Preface
Brief Contents
Contents
Ch 1: Introduction to Modeling and Decision Analysis
1.0: Introduction
1.1: The Modeling Approach to Decision Making
1.2: Characteristics and Benefits of Modeling
1.3: Mathematical Models
1.4: Categories of Mathematical Models
1.5: Business Analytics and the Problem-Solving Process
1.6: Anchoring and Framing Effects
1.7: Good Decisions vs. Good Outcomes
1.8: Summary
1.9: References
Ch 2: Introduction to Optimization and Linear Programming
2.0: Introduction
2.1: Applications of Mathematical Optimization
2.2: Characteristics of Optimization Problems
2.3: Expressing Optimization Problems Mathematically
2.4: Mathematical Programming Techniques
2.5: An Example LP Problem
2.6: Formulating LP Models
2.7: Summary of the LP Model for the Example Problem
2.8: The General Form of an LP Model
2.9: Solving LP Problems: An Intuitive Approach
2.10: Solving LP Problems: A Graphical Approach
2.11: Special Conditions in LP Models
2.12: Summary
2.13: References
Ch 3: Modeling and Solving LP Problems in a Spreadsheet
3.0: Introduction
3.1: Spreadsheet Solvers
3.2: Solving LP Problems in a Spreadsheet
3.3: The Steps in Implementing an LP Model in a Spreadsheet
3.4: A Spreadsheet Model for the Blue Ridge Hot Tubs Problem
3.5: How Solver Views the Model
3.6: Using Analytic Solver Platform
3.7: Using Excel's Built-In Solver
3.8: Goals and Guidelines for Spreadsheet Design
3.9: Make vs. Buy Decisions
3.10: An Investment Problem
3.11: A Transportation Problem
3.12: A Blending Problem
3.13: A Production and Inventory Planning Problem
3.14: A Multiperiod Cash-Flow Problem
3.15: Data Envelopment Analysis
3.16: Summary
3.17: References
Ch 4: Sensitivity Analysis and the Simplex Method
4.0: Introduction
4.1: The Purpose of Sensitivity Analysis
4.2: Approaches to Sensitivity Analysis
4.3: An Example Problem
4.4: The Answer Report
4.5: The Sensitivity Report
4.6: The Limits Report
4.7: Ad Hoc Sensitivity Analysis
4.8: Robust Optimization
4.9: The Simplex Method
4.10: Summary
4.11: References
Ch 5: Network Modeling
5.0: Introduction
5.1: The Transshipment Problem
5.2: The Shortest Path Problem
5.3: The Equipment Replacement Problem
5.4: Transportation/Assignment Problems
5.5: Generalized Network Flow Problems
5.6: Maximal Flow Problems
5.7: Special Modeling Considerations
5.8: Minimal Spanning Tree Problems
5.9: Summary
5.10: References
Ch 6: Integer Linear Programming
6.0: Introduction
6.1: Integrality Conditions
6.2: Relaxation
6.3: Solving the Relaxed Problem
6.4: Bounds
6.5: Rounding
6.6: Stopping Rules
6.7: Solving ILP Problems Using Solver
6.8: Other ILP Problems
6.9: An Employee Scheduling Problem
6.10: Binary Variables
6.11: A Capital Budgeting Problem
6.12: Binary Variables and Logical Conditions
6.13: The Fixed-Charge Problem
6.14: Minimum Order/Purchase Size
6.15: Quantity Discounts
6.16: A Contract Award Problem
6.17: The Branch-and-Bound Algorithm (Optional)
6.18: Summary
6.19: References
Ch 7: Goal Programming and Multiple Objective Optimization
7.0: Introduction
7.1: Goal Programming
7.2: A Goal Programming Example
7.3: Comments about Goal Programming
7.4: Multiple Objective Optimization
7.5: An MOLP Example
7.6: Comments on MOLP
7.7: Summary
7.8: References
Ch 8: Nonlinear Programming and Evolutionary Optimization
8.0: Introduction
8.1: The Nature of NLP Problems
8.2: Solution Strategies for NLP Problems
8.3: Local vs. Global Optimal Solutions
8.4: Economic Order Quantity Models
8.5: Location Problems
8.6: Nonlinear Network Flow Problem
8.7: Project Selection Problems
8.8: Optimizing Existing Financial Spreadsheet Models
8.9: The Portfolio Selection Problem
8.10: Sensitivity Analysis
8.11: Solver Options for Solving NLPs
8.12: Evolutionary Algorithms
8.13: Forming Fair Teams
8.14: The Traveling Salesperson Problem
8.15: Summary
8.16: References
Ch 9: Regression Analysis
9.0: Introduction
9.1: An Example
9.2: Regression Models
9.3: Simple Linear Regression Analysis
9.4: Defining "Best Fit"
9.5: Solving the Problem Using Solver
9.6: Solving the Problem Using the Regression Tool
9.7: Evaluating the Fit
9.8: The R2 Statistic
9.9: Making Predictions
9.10: Statistical Tests for Population Parameters
9.11: Introduction to Multiple Regression
9.12: A Multiple Regression Example
9.13: Selecting the Model
9.14: Making Predictions
9.15: Binary Independent Variables
9.16: Statistical Tests for the Population Parameters
9.17: Polynomial Regression
9.18: Summary
9.19: References
Ch 10: Data Mining
10.0: Introduction
10.1: Data Mining Overview
10.2: Classification
10.3: Classification Data Partitioning
10.4: Discriminant Analysis
10.5: Logistic Regression
10.6: k-Nearest Neighbor
10.7: Classification Trees
10.8: Neural Networks
10.9: Naive Bayes
10.10: Comments on Classification
10.11: Prediction
10.12: Association Rules (Affinity Analysis)
10.13: Cluster Analysis
10.14: Time Series
10.15: Summary
10.16: References
Ch 11: Time Series Forecasting
11.0: Introduction
11.1: Time Series Methods
11.2: Measuring Accuracy
11.3: Stationary Models
11.4: Moving Averages
11.5: Weighted Moving Averages
11.6: Exponential Smoothing
11.7: Seasonality
11.8: Stationary Data with Additive Seasonal Effects
11.9: Stationary Data with Multiplicative Seasonal Effects
11.10: Trend Models
11.11: Double Moving Average
11.12: Double Exponential Smoothing (Holt's Method)
11.13: Holt-Winter's Method for Additive Seasonal Effects
11.14: Holt-Winter's Method for Multiplicative Seasonal Effects
11.15: Modeling Time Series Trends Using Regression
11.16: Linear Trend Model
11.17: Quadratic Trend Model
11.18: Modeling Seasonality with Regression Models
11.19: Adjusting Trend Predictions with Seasonal Indices
11.20: Seasonal Regression Models
11.21: Combining Forecasts
11.22: Summary
11.23: References
Ch 12: Introduction to Simulation Using Analytic Solver Platform
12.0: Introduction
12.1: Random Variables and Risk
12.2: Why Analyze Risk?
12.3: Methods of Risk Analysis
12.4: A Corporate Health Insurance Example
12.5: Spreadsheet Simulation Using Analytic Solver Platform
12.6: Random Number Generators
12.7: Preparing the Model for Simulation
12.8: Running the Simulation
12.9: Data Analysis
12.10: The Uncertainty of Sampling
12.11: Interactive Simulation
12.12: The Benefits of Simulation
12.13: Additional Uses of Simulation
12.14: A Reservation Management Example
12.15: An Inventory Control Example
12.16: A Project Selection Example
12.17: A Portfolio Optimization Example
12.18: Summary
12.19: References
Ch 13: Queuing Theory
13.0: Introduction
13.1: The Purpose of Queuing Models
13.2: Queuing System Configurations
13.3: Characteristics of Queuing Systems
13.4: Kendall Notation
13.5: Queuing Models
13.6: The M/M/s Model
13.7: The M/M/s Model with Finite Queue Length
13.8: The M/M/s Model with Finite Population
13.9: The M/G/1 Model
13.10: The M/D/1 Model
13.11: Simulating Queues and the Steady-State Assumption
13.12: Summary
13.13: References
Ch 14: Decision Analysis
14.0: Introduction
14.1: Good Decisions vs. Good Outcomes
14.2: Characteristics of Decision Problems
14.3: An Example
14.4: The Payoff Matrix
14.5: Decision Rules
14.6: Nonprobabilistic Methods
14.7: Probabilistic Methods
14.8: The Expected Value of Perfect Information
14.9: Decision Trees
14.10: Creating Decision Trees with Analytic Solver Platform
14.11: Multistage Decision Problems
14.12: Sensitivity Analysis
14.13: Using Sample Information in Decision Making
14.14: Computing Conditional Probabilities
14.15: Utility Theory
14.16: Multicriteria Decision Making
14.17: The Multicriteria Scoring Model
14.18: The Analytic Hierarchy Process
14.19: Summary
14.20: References
Ch 15: Project Management
15.0: Introduction
15.1: An Example
15.2: Creating the Project Network
15.3: CPM: An Overview
15.4: The Forward Pass
15.5: The Backward Pass
15.6: Determining the Critical Path
15.7: Project Management Using Spreadsheets
15.8: Gantt Charts
15.9: Project Crashing
15.10: PERT: An Overview
15.11: Simulating Project Networks
15.12: Microsoft Project
15.13: Summary
15.14: References
Index