Preface xiiChapter 1 Business Analytics with Management Science 1 Chapter Objectives 1 Prescriptive Analytics in Action: Success Stories 1 Introduction 3 Implementing Business Analytics 4 Business Analytics Domain 5 Challenges with Business Analytics 9 Exploring Big Data with Prescriptive Analytics 14 Wrap Up 16 Review Questions 17 Practice Problems 19Chapter 2 Introduction to Linear Programming 23 Chapter Objectives 23 Prescriptive Analytics in Action: Chevron Optimizes Processing of Crude Oil 23 Introduction 24 LP Formulation 26 Solving LP Models: A Graphical Approach 35 Possible Outcome Solutions to LP Model 43 Exploring Big Data with LP Models 53 Wrap Up 55 Review Questions 56 Practice Problems 58Chapter 3 Business Analytics with Linear Programming 65 Chapter Objectives 65 Prescriptive Analytics in Action: Nu-kote Minimizes Shipment Cost 66 Introduction 66 General Formulation of LP Models 68 Formulating a Large LP Model 68 Solving Linear Programming Models with Excel 77 Big Optimizations with Big Data 86 Wrap Up 87 Review Questions 88 Practice Problems 89Chapter 4 Business Analytics with Nonlinear Programming 95 Chapter Objectives 95 Prescriptive Analytics in Action: Netherlands Increases Protection from Flooding 95 Introduction 96 Challenges to NLP Models 97 Example 1: World Class Furniture 101 Example 2: Optimizing an Investment Portfolio 110 Exploring Big Data with Nonlinear Programming 117 Wrap Up 118 Review Questions 120 Practice Problems 121Chapter 5 Business Analytics with Goal Programming 127 Chapter Objectives 127 Prescriptive Analytics in Action: Airbus Uses Multi-Objective Optimization Models 128 Introduction 129 GP Formulation 130 Example 1: Rolls Bakery Revisited 130 Solving GP Models with Solver 139 Example 2: World Class Furniture 142 Exploring Big Data with Goal Programming 150 Wrap Up 150 Review Questions 152 Practice Problems 153Chapter 6 Business Analytics with Integer Programming 159 Chapter Objectives 159 Prescriptive Analytics in Action: Zara Uses Mixed IP Modeling 160 Introduction 161 Formulation and Graphical Solution of IP Models 161 Types of Integer Programming Models 164 Solving Integer LP Models with Solver 165 Solving Nonlinear IP Models with Solver 167 Solving Integer GP Models with Solver 169 The Assignment Method 172 The Knapsack Problem 179 Exploring Big Data with Integer Programming 180 Wrap Up 181 Review Questions 182 Practice Problems 183Chapter 7 Business Analytics with Shipment Models 189 Chapter Objectives 189 Prescriptive Analytics in Action: Danaos Saves Time and Money with Shipment Models 190 Introduction 190 The Transportation Model 191 The Transshipment Method 201 Exploring Big Data with Shipment Models 208 Wrap Up 209 Review Questions 211 Practice Problems 212Chapter 8 Marketing Analytics with Linear Programming 223 Chapter Objectives 223 Prescriptive Analytics in Action: Hewlett Packard Increases Profit with Marketing Optimization Models 223 Introduction 224 RFM Overview 228 RFM Analysis with Excel 231 Optimizing RFM-Based Marketing Campaigns 237 LP Models with Single RFM Dimension 238 Marketing Analytics and Big Data 248 Wrap Up 249 Review Questions 250 Practice Problems 251Chapter 9 Marketing Analytics with Multiple Goals 259 Chapter Objectives 259 Prescriptive Analytics in Action: First Tennessee Bank Improves Marketing Campaigns 259 Introduction 260 LP Models with Two RFM Dimensions 261 LP Model with Three Dimensions 279 A Goal Programming Model for RFM 285 Exploring Big Data with RFM Analytics 292 Wrap Up 293 Review Questions 293 Practice Problems 294Chapter 10 Business
Arben Asllani is Marvin E. White Professor of Business Analytics at the University of Tennessee at Chattanooga. He has an M.A. and Ph. D. from the University of Nebraska at Lincoln and a B.S. degree from the University of Tirana, Albania. Dr. Asllani has been a member of the Decision Sciences Institute since 1997 and has joined several other traditional and online academic and practitioner-oriented conferences and organizations. He has won several faculty teaching and research awards and is a member of Alpha Honor Society at the University of Tennessee at Chattanooga. Dr. Asllani is Associate Editor of the American Journal of Business Research and serves on the editorial board of Service Business. Dr. Asllani has published more than 36 articles in journals including Omega, Transfusion, European Journal of Operational Research, Knowledge Management, Computers & Industrial Engineering, Total Quality Management and Business Excellence, and Service Business: An International Journal. He has also published and presented over 30 research papers at academic conferences.Dr. Asllani has a broad expertise in business analytics, especially in optimization techniques and computer-based simulations. He has served as a consultant and trainer to a variety of business and government agencies. Dr. Asllani has also taught extensively in management science, business analytics, and information systems courses, and has played an important role in developing business analytics programs in the United States and abroad.