IE232 Operations Research : Stochastic Models

📋 Project Description

Model, simulate, and analyze a real-world system of your choice. The system must be stochastic (involving randomness) and controllable in the sense that the system designer can influence its behavior through decisions or policies. You may work individually or in groups of up to three students.

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Deadlines:

• Proposal due by TBD.
• Final report due by Dec 19, 2025. </aside>

✅ Submission Requirements

Proposal:

• Proposal should include a short paragraph outlining your plan for the project and members of your group (name and student ID).

Final report:

• Two-page report (PDF)

  Your write-up should include:

  • A description of the real-world system.
  • Details of your modeling approach.
  • Analysis for determining an optimal policy.
  • Simulation results (with figures included in the report).

• Jupyter Notebook (.ipynb)

  • Python code that reproduces your simulation results. All results must be reproducible with the submitted notebook.

• (Optional) Animation (.gif)

  • GIF animation that illustrates simulation results with suboptimal policy and optimal policy.

✏️ Grading Criteria

• Proposal (10 points)
  • –1 point per late day.
• Model Quality (25 points)
  • Does your model effectively describe the system?
  • Are appropriate random distributions with realistic parameters used?
  • Does the system include random components?
• Analysis (25 points)
  • Does your analysis or simulation reveal the main features of the system?
  • Are simulation results or theoretical analyses clearly reported?
  • For theoretical values, are formulas or procedures provided?
• Simulation Code (20 points)
  • Does the code closely mimic the real-world system?
  • Can all results be reproduced using the submitted notebook?
• Presentation (20 points)
  • Is the report clear, well-structured, and effective in explaining the model and results?
  • Are figures included and appropriately labeled?
  • High-quality visualizations (e.g., animations) are encouraged.
  • Clear, concise explanations are expected.
• Late Submission Penalty: –2 points per day.

💡 Example Project Ideas

1. Inventory Management
   • A store faces random daily demand for a product (e.g., groceries or electronics).
   • Decision: how much to order each day.
   • Goal: minimize holding and shortage costs.