Engineering Systems Analysis for Design
ESD.71, 1.146, 2.192, 3.56, 13.62, 16.861, 22.821, MIT School-Wide Elective
Professor Richard de Neufville and Dr. Frank R. Field

Syllabus
Fall, 2001

Part 1: Analysis Assuming Certainty  
           
Sept 6 Thurs 1 Introduction to Course  
        Evaluation over time  
  11 Tues 2 Engineering Economy  
  13 Thurs 3 Choice of Discount Rate Field
  18 Tues 4 Implications and Issues  
           
        System Modeling  
  20 Thurs 5 Production Function  
  25 Tues 6 Cost Fcns/ Constrained Optimization  
  27 Thurs 7 Marginal Analysis  
Oct 2 Tues 8 Technical Cost Models Introduction Field
  4 Thurs 9 Technical Cost Models Application Field
  9     *** Columbus Day Holiday*** Holiday
           
        Optimization  
  11 Thurs 10 Linear Programming  
  16 Tues 11 Linear Prog. Sensitivity Analysis  
  18 Thurs 12 Dynamic Programming  
  23 Tues 13 Optimization in Practice  
           
Part 2: Design for Uncertainty / Real Options  
           
  25 Thurs 14 Risk is the Usual Reality  
  30 Tues 15 ***Quiz on Part 1***  
           
        Decision and Utility Analysis  
Nov 1 Thurs 16 Decision Analysis Basics  
  6 Tues 17 Value of Information  
  8 Thurs 18 Introduction to Risk  
  13 Tues 19 Single Attribute Utility  
           
        Real Options  
  15 Thurs 20 Basic Concepts  
  20 Tues 21 Fundamental Calculations  
  22     *** Thanksgiving Holiday*** Thanksgiving
  27 Tues 22 Real Options  
  29   23 Option Value by Simulation Scholtes (TBA)
Dec 4 Tues 24 Option Value by Dynamic Programming  
  6 Thurs 25 Hybrid Approaches in Practice  
  11 Tues 26 Summary and Closure to Course  
           
  Week of 12th   FINAL EXAMINATION