Operations Research (Applications using R)

Introduction to Operations Research. Basic Linear Programming (LP) concepts. Specifying the Linear Programming Problem (LPP). Graphical Solution, calculation and interpretation of the Shadow Prices. The general concept of LP. Stating and describing the deterministic model. Applications of LP in famous problems in Operations Research using the software R. The Simplex Method and the normal form of LPP. Solving LPP using the Simplex Method and Economic Interpretation. The Big M Method and the Two-Phases Method. Duality, properties of dual problems and the dual Simplex method. Sensitivity Analysis of the parameters of the LPP. Special Cases of LPP. The Transportation Problem and the Solution concepts. Introduction to Integer Programming.

Objectives

Familiarization with the field of the Operations Research. Demonstration of the study stages and constructs of a Linear Programming Problem. Presentation of the available methodologies in Operations Research. Familiarization with the quantitative approach of solving Linear Programming Problems using the freeware R.

Prerequisites

Mathematics for Economists I and II. Microeconomic Theory I.

Syllabus

Introduction to Operations Research. Introduction to Linear Programming. Graphical Solution and Shadow Prices. The Simplex Method (Theoretical Approach). The Simplex Method (Simplex Tables). The Big M Method and the Two Phases Method. Duality. Sensitivity Analysis of the parameters of the LPP. The Transportation Problem. Introduction to Integer Programming.