157-0511/01 – Decision Making Methods (DMM)

Gurantor departmentDepartment of Systems EngineeringCredits3
Subject guarantordoc. Mgr. Ing. František Zapletal, Ph.D.Subject version guarantorIng. Jitka Baňařová, Ph.D.
Study levelundergraduate or graduateRequirementChoice-compulsory
Year3Semesterwinter
Study languageEnglish
Year of introduction2003/2004Year of cancellation2012/2013
Intended for the facultiesEKFIntended for study typesBachelor
Instruction secured by
LoginNameTuitorTeacher giving lectures
BAN22 Ing. Jitka Baňařová, Ph.D.
Extent of instruction for forms of study
Form of studyWay of compl.Extent
Full-time Credit 2+1

Subject aims expressed by acquired skills and competences

Students are able to: - define a relationship between decision-making and other components of supervisory process; - classify the decision-making processes form various points of view; - describe the phases of the decision-making process; - use appropriate mehods for identifiaction and determination of weights and their scaling; - use basic methods of decision-making under the risk and uncertainty, scenario building; - use multiobjective decision-making methods under the certainty, - describe the basic approaches to multiobjective optimization.

Teaching methods

Lectures
Individual consultations
Project work

Summary

Decision making is a key to the management responsibility and the basic management attribute. The decision-making is the elementary comptetence of managers. This process is the essential way how to make a change and how to ensure the effective functioning of the system. This subject contains of the description of basic properties of the decision-making processes and methods suitable for solving the various kinds of decision-making problems. Syllabus: 1) Introduction to the decision-making (from the initial problem to the consequences of the decision. 2) Classification of the decision-making problems from various points of view, practical examples. 3) Phases of the decision-making process and their description, common mistakes in practice. 4) Formulation of the decision-making problem - identification and formulation of variants and criteria, data type and their characteristics (qualitative x quantitative data). 5) Decision-making problems under the risk with the one objective, decision trees, scenario building. 6) Decision-making under uncertainty - profit and loss criteria (Waldo, Hurwitz, Laplace, Savage). 7) Assessment of weights - scales of weights measuring, methods of weights determination - pairwise comparison (Fuller triangles), Saaty method, scaling of the weights. 8) Basics of the multiobjective decision-making and its characteristics - the method of the weighted order, distance from dummy (fictive) variant. 9) AHP method (condition of use, principles, practical example). 10) ELECTRE method (condition of use, principles, practical example). 11) PROMETHE method (condition of use, principles, practical example). 12) GAIA - graphical extension of the PROMETHE method. 13) Principles and characteristics of the mono-objective optimization. 14) Principles and characteristics of the multi-objective optimization.

Compulsory literature:

RAMÍK, J., PERZINA, R. Modern methods of evaluation and decision making. Karviná: Silesian University in Opava, 2008. ISBN: 978-80-7248-497-3. WISNIEWSKI, Mik. Quantitative Methods for Decision Makers. 5th Edition. Harlow: Prentice Hall, 2011. ISBN: 978-0-273-71207-7.

Recommended literature:

ANDERSON, R. David et al. An Introduction to Management Science: Quantitative Approaches to Decision Making. Mason: South-western Cengage Learning, 2012. ISBN: 978-1-111-53222-2. HILLIER, S. Frederick, LIEBERMAN, J., Gerald. Introduction to Operations Research. 9th edition. New York: McGraw-Hill, 2011. ISBN: 978-0-07-337629-5. TAHA, A., Hamdy. Operations Research: An Introduction. 9th Edition. New Jersey: Pearson, 2010. ISBN: 9780131391994.

Way of continuous check of knowledge in the course of semester

E-learning

Other requirements

- Login to the subject - Build a team - Report on the project topic - Submission by the deadline in the LMS - Presentation of results

Prerequisities

Subject has no prerequisities.

Co-requisities

Subject has no co-requisities.

Subject syllabus:

objective decision theory. Typology of decision-making processes.   The structure of the decision-making process.   Decision making under certainty, risk and uncertainty.   Methods of determining their characteristics.   Simple methods for selecting the most suitable variant.   Logical and analytical methods.   Methods using the theory of graphs.   Decision networks.   Formally - logical methods.   Other methods.

Conditions for subject completion

Full-time form (validity from: 1960/1961 Summer semester, validity until: 2012/2013 Summer semester)
Task nameType of taskMax. number of points
(act. for subtasks)
Min. number of points
Exercises evaluation Credit 85 (85) 23
        Project Project 80  20
        Other task type Other task type 5  3
Mandatory attendence parzicipation:

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Occurrence in study plans

Academic yearProgrammeField of studySpec.ZaměřeníFormStudy language Tut. centreYearWSType of duty
2009/2010 (B6202) Economic Policy and Administration (6202R010) Finance (01) Finance P Czech Ostrava 3 Choice-compulsory study plan
2008/2009 (B6202) Economic Policy and Administration (6202R010) Finance (01) Finance P Czech Ostrava 3 Choice-compulsory study plan
2007/2008 (B6202) Economic Policy and Administration (6202R010) Finance (01) Finance P Czech Ostrava 2 Choice-compulsory study plan

Occurrence in special blocks

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