Course in Optimization Models for Industry

COURSE OBJECTIVES:
Optimization is an essential tool in every project in every large-scale organization whether in business, industry, engineering and science. Optimization models form a very important link between the business input and the firm's objective in the form of the output decision variables. This course covers various formulation and solution aspect of different types of optimization models from the modern industry.

Topics Covered:
Linear Programming Models in Finance
- Asset/liability cash-flow matching
- Short term financing, dedication
- Arbitrage detection using linear programming

Data Envelopment Analysis for Decision Making
- Assessing organizational efficiency in multi-branch organizations
- Input/output oriented CCR optimization models.
- Improving the performance using DEA

Introduction to Quadratic Programming
- The quadratic programming problem
- Optimality conditions; Interior point methods

Portfolio Optimization Using Quadratic Programming
- Approximation for the general portfolio analysis
- Optimal quantitative approach of bond indexation
- Recovering risk-neutral probabilities from option prices

Multiobjective Decision Making
- Pareto optimality for multiobjective decision making
- Weighted sum approach for joint optimization of many objectives of a firm
- Multiobjective simulation optimization
- Multiobjective portfolio optimization

Decision Making through Nonlinear Programming Models
- Introduction; Nonsmooth optimization: subgradient methods
- NLP optimization models for volatility estimation

Dynamic Programming Models in Finance
- Abstraction of the dynamic programming approach
- DP optimization models for option pricing
- DP models: structuring asset-backed securities

Energy Policy Planning using Bilevel Programming Models
- Introduction to bilevel optimization
- Energy policy planning using bilevel optimization models
- Optimization models for energy-economy-environmental interaction in a general equilibrium framework

Integer Programming Models in Finance
- Integer programming models for industrial auctions
- Constructing an index fund
- Integer programming optimization with minimum transaction levels

Network Models; Min Cost Flow & Multicommodity Flow Problems
- Introduction to network optimization problems
- Network, min cost flow models for transportation problems
- Multicommodity flow problems for information convergence

Optimization Models for Manufacturing planning and Control
- Production planning optimization models
- Demand planning: lost sales/back orders
- Multiple locations and resource planning optimization
- Multi-item capacitated lot-sizing optimization

Optimization Models for Marketing
- Cross functional decision making using optimization models
- Product line design optimization

Optimization Models for Forestry Industry
- Strategic planning: land allocation optimization
- Forestry operational planning and decision making models
- Addressing environmental/spatial concerns using optimization

Optimization of Telecommunication Networks
- Designing large-scale telecommunications networks
- Access and backbone network design optimization
- Capacitated survivable backbone network design optimization
- Optimization issues in quality of service

Applied Optimization in Agribusiness Management
- Farm and agribusiness optimization
- Farm firm development
- Policy optimization models to analyze the effect to agricultural and resource polices on the agricultural economy

Optimization in Aero Space Industry
- Multidimensional dimensional assignment optimization
- Trajectory optimization

Optimization Models in Financial Services Industry
- Optimization models for market equilibrium analysis
- Optimization models for financial risk management

Optimization Models for Oil and Gas Recovery
- Underground oil production optimization models
- Development planning and management of petroleum reservoirs using optimization models
- Optimization of field development scheduling and well placement design

Optimization in Rail industry
- Optimization problems for infrastructure planning and track maintenance
- sizing of fleets of locomotives and railcars
- Optimization problems for train scheduling, service frequency planning, freight routing

Models in Urban and Air Transportation
- Optimization models under static/dynamic information processes
- Dynamic assignment for the load matching problem
- Optimization models for booking control, crew pairing and aircraft fleet
- Multiperiod optimization models for airline overbooking