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Quantitative methods

Type of study Bachelor
Language of instruction English
Code 157-0574/02
Abbreviation KMe
Course title Quantitative methods
Credits 6
Coordinating department Department of Systems Engineering and Informatics
Course coordinator doc. Mgr. Ing. František Zapletal, Ph.D.

Subject syllabus

1. Operation research as a systemic basis for quantitative decision making. Development and systemic features of operation research. Process of economic-mathematical modeling. Classification of operation research methods, usability in solving economic problems.
2. Introduction to linear programming (LP) + general solution of optimization problem + parts of mathematical model + set of possible solutions + possible number of solution of LP + different types of LP.
3. Graphical solution of LP problem - general procedure, limitations for using graphical solution, possible sets of acceptable solutions, consequences of limitation of the equation in models, sensitivity analysis of optimum in graphical solution, possible solutions of LP problems.
4. Canonical form of LP problem, simplex table, algorithm of solution for single-phase and two-phase simplex method, individual steps of simplex method, interpretation of simplex tables.
5. Duality of LP problem - the importance of duality, basic theorems on duality, symmetric and asymmetric dual models, shadow prices and their use for sensitivity analysis, solution stability intervals.
6. Transport problems - specification of traffic problems, classification of traffic problems, searching for acceptable solution (VAM, MSR, IM), search for optimal solution - MODI.
7. Multicriterial linear programming - motivation and application, solution dominance, aggregation of purpose functions according to defined weights, tasks with compromise solution.
8. Introduction to network analysis (SA) and graph theory - embedding in the framework of project management, target and possibility of application, classification and definition of network analysis methods, project specification and network graph creation, fictional edges.
9. CPM - time analysis in network graph, types of reserves and their importance, critical path and its analysis, percentage of criticality and possibilities of use from the perspective of risk management, project criticism, linear diagram, analysis of project resources.
10. PERT method - stochastic time analysis, density of activity duration distribution and mean and variability characteristics, density distribution of the earliest possible end date of the whole project and corresponding characteristics, typical problem of using PERT method.
11. Input-output analysis - visualization of the system (elements and flows), basic logic and assumptions.
12. Input-output analysis - chess board tables, equilibria in Leontief's models (sales and inputs), applications.

E-learning

LMS Moodle

Literature

HILLIER, Frank and Mark HILLIER. Introduction to Management Science, McGraw-Hill Interamericana de Espaňa S.L., 6th Edition, 2021. 642 p. ISBN: 9781260091854 .
WINSTON, Wayne L. and S. Christian ALBRIGHT. Practical Management Science, Cengage Learning, 6th Edition, 2018. 888 p. ISBN: 9781337406659 .
ANDERSON, David R., SWEENEY, Dennis J., WILLIAMS, Thomas A., CAMM, Jeffrey D. and James J. COCHRAN. An Introduction to Management Science: Quantitative Approach, Cengage Learning, 15th Edition, 2018. 912 p. ISBN: 9781337406529 .

Advised literature

TAYLOR, Bernard. Introduction to Management Science, 13th Edition, Pearsons, 2018. 864 p. ISBN 978-978-0134730660.
ISICHENKO, Michael. Quantitative Portfolio Management: The Art and Science of Statistical Arbitrage, 1st Edition, Wiley, 2021. 304 p. ISBN‎ 978-1119821328.
HANEVELD KLEIN, K. Willem, VLERK van der, H. Maarten and Ward ROMEIJNDERS. Stochastic Programming: Modeling Decision Problems Under Uncertainty, 1st Edition, Springer, 2020. 261 p. ISBN 978-3030292218 .