IE 454

Course Code & Number

IE 454

Course Title

Multi-Objective Decision Analysis

Level

BS

Credit Hours/ ECTS Credits

(3+0+0) 3 TEDU Credits, 5 ECTS Credits

Year of Study:

Senior

Type of Course:

Elective

Mode of Delivery:

Face-to-face

Language of Instruction:

English

Pre-requisite / Co-requisite::

Catalog Description

Quantitative decision analysis methods. Value hierarchies and value functions. Characterization of preferences under certainty and uncertainty. Analytical hierarchy process. Expected value analysis. Utility theory. Modeling risk attitudes in multi-attribute decisions, certainty equivalent calculations, group decisions.

Course Objectives

The fundamental goal of this course is to teach a structured and quantitative framework for making strategic decisions in the presence of multiple competing and conflicting objectives. The course aims to cover both deterministic and stochastic decisions. It also teaches ways of mathematically modeling decision maker’s personal attitudes toward risk. The course also aims to equip the student with the ability to analyze and solve decision problems using spreadsheets.

Course Learning Outcomes

Upon succesful completion of this course, a student will be able to
1. Structure the value hierarchies in a decision scenario involving multiple competing objectives (e) (B3)
2. Identify any uncertainties and risks involved (h) (B1)
3. Model the decision problem using the relevant mathematical methods and techniques (e) (B3)
4. Use spreadsheets to solve the resulting mathematical models and produce a recommendation for the decision maker (k) (B4)
5. Quantitatively observe the additional difficulties in group decisions (i) (B2)

Recommended Reading

Keeney, R.L. and Raiffa, H., Decisions with Multiple Objectives: Preferences and Value Tradeoffs, John Wiley and Sons, 1976