Course code IST3
Course title Operational Research
Institution Instituto Superior Tecnico Lisboa
Course address web.ist.utl.pt/mcasquilho
City Lisbon
Minimum year of study 3rd year
Minimum level of English Good
Minimum level of French None
Key words Operational Research, Operations Research, Optimization, Linear Programming, Monte Carlo simulation, Queueing (Waiting Line Theory), Travelling salesman problem 
Language English
Professor responsible Miguel Casquilho
Telephone +351.21.8417310
Fax +351.21.8499242
Email mcasquilho@ist.utl.pt
Participating professors
Number of places Minimum: 10, Maximum: 18, Reserved for local students: 0
Objectives

In a time of competitiveness and scarcity of raw materials, an industrial (indeed, any) system must work in a state not far from its optimum, "small" improvements being sometimes crucial for success or even survival.  Operational Research (OR*) supplies specific techniques to optimize and manage, and promotes habits of analysis arising from the inspection of the system model. The central objective of OR is optimization, i.e., "to do things best under the given circumstances", to the greatest profit or smallest cost.  This general concept has many applications: agricultural planning, biotechnology, distribution of goods and resources, engineering systems design, environmental management, health care management, inventory control, manpower and resource allocation, manufacturing of goods, military operations, production process control, sequencing and scheduling of tasks, telecommunications, traffic control.

Only some of the applications mentioned will be addressed in the course (see Programme below).  The computer and the Internet will be indispensable tools. *”Operations Research” in American English.
Programme to be followed

Linear Programming Historical note.  Model.  Dantzig’s simplex algorithm; matrix method; duality.  Computational resolution.

Transportation Problem  Model.  Stepping-stone algorithm.  Computational resolution.

Monte Carlo simulation Sampling experiments on models.  Random number generation.

Queueing (waiting line) theory Structure of the models.  Poisson arrivals, exponential servicing.  Infinite and finite populations.  Computational resolution. (This chapter introductorily or if time permits.)

Inventory management Models.  Uniform demand; random demand.  Optimal inventory level.  Computational resolution. (This chapter introductorily or if time permits.)

Travelling Salesman Problem  Route optimization in cycles.  Computational resolution. (This chapter introductorily or if time permits.)

Prerequisites Basic knowledge of:  Linear Algebra; Calculus; Probability & Statistics. Basic knowledge of Excel.
Course exam Written exam (on the last day of course); open book; made on computer; delivered by e-mail.
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