ORL-30306 Decision Science 2

Course

Credits 6.00

Language of instruction:

English

Assumed knowledge on:

ORL-20306 Decision Science 1.

Continuation courses:

ORL-30806 Operations Research and Logistics.

Contents:

1. Multicriteria decision making
Ways of dealing with problems that have several, mostly conflicting, objectives. In that case the decision making process focusses on finding and evaluating efficient solutions. This topic also comprises utility, in order to incorporate the personal judgements of the decision maker about uncertainties and outcome-values.
2. Simulation
Many systems are so complex that you cannot optimise them in a straightforward, analytical way. Simulation increases the understanding of such a system by building a model of reality, and analysing its behaviour.
3. Coping with risk and uncertainty
Decision Science 1 focused on deterministic problems. However, in practice often risk and uncertainty occur. Decision Science 2 offers various techniques to cope with these.
4. Approximation methods (heuristics)
In many cases problems are too big or too complex to find an optimal solution in a reasonable amount of time. In those cases we can use approximation methods (heuristics) that find relatively good solutions in a relatively short amount of time.

Learning outcomes:

After successful completion of this course students are expected to be able to:
- analyse an MCDM situation using multi-objective programming and compromise programming;
- apply the provided approximation methods to solve a small-scale problem;
- analyse a decision situation where risk and uncertainty occurs, using value of information, simulation, Bayesian updating, and utility theory;
- for a provided situation construct a simulation model in professional software;
- analyse the outcome of a simulation model;
- judge which decision making tool is appropriate in a given decision situation.

Activities:

- studying the written materials;
- making exercises;
- acquiring knowledge and skills by active participation in the tutorials;
- acquiring skills in active participation in practicals.

Examination:

Written closed book exam (100%) provided sufficient testimonial for practical assignment. The exam can only be passed if for every separate part (BEC and ORL) of the written exam at least 40% of the points are attained. See Course Guide for additional rules and regulations.

Literature:

G.D.H. Claassen; Th.H.B. Hendriks; E.M.T. Hendrix. (2007). Decision Science: Theory and applications. ISBN: 9789086860012. (also used in Decision Science I)
For other materials: see course guide.