BUS 190: QUANTITATIVE BUSINESS ANALYSIS

In many important decision-making situations, the inherent complexity in the choice situation may leave a decision-maker feeling somewhat lost and confused. Without clear focus and with pressing time constraints, the decision-maker may be forced into relying on simply a best guess. While this might work for some situations, mere guessing does not always provide good results. In many highly complex choice situations of importance, the decision-maker might want to be a little more careful and understand the situation a little more completely. The decision-maker might want to take a more scientific approach to assure a good choice. This course is on the science of decision-making.

Besides providing a conceptual framework for understanding choice situations, the course covers three fairly independent major topic areas from the general field referred to as the management sciences, operations research, or the decision sciences. The first section of the course is on decision analysis. With an emphasis on the complications associated with uncertainty, this section covers the basic concepts, structures, and measurement for the general decision-making situation. Moreover, the concepts of decision analysis also serve as a straightforward guide for the analysis of the other topic areas.

The second section covers the concepts and application of linear programming. The major application area is the allocation of resources in the best possible way. The modeling procedure is the simplex method. A computer project provides an opportunity to use linear programming software as an interactive decision-making tool.

The third section covers the transportation model and project planning models. If time permits, a second computer project is from the transportation model area. The project requires the determination of the optimal solution and the analysis of numerous what if considerations.

Besides an exposure to important standard tools for the professional decision-maker, you will be involved in a process of carefully thinking your way through complex situations. For virtually all decision-making situations, you will discover the specific work that needs to be done -- how to get started, what needs to be accomplished, and how to accomplish what is required. The approach requires personal involvement and careful thinking. Through a careful, systematic, sequential focused thought process, the decision environment is clearly defined, adequately measured, and understood. The choice becomes a conclusion of logic. Moreover, since each part of the clearly defined analysis can be easily understood by others, the structured logic provides a forum for group decisions. The course offers you an opportunity to improve significantly your personal decision-making capabilities. Take advantage of this opportunity. 

EVALUATION: Three examinations (20% each); two computer projects (10% each); and homework (20%). 

TEXT: David E. Smith, DECISION SCIENCES, Third Edition. Needham Heights, Ma: Pearson Custom Publishing, 2001. 

ASSIGNMENTS: From textbook chapter material. 

1. Introduction To The Decision Sciences

DECISION ANALYSIS

2. Decision-Making Complicated By Risk and Uncertainty 

3. The Decision Tree 

4. A Dynamic Sequential Search For Improving The Future

5. An Appropriate Criterion To Measure Worth (Part only) 

*** First Examination ***

MATHEMATICAL MODELS FOR CHOICE

6. Linear Programming: Basic Concepts 

7. Linear Programming: The Simplex Method 

*** Second Examination ***

*** Computer Project I: A Linear Programming Situation ***

8. The Transportation Model

*** Computer Project II: A Transportation Choice Situation***

9. Project Planning, Scheduling, and Control: PERT And CPM Network Models

( Coverage restricted to time available.)

*** Third Examination***
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Other Information about David E. Smith: 

Education: Ph.D. in Business Administration, University of Santa Clara, 1969; MBA, University of Santa Clara, 1969; M.S. in Management Science, San Francisco State College, 1966; and B.S. in Applied Statistics, San Francisco State College, 1964. 

Profession: At San Jose State University since 1969; Professor of Business Administration, 1976-; and Chairman, Marketing/Quantitative Studies, 1986-89.  

Areas of Professional Interest: Decision Analysis; Linear Programming; and Forecasting. 

Courses Taught: Bus 90, Business Statistics; Bus 130, Introduction to Marketing; Bus 187, Future Studies; Bus 190, Quantitative Business Analysis; Bus 206, Quantitative Models for Decision Making; and Bus 260, Managerial Decision Analysis.