Optimization formulation- FORMULATE an optimal marketing resource allocation
1. You will undertake a business information systems optimization formulation. The goal here is to make you think through the steps that a manager must take to translate a business requirement into quantifiable statements for a staff. You may well find yourself assigned with a talented staff that could execute this problem formulation below and could translate into a spreadsheet formula at your direction. Business managers guide a staff to the solution, but must be familiar with the process to guide them!.
The format for this is expected to be one page ( Math equations may be hand written if desired)
1. Problem description paragraph: Include a general description of the objective to be optimized. What are the cost coefficients? What are the variables that can be listed?
2. Format outline for remaining write up. Each item must be addressed.
A. Declared variables in x or y terms with definitions. OR if you more comfortable you can use the declared variable "cells" in the spreadsheet.
B. Variable index (subscript) use and range ( number expected)
C. Given data to support- user defined
D. Objective equation
E. Constraint equations
F. An estimate (guess ) at the solution in conclusion
G An attachment of an Excel spreadsheet "set up"
Note 1. this formulation may attempt solutions in Excel, However there are 5 bonus points for turning in a working solution. Usually a 3-4 variable problem is sufficient and enough of a challenge for a working model.
Note 2: During Workshops 1-3 this modeling process will be learned. This is a good key to understand your company allocations in the future. To survive in profitably in business, the best profit margins available must be considered. The goal is to get you familiar with the concept, not experts in 5 weeks. Many of the " MBA" bosses get a deeper aspect of this subject. The realization here is to give you a " leg up" on your peers so you can suggest this.
Note 3: Collaboration is allowed on the assignment to help understand the concepts. However once you decide what you are doing and do your write-ups, then individual effort is required.
Good Luck! There are bonus points on exam for the best models. The first hour of WS-5 your team will select the best model from the group and that person will outline what they did.