OPF:MMENARAM Decision Analysis for Managers - Course Information

MMENARAM Decision Analysis for Managers

Extent and Intensity

2/1/0. 4 credit(s). Type of Completion: z (credit).

Teacher(s)

prof. RNDr. Jaroslav Ramík, CSc. (lecturer)
Ing. Radomír Perzina, Ph.D. (seminar tutor)
Ing. Filip Tošenovský, Ph.D. (seminar tutor)

Guaranteed by

prof. RNDr. Jaroslav Ramík, CSc.
Department of Informatics and Mathematics – School of Business Administration in Karvina

Prerequisites (in Czech)

K absolvování předmětu nejsou vyžadovány žádné podmínky a předmět může být zapsán nezávisle na jiných předmětech.

Course Enrolment Limitations

The course is also offered to the students of the fields other than those the course is directly associated with.

fields of study / plans the course is directly associated with

• Managerial Informatics (programme OPF, N_SYSINF)

Course objectives

Based on the knowledge of basic management courses and mathematical statistics provide basic and advanced mathematical methods of multi-criteria decision making. It also aims to practically handle case studies using Excel and Expert Choice.

Syllabus

• 1. Multicriteria - an essential feature of decision-making and evaluation
  Introduction to multi-criteria decision making. Decision-making process. The information in decision-making. Theoretical and real decision-maker. The basic elements of a multi-criteria decision making. Criteria - setting goals and criteria, weighting of the criteria, methods of determining variants and consequences of variations.
  2. Methods of modeling of preferences between alternatives and criteria
  Relations. Scales. "Optimal" solution - undominated solution. Properties of compromise variants. Classification of multi-criteria decision making tasks.
  3. Methods of nominal and ordinal information on the criteria
  Classification of methods according to the information on the criteria. Methods of nominal information on the criteria. The method of equal importance. Method of aspiration levels. Methods of ordinal information on the criteria. Lexicographical method. Methods using scalarization of ordinal information on the criteria. Ranking and scoring method. Methods of paired comparison. Fuller triangle method.
  4. Methods of cardinal information on the criteria
  Introduction to the methods of cardinal information on the criteria. Standardization and normalization. Methods based on the utility function. Methods based on pairwise comparison of alternatives. Methods based on distance. Saaty method of pairwise comparisons. The method of least squares for calculation of weights. The method of logarithmic least squares determination of weights.
  5. Analytical Hierarchy Process (AHP)
  Hierarchy. A formal approach to the hierarchy. Priorities. Basic scale. Weights calculation based on pairwise comparisons matrix. Eigenvalues and eigenvectors of reciprocal matrices. Consistency matrix of pairwise comparisons. Synthesis.
  6. Using AHP in decision-making - Case Study 1
  Choosing a car, choosing a vacuum cleaner, a selection of prospective business.
  7. Using multi-criteria decision making in decision-making - Case Study 2
  Application of multi-criteria decision making methods to the practical problems of optimal decision making.
  8. Methods based on thresholds of sensitivity
  Introduction - relations and thresholds. Method AGREPREF. ELECTRE type methods. Methods of type PROMETHEE.
  9. Multi-criteria decision making under risk
  The decision-making task in terms of risk. Objective and subjective probability. Utility function under risk. Variants assessment methods under risk with a single criterion. Methods of evaluation of variants under risk with more criteria. AHP in multicriteria evaluation of variants under risk.
  10. Multi-criteria decision making under uncertainty
  Multicritaria decision making in conditions of risk, uncertainty and vagueness. Methods for evaluation of alternatives under uncertainty with a single criterion. Methods for evaluation of alternatives under uncertainty when multiple criteria.
  11. Multi-criteria decision making under vagueness
  Definition of a fuzzy set. Fuzzy intervals and fuzzy numbers. Arithmetic operations on fuzzy intervals. Ordering of fuzzy intervals. Fuzzy criteria. Multi-criteria decision making with fuzzy criteria.
  12. Group decision making
  Introduction to group decision making. Aggregation of partial evaluation.
  13. Methods of social choice
  Methods of conflict situations.
  

Literature

recommended literature
• SAATY, T., VARGAS, G. Models, Methods, Concepts & Applications of the Analytic Hierarchy Process. New York: Kluwer Academic, 2001. ISBN 0-7923-7267-0. info
• TRIANTAPHYLLOU, E. Multi-criteria decision making methods. Springer, 2000. ISBN 0-7923-6607-7. info

Teaching methods

Skills demonstration
Seminar classes

Assessment methods

Credit

Language of instruction

English

Further comments (probably available only in Czech)

The course can also be completed outside the examination period.

Teacher's information

Seminar work, 70% attendance at seminars, test

Activity	Difficulty [h]
Ostatní studijní zátěž	46
Přednáška	26
Seminář	13
Zápočet	30
Summary	115

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