Week 8 – Prescriptive Analytics: Determining the Most Favorable Outcomes

Introduction to IDEA

IDEA: Decision Parameters

The choice of supplier affects the capacity and costs

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Building Blocks of Decision Tree

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Decision Tree for IDEA

The decision for IDEA is seen below:
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IDEA Decision Tree: Risk Strategies

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Maxi-Min and Maxi-Max Strategies

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IDEA Decision Tree: Maxi-Min Strategy and Maxi-Max Strategy

Expected-Value-Maximizing Strategy

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IDEA Decision Tree: Expected-Value-Maximizing Strategy

Analyzing IDEA Decision Tree

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Decision Tree: Application

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IDEA: Original problem

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IDEA: Complex Demand Model

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Understand IDEA: Formula for Simulation

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Understand IDEA: Simulation

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Simulation Result: Weak Market Supplier S

IDEA: Expected Value Based on Simulation

IDEA: Decision Result Based on Simulation
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IDEA: Updating Demand Model

IDEA: New Conditions by Supplier P

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IDEA: Weak Market With Supplier P Simulation

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IDEA: Weak Market With Supplier P Simulation Results

IDEA: Simulated Expected Profit and Flexible Q

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Returning to the Newsvendor Problem

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Excel Simulation for Newsvendor Problem

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Newsvendor Problem: Constraints on Risk

Patent Litigation Example: Cellectis

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Patent Litigation: Analyzing Cellectis’s Decision Tree

Advanced Optimization
IDEA’s Optimal Solution: Recap

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IDEA: Linear Optimization

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Algebraic Formulation of the Optimization Problem

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IDEA: Linear Optimization

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