Introduction to Probability Models: Operations Research. Volume 2

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Brooks/Cole-Thomson Learning, 2003 - Business & Economics - 729 pages
This text, the second volume of Wayne Winston's successful OPERATIONS RESEARCH: APPLICATIONS AND ALGORITHMS, FOURTH EDITION, covers probability models with recent contributions from financial engineering, computational simulation and manufacturing. The specific attention to probability models with the addition of recent practical breakthroughs makes this the first text to introduce these ideas together at an accessible level. Excellent problem sets abound. The text provides a balanced approach by developing the underlying theory while illustrating them with interesting examples. All of the necessary mathematical requirements are reviewed in Chapter 1.

Contents

Review of Calculus
1
1
7
1
13
7
22
Decision Making
37
Probabilistic Inventory Models
137
Prospect Theory
145
5
155
8
388
Probabilistic Dynamic
401
State Is Certain 273
410
4
419
5
430
Simulation with Process Model
448
Simulation with the Excel
469
Product Simulations
513

R S Periodic Review Policy
164
Markov Chains
180
3
188
6
199
Deterministic Dynamic
218
3
226
Programming Recursions 246
381
Optimization under Uncertainty with
532
Option Pricing and Real Options
565
Portfolio Risk Optimization
609
Forecasting Models
632
Risk Crib Sheet
709
Index
723

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About the author (2003)

Wayne L. Winston is Professor Emeritus of Decision Sciences at the Kelley School of Business at Indiana University and is now a Professor of Decision and Information Sciences at the Bauer College at the University of Houston. He has won more than 45 teaching awards and is a six-time recipient of the school-wide MBA award. His current interest focuses on showing how to use spreadsheet models to solve business problems in all disciplines, particularly in finance, sports, and marketing. In addition to publishing more than 20 articles in leading journals, Dr. Winston has written such successful textbooks as OPERATIONS RESEARCH: APPLICATIONS AND ALGORITHMS; MATHEMATICAL PROGRAMMING: APPLICATIONS AND ALGORITHMS; SIMULATION MODELING WITH @RISK; DATA ANALYSIS FOR MANAGERS; SPREADSHEET MODELING AND APPLICATIONS; MATHLETICS, DATA ANALYSIS AND BUSINESS MODELING WITH EXCEL 2013; MARKETING ANALYTICS; and FINANCIAL MODELS USING SIMULATION AND OPTIMIZATION. Dr. Winston received his B.S. degree in mathematics from MIT and his Ph.D. in operations research from Yale.

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