MANAGEMENT SCIENCE

ECONOMICS 115

Spring 2014

DONALD WITTMAN

 

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For the May 23 midterm you need to know chapters 17A-21B, 22B (not 21C, 22A, 23, 24). You need to know #7 review questions, except for problem 4.




ANSWER KEY TO MOST RECENT HOMEWORK                   ANSWER KEY TO MOST RECENT EXAM



 

INTRODUCTION

 

This course translates real economic problems faced by industry and government into mathematical formulae that can be solved by a computer program. To give substance to this statement, consider the following example. Ralston-Purina makes chicken feed. Chicken feed can be made with a variety of inputs (e.g., wheat, corn, bone meal, soy meal, etc.). Ralston-Purina wants to provide chicken feed that satisfies certain requirements (e.g., so much protein, calcium, and calories per day per chicken) at lowest cost. The right combination of inputs means millions of dollars more in profits to the company. In this course, we show how Ralston-Purina solves this complicated optimization problem.

 

Students need only modest computer skills to take this course. LINGO, the computer program used in this course, is very easy to use. Mathematical knowledge beyond algebra is not required. However this course makes extreme use of mathematical thinking. If you liked doing word problems in mathematics, you will like this course. The homework problem sets are an exercise in mental gymnastics. You need to understand the logic; memorization won’t work. If you have a hard time with word problems, you will have a hard time with this course.

 

There is no book for this course. The lecture notes for this course are available at the Campus Book store. Homework assignments (the questions are at the back of the reader) count for 10% of the grade. I do not allow homework assignments turned in late. There are no makeup exams. Nor are exams allowed to be taken early (a legitimate excuse will allow a midterm not to count, but you will have to do all the review questions, not just the assigned questions from the relevant chapters for that test). Tell your parents not to book that flight for you to Costa Rica until you check your exam schedule. The syllabus is optimistic. Not all topics will be covered and the time schedule is only approximate. There will be 5 homework assignments, 4 midterms and a non-comprehensive final.  Bring bluebooks to all exams.

 

NOTES ARE AVAILABLE IN THE BOOK STORE.

 

Because the Bookstore almost always prints too few copies at the beginning of the quarter, I am making the first lectures  and homework assignments  available in PDF.

 

HOW TO STUDY FOR THIS COURSE

 

Mathematics is not a spectator sport. One can follow the logic in the notes without being able to do the material on one’s own when it comes to test time. A good way to study is to first try to redo the problems already covered in the notes. That is why after lecture 8, the answers are on the following page rather than on the same page as the questions. Try to write out the answer first on your own when studying. Then cover all of the review questions.

 

ARTICLES ON MANAGEMENT SCIENCE

 

You can read non-technical articles on management science in Interfaces. To read it on line, go to the following address http://ucelinks.cdlib.org:8888/sfx_ucsc/a-z/default and type in: Interfaces

 

DETAILS

 

            Lingo: The free student version of Lingo can be downloaded off the web. Type in the following: http://www.lindo.com/  Then hit downloads on the top bar. Next hit Download Lingo. Lingo can only be used on windows or Linux. So if you have a Mac, you will have to go to the PC side (if you have a PC emulator). You will want to download the 64-bit size version if you have a newer computer. The trial version is free. The trial version has certain limits, but I will not ask you to go beyond them.

 

Lingo is also available on the PC machines in the labs.

1) Open the "Class Folders" folder on the desktop

2) Open "Economics" folder

3) Open "Econ 115" folder

4) Double-click on "Lingo 13"

 

Class meets: MWF 9:30-10:40AM SocSci 2 Classroom 71

 

Contact: You can contact me by email: wittman@ucsc.edu or by phone: 459-4445

                My office hours are MWF 11:00-12:00 in 407 Engineering 2 and by appointment.

 

Webpage:        http://www.ic.ucsc.edu/%7Ewittman/ECON115/econ115.intro.html

 

                        Check Webpage daily for last minute changes

 


Sections


Wednesday 03:30PM-04:40PM Earth and Marine Sciences B214       Jacopo Magnani

Wednesday 5:00PM-6:10PM Soscial Sciences 1 room 145                    Jacopo Magnani


OTHER SECTIONS TO BE DETERMINED LATER

 

GRADING
Any disputes about a grade on a homework or exam must be brought to the Section Leader’s attention by the next class period after the homework or exam is returned to the student. I have the option of reviewing the whole exam and determining whether the grade should be lowered.

 

Cheating results in an automatic F and a visit to the provost.

 

Grade: Midterms 16% each, final 26%, homework total 10%.

Passing > 60%: B-  > 70%; A-  > 85%                                          


BRING BLUEBOOKS

 
SYLLABUS

 

Class #1: MONDAY, MARCH 31

Lecture 1 … Introduction. Linear Programming: The diet problem

Class #2: WEDNESDAY, APRIL 2

Lecture 2A ... LINGO

Lecture 2B … Production (pool tables)

Lecture 2C … Distribution (Lego sets)

Class #3: FRIDAY, APRIL 4

Lecture 3A … Paint Production

Lecture 3B … Cancer Treatment

HOMEWORK ASSIGNMENT 1 DUE: REVIEW QUESTIONS #1 at back of book: problems 1 and 3.  Always read the beginning of the review questions for instructions on how to answer problems. Except for doing Cramer’s rule and drawing graphs, your homework should not be handwritten

Class #4: MONDAY, APRIL 7

Lecture 4A … Production: multiple steps

Lecture 4B … Production: different methods

Class #5: WEDNESDAY APRIL 9 

Lecture 5A ... Mathematical Background *    * means that probably will not cover this year

Lecture 5B …  The General Linear Model  *

Lecture 5C … Pitfalls and Some Remedies

Class #6: FRIDAY, APRIL 11

EXAM #1: Covers lectures 1 – 5C (if lecture covered) and review questions #1 (all problems).

Note well: Because coverage may differ from expectations, please check before each exam regarding the exact chapters and review questions that will be covered on the exam.

Class #7: MONDAY, APRIL 14

Lecture 6 … Duality and Sensitivity Analysis: Auto-Truck Assembly

Class #8: WEDNESDAY APRIL 16

Lecture 7 ...  Duality and the Diet problem

Class #9: FRIDAY, APRIL 18

Lecture 8A ...  Simple Blending.

Lecture 8B … Mixing and Blending

Lecture 8C … Large Blending Problem

HOMEWORK ASSIGNMENT 2 DUE: REVIEW QUESTIONS #3: problem 4 and #4 problem 2

Class  #10: MONDAY, APRIL 21

Lecture 9A ... Pattern Cutting: paper

Lecture 9B ... Pattern Cutting: suits

Lecture 9C ... Pattern Cutting: variations

 

Class #11: WEDNESDAY, APRIL 23

Lecture 10A ... Transportation Problem

Lecture 10B … Transhipment  

Class #12: FRIDAY, APRIL 25

            EXAM #2: COVERS chapters 6-10B and problems from REVIEW QUESTIONS #2, #3 and #4          

Class #13: MONDAY, APRIL 28

Lecture 11 ... Scheduling Problem

Lecture 12 … Desegregation Plan

Class #14 WEDNESDAY, APRIL 30

Lecture 13 … Pipeline Networks

Class #15: FRIDAY, MAY 2

 Lecture 14 ... Comparative Advantage

Lecture 15 ... Rybzinsky and Stolper-Samuelson

HOMEWORK ASSIGNMENT 3 DUE. Review questions #5, problem 1 and review questions #6  problem 3

Class #16: MONDAY, MAY 5

Lecture 16   … Game Theory

Class #17:  WEDNESDAY, MAY 7

Lecture 17A ... Lingo and Non-Linear Programming

Lecture 17B … Price and Production

Class #18:  FRIDAY, MAY 9

EXAM #3 covering lectures 11 -16 and problems from review questions #5 and #6.  You need to know Lingo and duality, but you will not have to solve using graphs

Class #19: MONDAY, MAY 12

Lecture 18A … Braess’ Paradox

Lecture 18B … Pigou-Downs Paradox

Lecture 19 …  Traffic Flow

Class #20: WEDNESDAY, MAY 14

Lecture 20    Supply, Demand and Profit Maximization

Lecture 21A … Peak Load Pricing

Lecture 21B … Peak Load Pricing 

Class #21: FRIDAY, MAY 16

Lecture 22A … Redundancy

Lecture 22B … Airline Overbooking

Lecture 23 … Least Squares

            Lecture 24 … Finance

HOMEWORK ASSIGNMENT 4 DUE  Review questions #7: problems 3, 8, and 9.

Class #22: MONDAY, MAY 19

Lecture 25A … Integer Programming; Branch and Bound Technique.

Lecture 25B … Job Shop Scheduling

Lecture 25C… Fixed Charge Problem

Class #23: WEDNESDAY, MAY 21

Lecture 26A …Warehouse Choice

Lecture 26B … Exclusivity and Contingency

Lecture 27A … Loan Packaging

Class #24: FRIDAY, MAY 23

EXAM #4: Covering chapters 17-24 (if covered in class) and problems from review questions #7

No school: MEMORIAL DAY, MONDAY, MAY 26

Class #25: WEDNESDAY, MAY 28

Lecture 27B  … Minimum Batch Size

Lecture 28A …  Staff Scheduling

Lecture 28B … Bank Assignment Problem

Class #27: FRIDAY,MAY 30

Lecture 29A … Airline Crew Assignment

Lecture 29B … Airline Hubs

Lecture 30 … Plane Assignments

HOMEWORK ASSIGNMENT 5 DUE: Review questions #8:  problems 2,6 and 9.

Class #28: MONDAY, JUNE 2

Lecture 31 …  Matching Partners

Lecture 32 …  Either or Constraints

Class #29: WEDNESDAY, JUNE 4

Lecture 33 …  Map Color Problem

Lecture 34 …  Ranking Teams*

Class #30: FRIDAY, JUNE 6

Lecture 36 … Traveling Salesman

Lecture 37 … Game Show and other problems

 

Final exam Covering lectures 25-37: Wednesday June11, 7:30-10PM. Must be there on time.

 

NOTES ARE AVAILABLE IN THE BOOK STORE.

 

 

 

 

 

 

 

 

 

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