Principles of Optimization and Decision Making
FP-KorPAcad. year: 2018/2019
The course focuses especially on the basic principles of operational analysis. First of all, students will be made familiar with the linear programming fundamentals (LP) and with methods of LP problem solution. Number of examples of practical use of LP will be presented in the seminars, such as transportation problems solution, optimization of production, cutting plans optimization, etc. Also dealt with are the basic principles of network analysis - CPM, PERT and others.
Learning outcomes of the course unit
Students will be made familiar with the basic principles of modelling of traditional management problems; they will master the basic modelling principles suitable for well structured and deterministic management problems. They will be able to apply individual methods of the operational analysis under the conditions of particular company.
For studying the course are required basic knowledge of mathematics and management.
Recommended optional programme components
Recommended or required reading
RAIS, K. DOSKOČIL, R. Operační a systémová analýza I. Skripta, Brno: VUT v Brně, Fakulta podnikatelská, 2011, 125 s., ISBN 978-80-214-4364-8. (CS)
GROS, I. Kvantitativní metody v manažerském rozhodování. 1. vyd. Praha: Grada Publishing a.s., 2003. 432 s. ISBN 80-247-0421-8. (CS)
JABLONSKÝ, J. Operační výzkum : kvantitativní modely pro ekonomické rozhodování. Praha: Professional Publishing, 2002. ISBN 80-86419-23-1. (CS)
Planned learning activities and teaching methods
Instructing is divided into lectures and exercises. Lectures are focused on the theory referring to applications, exercises on practical calculations and solving of application tasks.
Assesment methods and criteria linked to learning outcomes
The following conditions have to be met by a student to be given the credit:
1. Successful completion of the semester project within the specified deadline.
2. Successful completion of credit test.
1. Successful completion of the exam test.
Form of examination: Combined - a written test possibly followed by an oral examination.
Language of instruction
Basic terms of the operational analysis.
Mathematical modelling – linear programming (LP).
Graphical solution of LP.
Solving LP problems – simplex method: transformation of a mathematical model into a canonical form, economic interpretation of slack variables, starting basic solution, optimality test, transfer to a new basic solution, slack variables.
Transportation problem: introduction to the questions related to the transportation problems, approximation methods - ascending index method, Vogel's approximation method, example of solution of real transportation problem.
Methods of network analysis – CPM.
Methods of network analysis – PERT.
Time analysis of node defined network graph.
Practical use of learned methods.
The main objective of the course is to make students familiar with the basic methods of the optimization applicable for management decision-making, and to develop their skills necessary for the application of this knowledge to solutions of practical organizational and economic problems in a company.
Specification of controlled education, way of implementation and compensation for absences
Control of results of independent written projects.