Description

Theory
2

Laboratory
3

Instructors

Maria Teresa Costa

Contents

CP1: Decision Analysis in Deterministic Environments (3 weeks)
- Linear optimization models as decision support tools
- Network Optimization Problems
- Case studies in different contexts

CP2: Decision Analysis in Uncertainty Environments (5 weeks)
- Concepts of probability, risk, and uncertainty
- Probabilistic and non-probabilistic decision criteria
- Opportunity cost
- The value of perfect information
- Utility function and the concept of risk aversion
- Bayes' theorem and applications
- Sequential decisions and decision trees
- Calculation of expected values and optimal strategies
- Sensitivity analysis
- Multicriteria decision analysis (MCDA)
- AHP (Analytic Hierarchy Process) method
- Group decision-making

CP3: Business Intelligence (BI) and Decision Analysis (3 weeks)
- The role of BI in strategic decision-making and Operational
- Introduction to Power BI
- Case studies with Power BI

Learning Outcomes

This course aims to provide students with the knowledge and ability to apply decision analysis techniques. The main objective is to introduce students to models, processes and tools to help decision-makers to structure and explore decisions characterized by multiple objectives, uncertainty, complexity and differences of opinion.

At the end of the course, the student should be able to:
OB1: Complement training in optimization as a decision support tool;
OB2. Identify problems where decision analysis techniques are applied;
OB3. Be familiar with concepts and strategies to support the evaluation of alternatives and decision making;
OB4. Apply appropriate techniques in the various phases of analyzing decision problems, including defining and structuring problems, building models, using quantitative methods and supporting software to obtain solution proposals;
OB5. Develop solution research capabilities in a fundamentally self-oriented or autonomous way;
OB6. Know real examples of application of decision analysis tools;
OB7. Critically analyze the proposed solutions, recognizing the importance of the role of the decision-maker;
OB8. Develop teamwork skills, personal and interpersonal and communication skills.