CHADT, Karel and Martin PETŘÍČEK. SENSITIVITY CURVE OF DECISION-MAKING PROCESS OF THE COMPANY. ACC JOURNAL. Liberec: Technická univerzita v Liberci, 2018, roč. 24, No 2, p. 40-46. ISSN 1803-9782.
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Basic information
Original name SENSITIVITY CURVE OF DECISION-MAKING PROCESS OF THE COMPANY
Name (in English) SENSITIVITY CURVE OF DECISION-MAKING PROCESS OF THE COMPANY
Authors CHADT, Karel and Martin PETŘÍČEK.
Edition ACC JOURNAL, Liberec, Technická univerzita v Liberci, 2018, 1803-9782.
Other information
Type of outcome Article in a journal
Confidentiality degree is not subject to a state or trade secret
Organization unit University College Prague – University of International Relations and Institute of Hospitality Management and Economics, Ltd.
Keywords in English Sensitivity curve; Risk analysis; Monte Carlo simulation; Multiple-criteria decision making
Tags International impact, Reviewed
Changed by Changed by: doc. Ing. Martin Petříček, Ph.D., učo 14750. Changed: 26/9/2018 09:33.
Abstract
This article focuses on the issue of the sensitivity curve as an indicator of risk during decision-making process. The aim of this article is to present the measurement capabilities for sensitivity of the decision-making process within the issue of the use of quantitative methods in managerial decision making. The approach that is presented in the article uses the measurement of the sensitivity of the decision-making model to its input parameters. The whole decision-making process is a multiple-criterion and to determine a compromise variant there is Weighted Sum Approach (WSA) method used. This article uses the coefficient that determines the percentage change that is necessary to choose the second best option. In addition this approach is supported by formation of sensitivity curve. This curve represents the change in value of the output (using method WSA) when changing the selected input parameter of decision-making process. To build a sensitivity curve there is probabilistic simulation approach (Monte Carlo method) used.
Abstract (in English)
This article focuses on the issue of the sensitivity curve as an indicator of risk during decision-making process. The aim of this article is to present the measurement capabilities for sensitivity of the decision-making process within the issue of the use of quantitative methods in managerial decision making. The approach that is presented in the article uses the measurement of the sensitivity of the decision-making model to its input parameters. The whole decision-making process is a multiple-criterion and to determine a compromise variant there is Weighted Sum Approach (WSA) method used. This article uses the coefficient that determines the percentage change that is necessary to choose the second best option. In addition this approach is supported by formation of sensitivity curve. This curve represents the change in value of the output (using method WSA) when changing the selected input parameter of decision-making process. To build a sensitivity curve there is probabilistic simulation approach (Monte Carlo method) used.
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