Economic-Mathematical Models and Methods

To familiarize students with the applications of optimization methods for decision-making processes in various areas, e.g. determining the optimal structure of the national economy, foreign trade optimization, optimization of production, management of large infrastructure projects, evaluation of investment feasibility, decision-making in conditions of uncertainty or incomplete information, solving optimization problems of large dimensions, etc.

This subject covers a broad area of application of optimization methods and different approaches to optimization. With the knowledge gained in this course, students will be able to review the role and importance of optimization for the decision-making process and the benefits that can be achieved with its application. They will also be able to independently apply the methods and techniques of optimization.

Mathematical expression of economic phenomena and processes; Introduction to linear programming; Simplex method – graphical method; Simplex method – simplex table; Matrix procedure of the simplex method; Transport models and methods; Models and methods of distribution; Integer linear programming; Fractional linear programming; Game theory; Intersectoral models; Network programming; Inventory models.

In addition to traditional forms of teaching, the emphasis is put on solving case studies and using modern software tools.

Colloquium I (0-20 points); Colloquium II (0-20 points); Final exam (0-50 points); Attendance (2point); Class activities (seminar papers, discussions, case studies) (0-8 points)

Petrić, J. (1979). Nonlinear programming. Belgrade: Faculty of Organizational Sciences; Stanić, S., Račić, G. (2005). Mathematical analysis of economic problems. Banja Luka: Faculty of Economics; Stanić, S., Račić, G. (2004). Mathematical economics. Banja Luka: Faculty of Economics; Stanojević, R. (1966). Linear programming. Belgrade: Research Institute of Industrial Economics; Stanojević, R. (1996). Application of the simplex method. Belgrade: University "Braća Karić"; Stanojević, R. (1998). Intersectoral models. Belgrade: Faculty of Economics; Stanojević, R. (2004). Integer Linear Programming. Banja Luka. Faculty of Economics; Tourki, M., Backović, M. (2009). Mathematical models and methods in economics. Belgrade: Faculty of Economics