Course content

This course covers use of mathematical models as decision support for planning in technological organizations. The planning problem will often consist of maximizing or minimizing an economical objective under scarce resources and technological requirements. The planning is done by 1) formulating a simplified model of the problem, 2) calculate an optimal solution for the model and 3) interpret and implement the calculated solution. This course covers both deterministic and stochastic problems. The following subjects are covered: Different optimization models (linear, non-linear, simple integer and dynamic), decision trees, simple inventory-, queuing theory and simulation. This course will for some subjects continue directly from subjects taught in TIØ4116 Microeconomics and Investment Analysis, by optimizing non-linear microeconomic problems and by modeling investment decisions under hard budget constraints. In addition will the course cover the use of commercial spread sheet software on models both for optimization and simulation.

Learning outcome

The objective is to give the students basic knowledge about how optimization based decision support can used economic planning in technological organization, and to give them some training in analyzing, modelling and solving decision problems with both technical and economic aspects by use of spread sheets.

Learning methods and activities

Lectures, cases and exercises with and without computers. If there is a re-sit examination, the examination form may change from written to oral.

Compulsory assignments

• Exercises

Recommended previous knowledge

The course requires knowledge from basic courses in mathematics, statistics, computer science and the course TIØ4116 Microeconomics and Investment Analysis.

Course materials

Given at the start of the course.

Credit reductions