Course detail

Principles of Optimization and Decision Making

FP-KorPAcad. year: 2011/2012

The aim of the subject is to get acquaintance with some advanced and non-standard methods of analysis and simulation techniques in economy and finance by the method of explanation of these theories, to become familiar with these theories and their use.

Language of instruction

Czech

Number of ECTS credits

6

Mode of study

Not applicable.

Learning outcomes of the course unit

The obtained knowledge and skills of the subject will enable the graduates the top and modern access in the processes of optimization and decision making in the national economy and private sector, organizations, firms, companies, banks, etc., especially in managerial, but also in economical and financial sphere.

Prerequisites

The knowledge in the area of math (linear algebra, arrays, analyses of functions, operations with matrixes) statistics (analysis of time series, regression analyses, the use of statistical methods in economy), operational analysis (linear programming), financial analyses and planning (the analyses of profits and costs, cash flow, value and bankruptcy model).

Co-requisites

Not applicable.

Planned learning activities and teaching methods

Teaching methods depend on the type of course unit as specified in the article 7 of BUT Rules for Studies and Examinations.

Assesment methods and criteria linked to learning outcomes

The credit will be granted in case of an active participation in trainings and handing in the final assignment, in case of need the written test. The work will range approximately from 8 to 12 pages concentrating on individual problem from practice leading to solution with the help of theory of fuzzy logic, artificial neural network or genetic algorithms.

Course curriculum

1. Fuzzy logic (FL): To be familiar with the basic notions and fuzzy logic rules, creation of models. The presentation of cases of application of fuzzy logic in decision making processes e.g. managerial and investment decision making, prediction, etc.
2. Artificial neural networks (ANN): To be familiar with the basic notions in the area of artificial neural networks, presentation of the notation perceptron, multilayer neural network and their parameters. The applications cover investment decision making, estimations of the price of products, real properties, evaluation of value of client, etc.
3. Genetic algorithms (GA): To be familiar with the principles of genetics, the analogy between nature and math description that enables the solution of decision making of problems. The use in the area of optimization of wide spectrum of problems is mentioned - the optimization of investment strategy, production control, cutting plans, curve fitting, the solution of traveling salesman, cluster analyses, etc.
4. Chaos theory: The theory deals with the possibilities of better description of economic phenomena than the classical methods do. The notion chaos, order and fractal are clarified, the use of this theory to determinate the level of chaos of measured and watched system is mentioned
5. Data mining: The notion data mining, the definition of aims, the selection of methods of simulation, sources and preparation of data, creation of models, their verification, evaluation, implementation and maintenance are mentioned there. The presentation of the cases of the use for strategy of cooperation with customer, direct mailing, etc
6. Simulation: The presentation of the notion system and its identification and simulation. The description of the use of FL, ANN and GA during the process of simulation of decision making processes in enterprise sphere.

Work placements

Not applicable.

Aims

The aim of the course is to make students familiar with the methods of analyses and simulation techniques (fuzzy logic, artificial neural networks, and genetic algorithms) by the way of explanation of the principles of these theories and their resulting applications in managerial practice.

Specification of controlled education, way of implementation and compensation for absences

The participation in lectures is not checked. The participation in trainings is compulsory and is systematically checked. The students are supposed to excuse for their absence. The teacher judges the reason of excuse. The way of substitution of a missed training will be set by the teacher individually.

Recommended optional programme components

Not applicable.

Prerequisites and corequisites

Not applicable.

Basic literature

Not applicable.

Recommended reading

Not applicable.

Classification of course in study plans

  • Programme BAK Bachelor's

    branch BAK-EP , 3 year of study, summer semester, compulsory

Type of course unit

 

Lecture

26 hod., optionally

Teacher / Lecturer

Exercise

13 hod., compulsory

Teacher / Lecturer