INMNAROA Decision Analysis for Managers

School of Business Administration in Karvina
Winter 2023
Extent and Intensity
2/1/0. 5 credit(s). Type of Completion: zk (examination).
Teacher(s)
doc. RNDr. David Bartl, Ph.D. (lecturer)
Guaranteed by
doc. RNDr. David Bartl, Ph.D.
Department of Informatics and Mathematics – School of Business Administration in Karvina
Contact Person: Mgr. Radmila Krkošková, Ph.D.
Timetable
Wed 12:15–13:50 B308
  • Timetable of Seminar Groups:
INMNAROA/01: Wed 13:55–14:40 B308, D. Bartl
Prerequisites (in Czech)
FAKULTA(OPF) && TYP_STUDIA(N) && FORMA(P)
Course Enrolment Limitations
The course is only offered to the students of the study fields the course is directly associated with.

The capacity limit for the course is 30 student(s).
Current registration and enrolment status: enrolled: 1/30, only registered: 0/30
fields of study / plans the course is directly associated with
Course objectives (in Czech)
Based on the knowledge of basic management courses and mathematical statistics, to provide basic and advanced mathematical methods of multi-criteria decision-making used to support decision-making. Students will grasp basic and advanced mathematical methods of multi-criteria decision-making used to support analyst and manager decision-making at all levels of management. They will also manage to solve case studies by using Excel.
Learning outcomes (in Czech)
After completing the course, the student will be able to:
- solve multi-criteria decision-making problems using the aspiration level method and the lexicographic method;
- determine the quantitative importance (weights) of criteria/variants using the ranking method, the scoring method, and various pairwise comparison methods;
- solve multi-criteria decision-making problems using weighted average methods;
- solve multi-criteria decision-making problems using the Analytic Hierarchy Process (AHP);
- solve single- and multi-criteria decision-making problems under risk, uncertainty, and vagueness;
- solve multi-criteria decision-making problems with qualitative criteria using the preference aggregation method;
- aggregate the evaluation of several experts in the case of group decision-making.
Syllabus (in Czech)
  • 1. Multi-criteria analysis an essential feature of decision making
    Introduction to Multi-Criteria Decision Making (MCDM). Decision making process. Information in DM. Theoretic and real DM process. Basic elements of MCDM. Goal, criteria, variants (alternatives), weights of criteria, methods of defining criteria and variants (alternatives), consequences of variants.
  • 2. Methods of modelling preferences among the variants and criteria
    Relations, scales, "optimal" solution, non-dominated (i.e. Pareto) solution. Properties of compromise variants. Classification of MCDM methods.
  • 3. Methods with nominal, ordinal and cardinal information of the criteria
    Classification of methods according to information of the criteria. Method of equal importance. Method of aspiration level. Lexicographic method. Scalarization methods of ordinal information of criteria. Ranking method, method of assigning points. Pairwise comparisons method. Method of Fuller´s triangle. Standardization and normalization. Utility function methods. Methods of the distance, TOPSIS method. Saaty´s method of pairwise comparisons. Least squares method of weights. Logarithmic least squares method of weights (geometric average method).
  • 4. Analytic hierarchy process (AHP) and Analytic network process (ANP)
    Formal approach to hierarchy. Priorities. Basic scale. Deriving weights from pairwise comparisons matrix. Eigenvalues and eigenvectors of reciprocal matrices. Consistency of pairwise comparisons matrix. Synthesis. System with feedback. Case studies and applications with DAME.
  • 5. Methods based on sensitivity thresholds
    Relations and sensitivity thresholds. AGREPREF method. ELECTRE-type methods. PROMETHEE-type methods.
  • 6. MCDM under risk and uncertainty
    Objective and subjective probability. Utility function under risk. Methods of evaluation of variants under risk with one criterion and/or more criteria. AHP under risk. Methods of evaluation of variants under uncertainty with one criterion and/or more criteria. Solving problems with DAME.
  • 7. Group MCDM
    Introduction to group decision making. Methods of social choice. Methods of conflicting situations. Aggregation of partial evaluations. Solving problems with Excel and DAME.
Literature
    required literature
  • RAMÍK, Jaroslav. Decision Analysis for Managers: Distance Study Text. Karviná: SU School of Business Administration, 2017. info
    recommended literature
  • RAMÍK, Jaroslav. Pairwise Comparisons Method - Theory and Applications in Decision Making. Cham, Switzerland: Springer Nature, 2020, 252 pp. Lecture Notes in Economics and Mathematical Systems 690. ISBN 978-3-030-39890-3. Available from: https://dx.doi.org/10.1007/978-3-030-39891-0. info
  • ZOPOUNIDIS, C., DOUMPOS, M. Multiple Criteria Decision Making: Applications in Management and Engineering. Berlin: Springer, 2016. ISBN 978-3319392905. info
  • ISHIZAKA, A., NEMERY, P. Multi-criteria Decision Analysis: Methods and Software. Chichester, West Sussex, U.K.: Wiley, 2013. ISBN 978-1119974079. info
  • PEDRYCZ, W. Fuzzy multicriteria decision-making: models, methods and applications. West Sussex, U.K.: Wiley, 2011. ISBN 978-0470682258. info
  • LAWRENCE, K., KLEINMAN, G. Applications in multi-criteria decision making, data envelopment analysis, and finance. Bingley, UK: Emerald, 2010. ISBN 978-0857244697. info
  • ZOPOUNIDIS, Constantin and Panos M. PARDALOS. Handbook of Multicriteria Analysis. Heidelberg: Springer, 2010. ISBN 978-3-540-92827-0. info
  • EHRGOTT, M., FIGUEIRA, J. R., GRECO, S. Trends in Multiple Criteria Decision Analysis. London: Springer, 2010. ISBN 978-1441959034. info
  • SAATY, Thomas L. Fundamentals of Decision Making and Priority Theory with the Analytic Hierarchy Process: Vol. IV of the AHP Series. 2nd ed. Pittsburgh: RWS Publications, 2006. ISBN 0-9620317-6-3. info
  • TRIANTAPHYLLOU, E. Multi-criteria decision making methods. Springer, 2000. ISBN 0-7923-6607-7. info
  • GÁL, Tomáš, Theodor J. STEWART and Thomas HANNE. Multicriteria Decision Making: Advances in MCDM Models, Algorithms, Theory, and Applications. Kluwer, 1999. ISBN 0-7923-8534-9. info
  • STEUER, Ralph E. Multiple Criteria Optimization : Theory, Computation, and Application. Wiley, 1986. Wiley Series in Probability and Statistics. ISBN 0-471-88846-X. info
    not specified
  • CHARLESWORTH, David. Decision Analysis for Managers: A Guide for Making Better Personal and Business Decisions. Second Edition. New York: Business Expert Press, 2017. ISBN 978-1-63157-604-1. info
Teaching methods (in Czech)
lectures and seminars (exercises, problems, examples and case studies), individual working out a seminar paper (solving a small problem of multi-criteria decision-making)
Assessment methods (in Czech)
Requirements for the student: regular study, attendance at seminars min. 70 %, seminar paper, final test.
Assessment: attendance at seminars, seminar paper (30 % of assessment), written test (70 % of assessment).
Assessment methods: individual working out a seminar paper (solving a small problem of multi-criteria decision-making), final written test (several problems from the areas taught).
Language of instruction
English
Further Comments
Study Materials
The course can also be completed outside the examination period.
The course is taught each semester.
The course is also listed under the following terms Winter 2021, Winter 2024.
  • Enrolment Statistics (Winter 2023, recent)
  • Permalink: https://is.slu.cz/course/opf/winter2023/INMNAROA