Course: Mathematical Methods of Decision Making

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Course title Mathematical Methods of Decision Making
Course code KMA/MMR
Organizational form of instruction Lecture + Exercise
Level of course Bachelor
Year of study not specified
Semester Summer
Number of ECTS credits 3
Language of instruction Czech, English
Status of course Compulsory-optional, Optional
Form of instruction Face-to-face
Work placements This is not an internship
Recommended optional programme components None
Course availability The course is available to visiting students
Lecturer(s)
  • Talašová Jana, doc. RNDr. CSc.
  • Bebčáková Iveta, Mgr. Ph.D.
Course content
1. Basic types of decision making situations and corresponding mathematical models. 2. Multiple criteria decision making on a finite set of alternatives - mathematical formulation of the problem, examples in economic practice. 3. Rules for creating sets of criteria, classification of decision criteria, types of evaluating scales. 4. Methods of setting criteria weights. 5. Formal analysis of criteria sets, independency of criteria. Methods for creating decision alternatives. 6. Multiple criteria decision making without information about criteria preferences: MINIMAX, MAXIMAX, Hurwitz's rule, OWA. Decision making with ordinal information concerning importance of criteria: Lexicographical Ordering Method and its modifications. 7. Methods based on the weighted average of partial evaluations (with accent to Partial Goals Method and AHP). 8. Multiple Criteria Utility Method. 9. Methods minimizing the distance to the ideal alternative. Compensation Method. 10. Decision making methods with cardinal information about criteria preferences that are appropriate for ordinal criteria (Electre III Method etc.).

Learning activities and teaching methods
Lecture, Dialogic Lecture (Discussion, Dialog, Brainstorming)
  • Attendace - 39 hours per semester
  • Semestral Work - 30 hours per semester
  • Preparation for the Exam - 20 hours per semester
Learning outcomes
To master the theory of multiple criteria decision making. Get a knowledge of many methods of decision making under multiple criteria.
Application Apply the theory of multiple criteria decision making and decision making under risk to solving practical problems. Get a knowledge of many methods of decision making under multiple criteria and/or risk.
Prerequisites
Basic course of mathematics.

Assessment methods and criteria
Dialog, Seminar Work

Credit: Case study - an application of MCDM methods.
Recommended literature
  • C. L. Hwang, K. Yoon. (1980). Multiple Attribute Decision Making. Springer-Verlag Berlin, Heidelberg, New York.
  • J. Fotr, J. Dědina, H. Hrůzová. (2003). Manažerské rozhodování. Ekopress, Praha.
  • J. Fotr, M. Píšek. (1986). Exaktní metody ekonomického rozhodování. Academia, Praha.
  • J. Ramík. (1999). Vícekriteriální rozhodování - analytický hierarchický proces (AHP). OPF SU, Karviná.
  • J. Talašová. (2003). Fuzzy metody vícekriteriálního hodnocení a rozhodování. VUP, Olomouc.
  • P. Dostál, K. Rais, Z. Sojka. (2005). Pokročilé metody manažerského rozhodování. Grada Publishing, Praha.
  • T. L. Saaty. (1980). The Analytical Hierarchy Process. McGraw Hill New York.


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