This document provides information on the Management Science course for the MBA Sem II program from 2011-2013. It outlines the course objectives, vision, pedagogy, outcomes, prerequisites, assessment scheme, textbooks, and 6 modules that make up the course content. The modules cover topics such as introduction to management science, project management using CPM/PERT, decision theory and game theory, linear programming, transportation problems, and assignment and sequencing problems.

1. MBA SEM II (2011-13)
MANAGEMENT SCIENCE
FACULTY: Dr. VAIBHAV LOWALEKAR
COURSE OBJECTIVE:
Introduce students to some of the optimization techniques, methodologies and models used in
Management Science (Popularly Known as Operations Research) is a field of Applied Mathematics
that uses mathematical methods to make rational decisions in solving a variety of optimization
problems. Most OR techniques are used to solve large, complex problems in industry, business, science
and technology, management, decision support and other areas and disciplines. The course is designed
to provide students with experience in modeling, solving and analyzing problems using Operations
Research.
COURSE VISION:
The students should be able to understand the importance of quantitative techniques in decision making
and use them effectively in different managerial situations.
COURSE PEDAGOGY:
Since Operations Research makes extensive use of statistical and mathematical methods, the pedagogy
will mainly consists of Classroom Discussion, Examples on problem solving and group assignments.
To facilitate the understanding of the subject video sharing (if needed), case discussion, small games
and presentations will also be included.
COURSE OUTCOME
By the end of the course the student will acquire the following skills
• Determine an appropriate modeling framework to real-world problems;
• Develop O.R. models that consider the key elements of the problem;
• Solve the models for optimal solutions;
• Interpret the models' solutions and infer solutions to the real-world problems.
PREREQUISITES:
Basic concepts of Statistics and Mathematics.

2. SCHEME OF MARKS (Internal Assessment)
ATTENDENCE 25%
ASSIGNMENTS (2) 15%
PRESENTATION (1) 20%
CLASS TEST (2) 15%
MID TERM EXAM 25%
TEXT BOOKS:
T1 - Operations Research, S. D. Sharma, Kedarnath Ramnath & Sons. 14/e
T2 - Quantitative Techniques in Management, Vohra, TMH, Latest Edition
T3 - Operations Research, Gupta and Hira, S.Chand Publication
REFERENCE BOOKS:
R1 - Operations Research Theory & Applications, J.K. Sharma, 3/e, Macmillan
R2 - An Introduction to Management Science, Anderson, Sweeney, Williams, 11/e Cengage
Learning
R3 - Operations Research With C Programs, Kalavathy, 3/e, Vikas Publication
R4 - Operations Research, A B Rao, 4/e, Jaico Publishing House
Web Resources for Management Science
• http://www.thinkor.org/2008/02/learn-about-operations-research-in.html
=-0987654321234567890-
• http://www.tutor.ms.unimelb.edu.au/
• http://www.me.utexas.edu/~jensen/ORMM/frontpage/jensen.lib/index.html
(This site provides free excel add-ins to solve different OR problems)
• http://en.wikipedia.org/wiki/Operations_research
• http://www.egyankosh.ac.in/simple-search?query=Operations+Research
(Free Registration Required)

3. Module 1
Title Introduction to Management Science (OR)
Contents Definitions, Characteristics & Scope of OR, Modeling, Methodology of OR,
Advantages, Limitations & Scope of OR in Business
Text T1 - Ch1, T2 - Ch1, T3 - Ch1,
References R1 – Ch1, R2 – Ch1, R3 – Ch1, R4 – Ch1
Presentation 3 groups of 3 students each will make a presentation on suggested topics from the
module.
Videos • Operations Research Analysts
• Modern Times
• i2 - Supply Chain Management For A Better World
• OR in Sports - Formula I
Readings 1. Operations Research-Contemporary Role in Managerial Decision Making
(Agarwal & al., IJRRAS 3 (2) May 2010)
2. Application of Operations Research to Managerial Decision Making
(Burton V. Dean, Administrative Science Quarterly Vol. 3, No. 3, Special
Issue on Decision Making)
3. Application of O. R. to Marketing & Related Management Problems
(John F. Magee, Journal of Marketing, Vol. 18, No. 4)
No. of Sessions Four

4. Module II
Title Project Management through CPM / PERT
Contents Defining a Project and the basic objectives of a project. Network Analysis in
Project – Critical Path Method (CPM) and Project Evaluation Review
Technique (PERT).
Text T1 – Ch25, T2 – Ch12, T3 – Ch14
References R1 – Ch13, R2 – Ch10, R3 – Ch15, R4 – Ch8
Videos Planning Christmas Party Using PERT/CPM
Assignment Group of 3 students will submit an assignment based on their Summer Internship
Programme.
Readings 1. PERT/CPM: A Tool for Project Management
(Wolf and Hauck, Industrial management, Vol. 27, No. 1, IIE, 1985)
2. Critical Path Analysis for new Product Planning
(Yung Wong, Journal of Marketing, Vol. 28, No. 4)
3. Case Study : Using CPM or PERT in time planning
(http://hafeezrm.hubpages.com/hub/Case-Study-Using-CPM-or-PERT-in-
time-planning--control)
4. Program Evaluation and Review Technique (PERT) and Critical Path
Method (CPM) Applications (faculty.uml.edu/adoerr/92.321/pdf/week14.pdf)
Presentation 3 groups of 3 students each will make a presentation on suggested topics from the
module.
No. of Sessions Eight

5. Module III
Title Decision Theory & Game Theory
Contents Decision making under uncertainty and risk. Game theory, two persons zero
sum games; saddle Point, Dominance Rule, and Mixed Strategy Games.
Graphical Solution. Using Decision Trees to make decisions.
Text T1 – Ch18, Ch19, T2 – Ch13, Ch15, T3 – Ch9
References R1 – Ch11, Ch12; R2 – Ch14, R3 – Ch21, R4 – Ch10
Videos • Game Theory on a British Game Show!
• How to Buy a Car, Using Game Theory
Test A test based on Module I, II and III will be held at the end of module III
Readings 1. Use of Decision Theory in Regional Planning
(http://www.ncbi.nlm.nih.gov/pmc/articles/PMC1071782/)
2. The Prisoner's Dilemma
(businessmanagementcourses.org/Lesson29ThePrisonersDilemma.pdf)
Presentation 3 Groups of 3 Students each will make a presentation on topics provided by the
instructor.
No. of Sessions Eight

6. Module IV
Title Linear Programming Problem (LPP)
Contents General LPP, Standard and Canonical Forms of LPP, Basic Concepts, Model
Formulation, Graphical solution of solving LPP, Duality in LPP and Sensitivity
Analysis. Using MS Excel.
Text T1 – Ch3, Ch7, Ch9, T2 – Ch2, Ch4, T3 – Ch2, Ch6
References R1 – Ch2, Ch3, Ch5, Ch6, R2 – Ch2, Ch3, Ch4
Readings 1. Applications of LP – Case Studies
(http://linear.wikidot.com/cases)
2. Applications of Linear Programming
(www.rpi.edu/~mitchj/handouts/lp/lp.pdf)
3. Student Dormitory Development Plan with LP Method
(http://ebookbrowse.com/susilawati-student-dormitory-development-plan-
with-linear-programming-method-pdf-d152690894)
4. A Linear Programming Problem – High Step Shoes
(www.hsor.org/downloads/High_Step_Shoes_student.pdf)
Assignment Group of 3 students will submit an assignment based on their Summer
Internship Programme.
Presentation 3 Groups of 3 Students each will make a presentation on topics provided by the
instructor.
No. of Sessions Eight

7. Module V
Title Transportation Problem
Contents Basic concept, North – West corner method, Row minima method, Column
minima method, Least cost method, Voggel’s Approximation method. MODI
method and Special Cases. Using MS Excel to solve the TP.
Text T1 – Ch12, T2 – Ch5, T3 – Ch3
References R1 – Ch9, R2 – Ch7, Ch9, R3- Ch8, Ch9, R4 – Ch3
Readings 1. Transportation Problem: A Special Case for Linear Programming Problems
((Reeb and Leavengood, June 2002, Oregon State University)
2. Experimental Analysis of some variants of VAM (Asia Pacific Journal of
Operational Research Vol. 21, No. 4 (2004) 447-462)
Presentation 3 Groups of 3 Students each will make a presentation on topics provided by the
instructor.
No. of Sessions Six
Module VI
Title Assignment and Sequencing Problem
Contents Assignment Problem – Basic concepts, Hungarian method of solving assignment
problem, LP Formulation. Using MS Excel to solve the Assignment Problem.
Sequencing Problem, Processing n Jobs through k machine(s). Johnson’s
Algorithm.
Text T1 - Ch12, Ch24, T2 - Ch5, Ch8, T3 – Ch4, Ch5
References R1 - Ch10, Ch22, R2 – Ch7, R3 – Ch9, Ch14, R4 – Ch4
Videos • Operations Management
• Visa Power
Readings 1. Scheduling Programming Activities and Johnson's Algorithm
(www.nesug.org/Proceedings/nesug10/ma/ma07.pdf)
Test A Test based on Modules IV, V and VI will be held at the end of Module VI.
No. of Sessions Eight