in ASM (review probability and statistics for week II)
2. Week 2
   1. Review basic statistics and probability
   2. Estimate
   3. The sale promotion model
   4. Team sign-up
      BUS 125 http://tinyurl.com/bus125f11team
      MGT 239 http://tinyurl.com/mgt239f11team
   5. HW2 due on Oct. 4 at 9am on iLearn
   6. Reading:
      Read chapters 2.1, 2.4, 2.5, 2.6 and Appendix in ASM
      Read Chapter 7 in MS: data analysis for modeling
      Add-in: http://home.uchicago.edu/~rmyerson/addins.htm
3. Wee 3
   1. Inverse transform method for generating random variates (chapter 2.5)
   2. Simulate a dinner deal
   3. Sample project topics (iLearn)
   4. HW3 due at 9 am Oct.11, on iLearn
   5. Reading:
      chapters 2.5, 2.6 on ASM
      lecture slides 4
      Add-in: http://home.uchicago.edu/~rmyerson/addins.htm
4. Week 4
   1. Simulate a newsvendor inventory model (chapter 2.6 on ASM)
   2. Simulate an insurance model (chapter 2.9 on ASM)
   3. HW4 due at 9am on Oct. 18, iLearn
   4. Reading:
      chapters 2.6 and 2.9 on ASM for in-class exercise
      chapters 4.1, 3.1, 3.2, 3.3, 3.4 on ASM for next week
5. Week 5
   1. Dynamic simulation (chapter 4.1)
   2. Simulate the evolution of a stock’s price (chapters 3.1, 3.2)
   3. Pricing Asian options (chapters 3.3, 3.4)
   4. Risk management and financial hedging with options
   5. HW5 due at 5am on Oct. 25, iLearn
   6. Reading: Chapter 10 for team project
6. Week 6
   1. Evaluate investment strategies
   2. A dynamic, multiperiod supply chain management problem
   3. HW6, due on Nov. 1, 9am on iLearn
   4. Project proposal due on Nov. 1, 9am on iLearn
7. Week 7
   1. Joint pricing and inventory management in car rental business
   2. Midterm 1, open book/notes in class, 80 minutes
   3. HW7 due on Nov. 8, 9am on iLearn
8. Week 8
   1. Team presentation and project discussion
   2. Revenue Management
   3. HW 8 due on Nov. 17, 9am on iLearn
   4. Project interim report due on Nov. 17, 9am on iLearn
9. Week 9
   1. Nov. 15: Team project meeting
   2. Nov. 17: Auctions and bidding
   3. HW9 due on Nov. 24, 9 am on iLearn
10. Week 10
    1. Nov. 22: Midterm 2
    2. Nov. 24: Holiday
11. Week 11
    1. Dress code for project final presentation
    2. Project presentation
12. Final Week
    1. Final project report due on Dec. 6, 9am on iLearn
    2. Peer review report due on Dec. 6, 9am on ilearn

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