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Decision Making Methods

Type of study Follow-up Master
Language of instruction English
Code 157-0575/02
Abbreviation MVRe
Course title Decision Making Methods
Credits 4
Coordinating department Department of Systems Engineering and Informatics
Course coordinator doc. Mgr. Ing. František Zapletal, Ph.D.

Subject syllabus

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) Decision trees and their application.
3) Decision-making under uncertainty - profit and loss criteria (Waldo, Hurwitz, Laplace, Savage).
4) Assessment of weights - scales of weights measuring, methods of weights determination - pairwise comparison (Fuller triangles).
5) Assessment of weights - scales of weights measuring, methods of weights determination - Saaty method, scaling of the weights.
6) Multi attribute decision making - TOPSIS and WSA method.
7) Multi attribute decision making - AHP method.
8) Multi attribute decision making - PROMETHEE and Even-Swap method.
9) Psychological aspects of decision making - biases, their sources and consequences.
10) Game theory - introduction and classification.
11) Game theory - matrix games.
12) Game theory - matrix games: mixed strategies (use of linear programming).
13) Game theory - bi-matrix games.
14) Game theory - cooperative games and distribution of profit.

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. 7th Edition. Harlow: Prentice Hall, 2019. ISBN: 1292276614 .

TAHA, A., Hamdy. Operations Research: An Introduction. 10th Edition. New Jersey: Pearson, 2017. ISBN: 9781292165547 .

Advised literature

ANDERSON, R. David et al. An Introduction to Management Science: Quantitative Approaches to Decision Making. Mason: South-western Cengage Learning, 2017. ISBN: 9781473729322 .

HILLIER, S. Frederick, LIEBERMAN, J., Gerald. Introduction to Operations Research. 11th edition. New York: McGraw-Hill, 2020. ISBN: 1259872998 .