Module Identifier AC31210  
Academic Year 2004/2005  
Co-ordinator Dr Jihe Song  
Semester Semester 1  
Pre-Requisite AC30210 (can be pre- or co-requisite)  
Course delivery Lecture   16 Hours  
  Seminars / Tutorials   5 Hours  
Assessment TypeAssessment Length/DetailsProportion
Semester Exam2 Hours  85%
Semester Assessment 2,000 word essay15%

Learning outcomes

On successful completion of this module students should be able to:
Apply linear programming to managerial and financial problems. The focus, however, is on understanding and adaptability.


To enlarge the analytical toolkit by introducing one particular optimisation technique, ie, linear programming; second, to enable you to apply this tool to a variety of industrial and financial situations such as cost minimisation and profit maximisation; third, to enable you to appreciate how to formulate certain business strategies as zero-sum two-person games.

Brief description

This module is concerned with the study of some operational research models and their applications in commerce and industry. The emphasis is on understanding and adaptability rather than technique and will focus on basic linear algebra; introduction of linear programming; simplex algorithm; sensitive analysis; transportation and assignment problems and decision making under uncertainty.


Product mix problems as linear programmes
Graphical solution
Shadow prices and sensitivity analysis
The Simplex Algorithm
Use of the EXCEL "Solver" Tool
Cost minimisation problems
Further applications
The Theory of Games

Reading Lists

** Recommended Text
Dantzig, George (1963) Linear Programming and Extensions Princeton University Press
Dorfman, Samuelson and Solow (1958) Linear Programming and Economic Analysis McGraw Hill
Wilkes, F M (1980) Elements of Operations Research McGraw Hill
Taha, H Operations Research: An Introduction Macmillan
Wagner, H Principles of Operations Research Prentice Hall
Keys, P (1995) Understanding the Process of Operational Research John Wiley & Sons


This module is at CQFW Level 6