Course Outline
Indian Institute of Management Calcutta
Programme: PGPEX/MBAEX
Name of the Course: Operations Research in Managerial Decision Making
Core / Elective: Core Cap (for Elective): NOT APPLICABLE
Credit: Request the office to fill in
Academic Year & Term: 2025-26
Course Coordinator: Prof. Megha Sharma
Instructor: Bodhibrata Nag (Sessions 1 – 5)
Affiliation: IIM Calcutta
Instructor: Megha Sharma (Sessions 6 – 10)
Affiliation: IIM Calcutta
Introduction to Course /Course Description
Course Objective and Key-takeaways from the course
Operations Research is a discipline devoted to applying scientific methods to decision making. Operations
Researchers utilize mathematical modeling techniques in concert with empirical observation and occasional
experimentation to arrive at solutions to management problems in government and industry. This course introduces
students to Operations Research through a combination of lectures and computer models using EXCEL. Model
formulation and use of the computer will be emphasized in applications to a broad spectrum of management
problems.
Programme Level Learning Goals (7)
1. Possess the ability to think critically and find solutions to managerial problems
2. Develop the capacity to articulate their thinking and ideas through written, oral and non-verbal
communications in a managerial context
3. Acquaint themselves with established and emerging technologies for effective decision making
International Components in your course (if any)
None
Pre-requisites
None
Required Text Book(s):
[RSHB]: Quantitative Analysis for Management by Barry Render, Ralph M. Stair, Michael E. Hanna, Trevor S. Hale,
Pearson
[AW]: Management Science Modeling by Christian Albright and Wayne L. Winston, Cengage Learning
Recommended Text Book(s):
None
Course Pack Distribution to students
Course material (if required) will also be issued from the Programme office
Technology enabled learning component for your course
The course includes use of MS Excel Solver and LINGO software for solving linear and integer programming
problems.
Session Plan
S No. Topic Intended learning outcome References
1 Introduction to Linear The students should know about the [RSHB]: Chapter 7 & 8
Programs (LP) theory of Linear Programming (LP). [AW]: Chapter 4
What is a linear They should identify the criteria that
program? make an optimization model qualify as Problem Sets and Instructor
How to formulate a linear program. Notes will be provided to
simple linear programs? The participants should be able to students
Solving linear programs formulate and solve a LP program
through graphical using the Excel solver. Moreover, they
methods should know how a two variables LP
Solving linear programs problem can be solved using the
using MS Excel Solver graphical method.
2 Linear Programs The participants should be able to [RSHB]: Chapter 7 & 8
Anomalies: Unbounded, develop a linear programming model. [AW]: Chapter 4
infeasible, and multiple The participants should be able to
optimal solutions identify the common anomalies in LP, Problem Sets and Instructor
Advanced Formulation their causes, and implications for real Notes will be provided to
Sensitivity analysis and life problems. students
interpretation: They should be able to perform and
Explaining shadow interpret the sensitivity analysis and
price and reduced cost understand its implication in practice
associated with a LP
3&4 Introduction to Integer The participants should be able to [RSHB]: Chapter 10
Linear Programs (ILP) develop a integer linear programming [AW]: Chapter 6
What is an integer linear model.
program? The participants should know and Problem Sets and Instructor
How to formulate a understand the difficulty and novelty Notes will be provided to
simple linear integer associated with integer programs. students
program? They should be able to distinguish an
Does rounding-off an ILP from a LP. They should
LP solution work? understand the intricacies that make
Solving ILPs using MS integer programs difficult to solve and
Excel Solver how the LP relaxation may or may not
be a good solution for ILP.
They should be able to solve ILPs
using the Excel solver.
5 Integer Linear Programs The student should know different [RSHB]: Chapter 10
(ILP) integer programming modeling [AW]: Chapter 6
Formulating Binary techniques, such as modeling if-else
Conditions constraints and show how alternative Problem Sets and Instructor
Formulating if-else formulations are easier to solve. Notes will be provided to
conditions or may not be a good solution for ILP. students
Case discussion using Also, they should understand other
MS Excel Solver modeling techniques that enable
seemingly non-linear constraints to be
formulated as ILPs.
6 Transportation Problems The participants should appreciate the [RSHB]: Chapter 9
To understand the model properties that make
underlying problem transportation problems easier
structure for compared to generalized LP. They
transportation problems should be able to formulate problems
Formulating problems from non-transportation contexts as
from non-transportation transportation problem and be able to
contexts as solve them.
transportation problems
Solving transportation
problems and perform
sensitivity analysis
7 Goal Programming The participants should understand the [AW]: Chapter 16
What is multiobjective concept of multiobjective
optimization? optimization.They should be able to
How to formulate apply Goal Programming to
multiobjective multiobjective optimization problems,
optimization problems? and solve such problems using MS
Using MS Excel Solver Excel Solver.
to Goal Programming
Problems
8 Decision Making Under The participants should know the [RSHB]: Chapter 3
Uncertainty and Risk different decision-making [AW]: Chapter 9
What decision-theory environments and the decision making
models are available for criteria applicable in these
different decision- environments.
making scenarios?
How to use Expected
Monetary Value
Optimization model for
Decision Making under
Risk?
Understanding the
concept of Expected
Value of Perfect
Information and its real
life applications
9 Decision Tree Analysis The participants should understand the [RSHB]: Chapter 3
What is a decision-tree? concept of decision trees and their [AW]: Chapter 9
How to draw the application in multi-stage decision
decision tree for a making. They should be able to
decision-making under compute the worth of sample
risk problem? information using decision trees.
How to solve a decision
tree?
How to compute the
expected value of
sample information?
10 Data Envelopment Analysis The participants should know how to Material to be distributed in
evaluate the relative performance of class
decision-making units such as
hospitals, schools, business units etc.
Participant should be able to identify
efficient and inefficient decision-
making units.
Evaluation Components
Components Weightage
Quiz 1 20%
Quiz 2 20%
End Term Examination 30%+30%
