Course: Mathematical Models in Economy

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Course title Mathematical Models in Economy
Course code KMA/MME
Organizational form of instruction Lecture + Exercise
Level of course Bachelor
Year of study not specified
Semester Winter
Number of ECTS credits 4
Language of instruction Czech
Status of course Compulsory-optional
Form of instruction Face-to-face
Work placements This is not an internship
Recommended optional programme components None
  • Talašová Jana, doc. RNDr. CSc.
  • Stoklasa Jan, Mgr. et Mgr. Ph.D.
Course content
1. Historical development of mathematical modeling in Economics; classification of mathematical modelling tools in Economics. 2. Network analysis models - basics to graph theory, CPM. 3. Network analysis models - PERT; time-cost analysis. 4. Queueing theory models - birth-and-death process for the single-server case. 5. Queueing theory models - birth-and-death process for the multiple-server case. Optimization models. 6. Renewal of ageing equipment models. Renewal of failing element models. 7. Deterministic inventory models - periodic review: uniform demand (shortages not permitted, sgortagges permitted). 8. Deterministic inventory models - discountinuous demand, quantity discounts (shortages not permitted). 9. Deterministic inventory multiproduct - inventory strategies, inventory control under the constraints. 10. Stochastic inventory models - a single period model with no setup cost. 11. Input-output analysis - the open Leontief´s model, distribution equation system. 12. Input-output analysis - relation between the price of the total production and value addend by working; dynamization of an input-output model.

Learning activities and teaching methods
Lecture, Projection (static, dynamic)
  • Attendace - 52 hours per semester
  • Preparation for the Exam - 45 hours per semester
  • Preparation for the Course Credit - 25 hours per semester
Learning outcomes
To know and to comprehend selected models in economics.
Application be able to apply knowledge gained in the subjects of Mathematics 1,2, Economics 1,2, event. Business Economics and Management 1,2 to solving selected problems of economy, event. economics
Basic courses of mathematics, statistics and economy.
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Assessment methods and criteria
Oral exam, Student performance, Seminar Work

Credit: the student has to solve a problem of network analysis - to find a critical path in a network graph describing an activity being chosen by him/her using the CPM method. The student has to pass a test (at least 50%). Exam: the student has to be able to describe particular models and to solve basic problems with these models.
Recommended literature
  • F. S. Hillier, G. J. Lieberman. (1990). Introduction to Stochastic Models in Operation Research. McGraw-Hill.
  • I. Gros. (2003). Kvantitativní metody v manažerském rozhodování. Grada.
  • P. Kučera, J. Švasta. (2004). Strukturní analýza I. Česká zemědělská univerzita v Praze.
  • R. Hušek, M. Maňas. (1989). Matematické modely v ekonomii. SNTL, Praha.

Study plans that include the course
Faculty Study plan (Version) Branch of study Category Recommended year of study Recommended semester