IE 440

Probabilistic Models in Operations Research

Spring 2011

Meetings: Tuesday 6~9pm, GITC5602

Instructor: Jian Yang

· Office: MEC305; Office Hours: Flexible

· Telephone: 973-596-3658

· Email: yang@njit.edu

Web Page: http://web.njit.edu/~yang/teaching/ie440/ie440.html

Course Summary: Probability, Markov chains, queueing theory, inventory control, forecasting

Text: Operations Research: Applications and Algorithms 4th Edition by W.L. Winston, Thomson Learning, 2004

References: Introduction to Operations Research 7^th Edition by Frederick S. Hillier and Gerald J. Lieberman, McGraw Hill, 2001

Description:

Probabilistic techniques of operations research. Topics include the applications of Markov chains, queueing and inventory control models to analyze and evaluate systems performance

Prerequisites: IE 331, Math 337 or their equivalent

Objectives:

1. Stochastic models of operations research

2. Impact of variability on decision making

3. Economics assessment of queueing and inventory systems

Program Objectives Addressed: 1, 2, 4

Course Objectives Matrix – IE 440 Stochastic Models in Operations Research

Strategies and Actions

Student Learning Outcomes

Outcomes (a-k)

Prog. Object.

Assessment Methods/Metrics

Course Objective 1: Stochastic models of operations Research

Review probability concepts Introduce the importance of randomness and its effect of system design	Follow up student’s homework and comment on results	a	1	Homework
Teach student modeling of systems using Markov chain queueing and inventory models	Homework and test shall indicate students learning of subject matter	k	1, 2	Test and homework Class discussion
Assign homework problems to analyze real world system Tests	Grading homework shows which students have captured		1, 2, 4	Test and homework

Course Objective 2: Impact of variability on decision making

Teach how changing parameters and various affect outcomes

Follow up student’s homework and comment on results

a, k

2, 4

Homework

Course Objective 3: Economics assessment of queueing and inventory systems

Assign homework assignments on different inventory & queueing systems

Follow up student’s homework and comment on results

b

2, 4

Homework

Determination of Grades:

· Two homework assignments at 20 points each (40 points in total)

· One mid-term exam at 30 points

· One final exam at 30 points

The proposed letter grade assignment is as follows:

F 0--29.999

D 30--44.999

C 45--59.999

C⁺ 60--64.999

B 65--79.999

B⁺ 80--84.999

A 85--100

Late assignments will be penalized 20 points (on the 100 point scale) if turned in up to ONE week late. Assignments in excess of ONE week late will not be accepted. Discussion on homework assignments is welcomed. But, each individual must write up his or her homework independently.

Current grades can be found here.

Tentative Course Progress:

Date	Coverage
January 18, 2011	1: Basic Rules of Probability
January 25, 2011	2: Random Variable and Related Topics
February 1, 2011	3: Introduction to Markov Chain
February 8, 2011	4: Long-run Properties of Markov Chains
February 15, 2011	5: Introduction to Queueing Models
February 22, 2011	6: Birth-and-Death Processes
March 1, 2011	7: Problems and Review; HW1 due
March 8, 2011	8: MID-TERM EXAM
March 15, 2011	Spring Recess—No Class
March 22, 2011	9: Applications of Queueing Theory
March 29, 2011	10: Probabilistic Dynamic Programming
April 5, 2011	11: Stochastic Inventory Models
April 12, 2011	12: Introduction to Forecasting
April 19, 2011	13: Basics of Statistics
April 26, 2011	14: Problems and Review; HW2 due
May 3, 2011	Friday schedule—No Class
May 10, 2011	15: FINAL EXAM