This course must be taken at the appropriate time in the programme of study. This implies basic knowledge of micro economics and some background in operations research / optimization or a quantitatively oriented logistics course.
Up to three exercises must receive passing grades prior to taking the examination.
4-hour written final examination with all written and printed material allowed.
The course is an introduction in how different disciplines handle uncertainties in connection with planning. The goal is that students will be able to handle uncertainties in such as price, demand and travel times qualitatively, and to some degree, quantitatively.
The course will cover uncertainty in planning from mainly three different perspectives:
- Does the decision-makers understand uncertainty? What can we do to be correctly understood? These questions are dealt with in behavioral psychology.
- Which methods should be used to handle uncertainty correctly in planning models so that flexibility is maintained? This question is dealt with in operation analysis.
- Utility theories based on analyses of lotteries and basic options theory. These theories are dealt with in economics.