MBA O701 – Fall 2024

MBA O701 – Modeling & Prescriptive Analytics

Fall 2024 Course Outline

Operations Management Area

DeGroote School of Business - McMaster University

COURSE OBJECTIVE

This course will introduce students to the fundamental concepts of prescriptive analytics using
Microsoft Excel and Analytic Solver Platform and discuss the practical approaches to solving
business cases using optimization techniques and simulation modeling. The course will take a
practical (less of math and more of logic and intuition) approach and cover topics like Linear and
Non-linear Optimization, Integer Optimization, Optimization of non-smooth models and Simulation
techniques to build intuition, structure the problem, solve, analyze and evaluate prescriptive models
from a business perspective. The students will learn when to use a specific model and understand
the implementation using a hands-on problem-solving approach. The students of this course will
benefit from having a prior knowledge of basic excel formulae.

INSTRUCTOR AND COURSE COMMUNICATIONS

Dr. Srikanth Balasubramanian

Instructor

[email protected]

Office: TBA
Office Hours: By Appointment

https://www.linkedin.com/in/srikabala/

Course website: BUSADMIN O701:Modeling and Prescriptive Analytics

Teams site: O701- Fall 2024 Microsoft Teams

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Credit Value: 3 Leadership: No IT skills: Yes Global view: Yes

Avenue: Yes Ethics: Yes Numeracy: Yes Written skills: Yes
Participation: No Innovation: Yes Group work: No Oral skills: Yes
Evidence-based: Yes Experiential: Yes Final Exam: Yes Guest speaker(s): No

COURSE DESCRIPTION

This course will discuss the most popular prescriptive analytics techniques, and then use them to
logically model real-world applications from a variety of business areas such as operations,
marketing, finance, etc. The logical model will be converted into a computer model, which will then
be solved and analyzed via Analytic Solver Platform (within a spreadsheet environment).
The first part of the course will focus on developing a strong understanding of the core ideas of
prescriptive modeling by implementing basic linear optimization models like allocation, blending and
covering models.
The second part of the course will delve into a special type of linear optimization models called
Network Flow models. The students will learn how to solve cases using transportation, assignment
and transhipment models.
The third part of the course will focus on examples using integer optimization, non-linear
optimization and optimization of non-smooth models.
The final part of the course will focus on the basics of simulation modeling covering aspects of
Monte-Carlo simulation, stochastic optimization, chance constraints and recourse decisions.

LEARNING OUTCOMES

Upon completion of this course, students will be able to complete the following key tasks:

✓ Use prescriptive analytics techniques to solve managerial problems.

✓ Logically model, solve, and analyze a problem in Analytics Solver Platform (& Excel).

✓ Simulate (components of) a decision problem.

✓ Apply modeling and analytical techniques to real-world applications.

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COURSE MATERIALS AND READINGS

• Custom textbook developed with Wiley entitled, “O701: Modeling and Prescriptive Analytics”.
ISBN: TBD.

• Analytic Solver Platform (www.solver.com). The requisite license will be purchased by the
School, and the relevant installation details will be shared in class.

• Avenue registration for lecture notes, course content, readings, datasets and assessments.

The students can go through Chapters 1 through 5 in the custom textbook by themselves as needed.
No component of these 5 chapters will be used in any assessment for this course.

EVALUATION

Learning in this course results primarily from in-class discussion and participation of business cases as
well as out-of-class analysis. The balance of the learning results from the lectures on strategic
concepts, from related readings, and from researching your presentations, cases, assignments,
simulation decisions. All work will be evaluated on an individual basis except in certain cases where
group work is expected. In these cases, group members will share the same grade adjusted by peer
evaluation. In this course, there is no evaluation component at the group level. Your final grade will be
calculated as follows:

Quizzes (50%) - Top five out of six assessments

There will be six quizzes, each worth 10% and would be conducted based on a multiple-choice
questions format. The top five scores from these quizzes will be used for grading. These quizzes
would be conducted in-class and will be for a maximum duration of 30 minutes. No make-up
quizzes will be offered if a student misses the quiz for any reason.

The quizzes are planned as per the following schedule (subject to change):

• Quiz #1: Weight: 10%. Date: Oct 03, 2024

• Quiz #2: Weight: 10%. Date: Oct 10, 2024
• Quiz #3: Weight: 10%. Date: Nov 07, 2024
• Quiz #4: Weight: 10%. Date: Nov 14, 2024
• Quiz #5: Weight: 10%. Date: Nov 21, 2024
• Quiz #6: Weight: 10%. Date: Dec 05, 2024

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Mid-Term (20%)

There will be one mid-term assessment, and it would be conducted in-class on October 24,
2024. It would likely take a candidate about 2-hour and 30 minutes to complete the assessment
using Excel and Analytic Solver Platform. The answers must be marked using a multiple-choice
question format. Working files must be submitted for auditing purposes.
Please note that each student must write the midterm test. If you are unable to write the exam
on the scheduled date, and have advanced knowledge and permission, the instructor will
provide you with an opportunity to write an alternate version of the test at an alternate time. Note
that this is not automatic and that a written request for alternate exam must be made, along with
the supporting documents, well ahead of the scheduled date.

Final Exam (30%)

Final Exam will be held during the exam week, and more details will be provided in the class. It
will likely be a 3-hour exam. You will complete this exam using Excel and Analytic Solver
Platform. Final answers must be marked using a multiple-choice question format. Working files
must be submitted for auditing purposes.
Please note that each student has to complete the final exam. If you are unable to write the
exam on the scheduled date, and have advanced knowledge and permission, the instructor will
provide you with an opportunity to write an alternate version of the test at an alternate time. Note
that this is not automatic and that a written request for alternate exam has to be made, along
with the supporting documents, well ahead of the scheduled date.

Components and Weights

Quizzes (individual) 50%

Mid-Term (individual) 20%

Final Exam (individual) 30%

Total 100%

NOTES:
➢ Any requests for a re-read of the assignments or examinations should be made within two weeks
of the date of distribution of the marks.
➢ The use of a McMaster standard calculator is allowed during examinations in this course. See
McMaster calculator policy at the following URL:

http://www.mcmaster.ca/policy/Students-AcademicStudies/GradExamsPolicy.pdf

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Grade Conversion

At the end of the course your overall percentage grade will be converted to your letter grade in
accordance with the following conversion scheme:

LETTER GRADE PERCENT POINTS

A+ 90-100 12
A 85-89 11
A- 80-84 10
B+ 75-79 9
B 70-74 8
B- 60-69 7
F 00-59 0

Communication and Feedback

Students that are uncomfortable in directly approaching an instructor regarding a course concern
may send a confidential and anonymous email to the respective Area Chair or Associate Dean:
http://mbastudent.degroote.mcmaster.ca/contact/anonymous/
Students who wish to correspond with instructors or TAs directly via email must send messages that
originate from their official McMaster University email account. This protects the confidentiality and
sensitivity of information as well as confirms the identity of the student. Emails regarding course issues
should NOT be sent to the Administrative Assistant.
Instructors are encouraged to conduct an informal course review with students by Week #4 to allow
time for modifications in curriculum delivery Instructors should provide evaluation feedback for at least
10% of the final grade to students prior to Week #8 in the term.

ACADEMIC DISHONESTY

You are expected to exhibit honesty and use ethical behaviour in all aspects of the learning process.
Academic credentials you earn are rooted in principles of honesty and academic integrity.

Academic dishonesty is to knowingly act or fail to act in a way that results or could result in unearned
academic credit or advantage. This behaviour can result in serious consequences, e.g. the grade of
zero on an assignment, loss of credit with a notation on the transcript (notation reads: “Grade of F
assigned for academic dishonesty”), and/or suspension or expulsion from the university.

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It is your responsibility to understand what constitutes academic dishonesty. For information on the
various types of academic dishonesty please refer to the Academic Integrity Policy, located at:

www.mcmaster.ca/academicintegrity

The following illustrates only three forms of academic dishonesty:

1. Plagiarism, e.g. the submission of work that is not one’s own or for which other credit has been
obtained.
2. Improper collaboration in group work.
3. Copying or using unauthorized aids in tests and examinations

MISSED ACADEMIC WORK

Missed Mid-Term Examinations / Presentations / Tests / Class Participation

Where students miss a regularly scheduled mid-term or class participation for legitimate reasons as
determined by the Student Experience – Academic (MBA) office, the weight for that test/participation
will be distributed across other evaluative components of the course at the discretion of the
instructor. Documentation explaining such an absence must be provided to the Student Experience –
Academic (MBA) office within five (5) working days upon returning to school.
To document absences for health related reasons, please provide to Student Experience – Academic
(MBA) office the Petition for Relief for MBA Missed Term Work and the McMaster University Student
Health Certificate which can be found on the DeGroote website at
http://mbastudent.degroote.mcmaster.ca/forms-and-applications/ Please do not use the online
McMaster Student Absence Form as this is for Undergraduate students only. University policy states
that a student may submit a maximum of three (3) medical certificates per year after which the student
must meet with the Director of the program.
To document absences for reasons other than health related, please provide Student Experience –
Academic (MBA) office the Petition for Relief for MBA Missed Term Work and documentation
supporting the reason for the absence.
Students unable to write a mid-term at the posted exam time due to the following reasons: religious;
work-related (for part-time students only); representing university at an academic or varsity athletic
event; conflicts between two overlapping scheduled mid-term exams; or other extenuating
circumstances, have the option of applying for special exam arrangements. Such requests must be
made to the Student Experience – Academic (MBA) office at least ten (10) working days before the
scheduled exam along with acceptable documentation. Instructors cannot themselves allow students
to unofficially write make-up exams/tests. Adjudication of the request must be handled by Student
Experience – Academic (MBA).

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If a mid-term exam is missed without a valid reason, students will receive a grade of zero (0) for that
component.

Missed Final Examinations

A student who misses a final examination without good reason will receive a mark of 0 on the
examination. All applications for deferred and special examination arrangements must be made to the
Student Experience – Academic (MBA) office. Failure to meet the stated deadlines may result in the
denial of these arrangements. Deferred examination privileges, if granted, must be satisfied during the
examination period at the end of the following term. There will be one common sitting for all deferred
exams.
Failure to write an approved deferred examination at the pre-scheduled time will result in a failure for
that examination, except in the case of exceptional circumstances where documentation has been
provided and approved. Upon approval, no credit will be given for the course, and the notation N.C.
(no credit) will be placed on the student’s transcript. Students receiving no credit for a required course
must repeat the course. Optional or elective courses for which no credit is given may be repeated or
replaced with another course of equal credit value.
Requests for a second deferral or rescheduling of a deferred examination will not be considered.
Any student who is unable to write a final examination because of illness is required to submit the
Application for Deferred MBA Final Examination and a statement from a doctor certifying illness on the
date of the examination. The Application for Deferred MBA Final Examination and the McMaster

University Student Health Certificate can be found on the DeGroote website at

http://mbastudent.degroote.mcmaster.ca/forms-and-applications/ Please do not use the online
McMaster Student Absence Form as this is for Undergraduate students only. Students who write
examinations while ill will not be given special consideration after the fact.
In such cases, the request for a deferred examination privilege must be made in writing to the Student
Experience – Academic (MBA) office within five business days of the missed examination.
Special examination arrangements may be made for students unable to write at the posted exam time
due to compelling reasons (for example religious, or for part-time students only, work-related reasons):
• Students who have religious obligations which make it impossible to write examinations at the
times posted are required to produce a letter from their religious leader stating that they are
unable to be present owing to a religious obligation.
• Part-time students who have business commitments which make it impossible to write
examinations at the times posted are required to produce a letter on company letterhead from
the student’s immediate supervisor stating that they are unable to be present owing to a specific
job commitment.

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In such cases, applications must be made in writing to the Student Experience – Academic (MBA) office
at least ten business days before the scheduled examination date and acceptable documentation must
be supplied.
If a student is representing the University at an academic or athletic event and is available at an
overlapping scheduled time of the test/examination, the student may write the test/examination at an
approved location with an approved invigilator, as determined by the Student Experience – Academic
(MBA) office.
In such cases, the request for a deferred examination privilege must be made in writing to the Student
Experience – Academic (MBA) office within ten business days of the end of the examination period.
Note: A fee of $50 will be charged for a deferred exam written on campus and a fee of $100 for deferred
exams written elsewhere. In cases where the student’s standing is in doubt, the Graduate Admissions
and Study Committee may require that the student with one or more deferred examination privileges
refrain from re-registering until the examination(s) have been cleared.

STUDENT ACCESSIBILITY SERVICES

Student Accessibility Services (SAS) offers various support services for students with disabilities.
Students are required to inform SAS of accommodation needs for course work at the outset of term.
Students must forward a copy of such SAS accommodation to the instructor normally, within the first
three (3) weeks of classes by setting up an appointment with the instructor. If a student with a disability

chooses NOT to take advantage of an SAS accommodation and chooses to sit for a regular exam, a
petition for relief may not be filed after the examination is complete. The SAS website is:
http://sas.mcmaster.ca

RELIGIOUS, INDIGENOUS OR SPIRITUAL OBSERVATIONS (RISO)

Students requiring academic accommodation based on religious, indigenous or spiritual

observances should follow the procedures set out in the RISO policy. Students should submit
their request to their Faculty Office normally within 10 working days of the beginning of term in
which they anticipate a need for accommodation or to the Registrar's Office prior to their
examinations. Students should also contact their instructors as soon as possible to make
alternative arrangements for classes, assignments, and tests.

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COPYRIGHT AND RECORDING

Students are advised that lectures, demonstrations, performances, and any other course material
provided by an instructor include copyright protected works. The Copyright Act and copyright law
protect every original literary, dramatic, musical and artistic work, including lectures by University
instructors.

The recording of lectures, tutorials, or other methods of instruction may occur during a course.
Recording may be done by either the instructor for the purpose of authorized distribution, or by a
student for the purpose of personal study. Students should be aware that their voice and/or image
may be recorded by others during the class. Please speak with the instructor if this is a concern for
you.

POTENTIAL MODIFICATION TO THE COURSE

The instructor and university reserve the right to modify elements of the course during the term. The
university may change the dates and deadlines for any or all courses in extreme circumstances. If either
type of modification becomes necessary, reasonable notice and communication with the students will
be given with explanation and the opportunity to comment on changes. It is the responsibility of the
student to check their McMaster email and course websites weekly during the term and to note any
changes.

ACKNOWLEDGEMENT OF COURSE POLICIES

Your registration and continuous participation (e.g. on A2L, in the classroom, etc.) to the various
learning activities of MBA O711 will be considered to be an implicit acknowledgement of the course
policies outlined above, or of any other that may be announced during lecture and/or on A2L. It is your
responsibility to read this course outline, to familiarize yourself with the course policies and to
act accordingly.

Lack of awareness of the course policies cannot be invoked at any point during this course for failure
to meet them. It is your responsibility to ask for clarification on any policies that you do not understand.

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COURSE SCHEDULE
C01 - THU – 07:00 PM – 09:50 PM (RJC 236)

SESSION DATE TOPICS

Part 0: Course Introduction and Logistics
1 Thu. Sep. 12 ✓ Resources, Assessments and Expectations
✓ Just Enough Excel Primer

Part 1: Linear Optimization 1

2 Thu. Sep. 19 ✓ Allocation Models
✓ Solver Reports and Sensitivity Analysis

Part 1: Linear Optimization 2

3 Thu. Sep. 26 ✓ Covering Models
✓ Blending Models

Part 2: Network Flow Models 1

4 Thu. Oct. 03 ✓ Introduction to Network Flow Models
✓ Transportation Model
Quiz 1: Linear Optimization

Part 2: Network Flow Models 2

5 Thu. Oct. 10 ✓ Assignment Model
✓ Transshipment Model
Quiz 2: Network Flow Models 1

Mid-Term Recess: Oct 14 to Oct 20

6 Thu. Oct. 24 Mid-term exam:

Linear Optimization and Network Flow Models

Part 3: Integer Optimization

7 Thu. Oct. 31 ✓ Binary Choice Model
✓ Facility Location Model

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8 Thu. Nov. 07 Part 3: Non-linear Optimization

✓ Portfolio Optimization
✓ Sensitivity Analysis of Non-linear models
Quiz 3: Integer Optimization

9 Thu. Nov. 14 Part 3 – Optimization of non-smooth models

✓ Covering Models
✓ Blending Models
Quiz 4: Non-linear Optimization

Part 4 – Simulation Modeling 1

10 Thu. Nov. 21 ✓ Basics of Simulation
✓ Reading Simulation Reports
Quiz 5: Optimization of non-smooth models

Part 4 – Simulation Modeling 2

11 Thu. Nov. 28 ✓ Chance Constraints
✓ Recourse Decisions

Course Summary / Preparation tips for Final Exam

12 Thu. Dec. 05
Quiz 6: Simulation Modeling

Final Exam (take-home) may cover any topic discussed in the course

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