The document discusses exercises for a business decisions tools course. It includes: - An exercise set due on March 1st with questions about facility building. - A goal programming problem for a business school admission committee to admit at least 240 students with an average GMAT of 690 or higher and no more than 60% men. - The goal programming formulation is shown minimizing deviations from the three goals and defining decision variables and constraints. - The last slide mentions modeling nonlinear programming problems in Excel.

1. 27C0100
Tools for Business Decisions
Exercises
kari.silvennoinen@student.hse.fi

2. Exercise 5
• “Exercise Set 5”, due on Monday, March 1st.
• First quesHon
– Is each facility built at most once?
– or can they be built mulHple Hmes?
• Second case due February 25th.
kari.silvennoinen@hse.fi 2

3. Goal Programming
The admission commiQee for the Whartward
Business School will be making its decisions
regarding which applicants to admit to its MBA
program for the coming year. In addiHon to
considering each applicant on his or her own merit,
the commiQee needs to take some policy guidelines
into account.
The three basic goals set by the commiQee are as
follows:
kari.silvennoinen@hse.fi 3

4. Whartward Business School
• Goal 1: The entering class should include at
least 240 students
• Goal 2: The entering class should have an
average GMAT total score of at least 690
• Goal 3: The entering class should consist of at
most 60% of men
kari.silvennoinen@hse.fi 4

5. Whartward Business School
• Let di+ be the amount of Category Average GMAT
posiHve deviaHon and di-­‐ High men (HM) 720
High women (HW) 720
the amount of negaHve
deviaHon from the Medium men (MM) 670
targets Medium women (MW) 670
Low men (LM) 620
Low women (LW) 620
• Formulate the above
goal programming
problem using the
definiHons above.
kari.silvennoinen@hse.fi 5

6. Whartward Business School
min W = w1 d− + w2 d− + w3 d+
1 2 3
s.t.
hm + hw + mm + mw + lm + lw − d+ + d− = 240
1 1
720(hm + hw ) + 670(mm + mw ) + 620(lm + lw )
− d+ + d− = 690
hm + hw + mm + mw + lm + lw 2 2
hm + mm + lm
− d+ + d− = 0, 6
hm + hw + mm + mw + lm + lw 3 3
kari.silvennoinen@hse.fi 6

7. Nonlinear Programming
• How to model NLP-­‐problems in Excel
kari.silvennoinen@hse.fi 7