Course Syllabus
Fall 2022/23
Course Name: Optimization & Simulation
Course MSBA 320 Credit 3
Number: Hours:
Instructor: Dr. Walid Nasr Office OSB 461, Ext: 3798
No:
Email:
[email protected] Office Announced on Moodle
Hours:
Section: 1 Time: Wednesday Location: OSB
11:00 PM – 1:30 PM 334
Required There is no required textbook. References will be provided in class.
Material:
Some textbooks used in developing the course are:
Managerial Decision Modeling by Cliff T. Ragsdale, Thomson,
International Student Edition, 6th Edition, 2011 (applications of
optimization, decision analysis, and simulation)
Introduction to Linear Optimization by Dimitris Bertsimas and John N.
Tsitsiklis, Athena Scientific, 1997 (LP and MILP theory)
Linear and Nonlinear Programming by David G. Luenberger and Yinyu
Ye, Springer Science & Business Media, 2016 (LP and NLP theory)
Prerequisite(s)
MSBA 000 Bootcamp: knowledge of Excel and Python
Some familiarity with introductory elements of linear algebra
Course Description
This course is an introduction to quantitative models for managerial decisions making in a
complex and dynamic business environment. Students learn to develop linear, integer, non-
linear, and multi-criteria optimization models; perform sensitivity analysis; develop heuristics;
analyze decisions under uncertainty; and conduct scenario analysis using simulation. The course
relies heavily on the use of Python and Gurobi solver.
Relationship to Other Coursework
This is one of the core courses of the Master of Science in Business Analytics.
Program Learning Goals (LGs)
MSBA-LG1: Framing Business Problems in Analytical Terms: MSBA graduates will be able
to recommend appropriate analytics solutions to business problems, including defining business
requirements, relevant data, needed information technology, competitive edge, and value added
proposition to the business.
MSBA-LG2: Analytical Modeling and Solving: MSBA graduates will be able to apply
advanced analytical models and software tools to address various types of business analytics
problems.
MSBA-LG3: Analytics Communication and Management: MSBA graduates will be able to
use visualization tools to analyze data and effectively communicate complex analytical results
and insights to a mixed audience. They will also recognize the challenges of implementing
business analytics solutions, including strategic alignment, planning, project management, team
leadership, conflict resolution, negotiation, and convincing techniques.
Specific Learning Objectives (SLOs)
On successful completion of this course, students should be able to:
MSBA-LG1: Framing Business Problems in Analytical Terms
1. Recognize the types of business problems that can be solved using optimization and
simulation methods.
2. Understand how optimization and simulation can add value to business and provide
competitive edge
MSBA-LG2: Analytical Modeling and Solving
3. Formulate optimization models including linear, mixed-integer, and non-linear, single-
and multi-objective, for a wide range of business problems, and solve them using Excel,
Gurobi, and Python
4. Create simple heuristic solution methods for optimization problems
5. Formulate and solve decision models for business problems with uncertain outcomes
6. Formulate simulation models for a wide range of business problems and solve them using
Excel and Python
7. Analyze sensitivity of solutions of decision models.
8. Understand the algorithms used for solving various types of optimization models and
their relative computational complexity
MSBA-LG3: Analytics Communication and Management
9. Recommend the best course of action based on solutions of optimization, decision, and
simulation models
Instructional Methodology
Lecture, class discussion, individual and group assignments
Performance Evaluation and Grading
Quiz 1 30%
Project/Case 1 10%
Quiz 2 35%
Project/Case 2 10%
Assignments and other 15%
Total 100%
Topical Coverage
SLO Hours % of
Reference Time
*
Linear Programming (formulating models, applications, the 1, 2, 3, 7, 9 26%
graphical method, the simplex method, sensitivity analysis, 8, 9
solving in Excel, solving using Python & Gurobi)
Mixed-Integer Linear Programming (formulating models, 1, 2, 3, 7, 5 14%
applications, the branch & cut method, solving in Excel, solving 8, 9
using Python & Gurobi)
Nonlinear Optimization (formulating models, understanding 1, 2, 3, 8, 2 6%
difficulty of obtaining optimal solutions, solving in Excel, solving 9
in Python)
Optimization with Multiple Objectives (formulating models 1, 2, 3, 8,
with multiple objectives, transforming multi-objective models to 9
single-objective models)
Heuristic Optimization (creating simple heuristics in Python, 1, 2, 4, 8,
using heuristic solutions as starting solutions for solvers) 9
Decision Analysis (non-probabilistic methods, probabilistic 1, 2, 5, 7, 12 34%
method, payoff tables, decision trees, value of perfect 9
information, using sample information, linear regressions)
Simulation (choosing appropriate random distributions, 1, 2, 6, 7, 7 20%
generating random numbers, creating and solving simulation 9
models in Excel and in Python)
TOTAL 35 100%
* References the bulleted number from the Specific Learning
Objectives (SLO) section above
Use of Technology
Students are expected to use Microsoft Excel with optimization and simulation add-ins, Python,
and Gurobi.
Course Policies
Attendance: Attendance is essential to passing the course. Students missing more than
20% of classes may be dropped without notice.
Group work: Individuals must contribute their fair share to any group effort resulting in a
deliverable to the instructor. In addition, everyone in the group will be held accountable
for the quality, originality and proper sourcing of the entire group product.
Academic Honesty
Students are expected to complete all work with the highest standard of integrity in line with
AUB’s Student Code of Conduct and OSB’s Honor Code. Plagiarism, forgery, cheating or any form
of academic misconduct will not be tolerated. Any of the above may cause a student’s final
course grade to be lowered significantly or the student may receive a failing grade, depending
on the severity of the offence. Plagiarism is the presentation of the work of another as one’s
own work.
Students with Special Needs or Disabilities
AUB strives to make learning experiences as accessible as possible. If you anticipate or
experience academic barriers due to a disability (including mental health, chronic or temporary
medical conditions), please inform the instructor immediately so that we can privately discuss
options. In order to help establish reasonable accommodations and facilitate a smooth
accommodations process, you are encouraged to contact the Accessible Education Office:
[email protected]; +961 (0)1 350000 x3246; West Hall 314.
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