Please note! Course description is confirmed for two academic years, which means that in general, e.g. Learning outcomes, assessment methods and key content stays unchanged. However, via course syllabus, it is possible to specify or change the course execution in each realization of the course, such as how the contact sessions are organized, assessment methods weighted or materials used.


Management Science deals with the use of analytical models to help make better business decisions. This course focuses on models for supporting decision making under uncertainty, risk and multiple objectives. After the course the student can (i) recognize the types of real-life business problems where use of the models brings added value, (ii) interpret results of these models to derive defensible decision recommendations, and (iii) build and solve these models using a computer to support business decision making.

Credits: 6

Schedule: 11.01.2021 - 22.02.2021

Teacher in charge (valid 01.08.2020-31.07.2022): Eeva Vilkkumaa

Teacher in charge (applies in this implementation): Eeva Vilkkumaa

Contact information for the course (valid 14.12.2020-21.12.2112):

Prof. Eeva Vilkkumaa,

Office hours: after lectures of by appointment.

CEFR level (applies in this implementation):

Language of instruction and studies (valid 01.08.2020-31.07.2022):

Teaching language: English

Languages of study attainment: English


  • Valid 01.08.2020-31.07.2022:

    Monte Carlo simulation, decision trees, value of information, expected utility theory, risk attitudes, stochastic dominance, risk measures, multi-attribute utility/value theory, modelling uncertainties and multiple objectives in optimization problems.

  • Applies in this implementation:

    This course focuses on management science methods that support decision making under uncertainty and/or multiple objectives (see schedule for detailed list of topics). Some required background concepts from applied probability are also covered.

Assessment Methods and Criteria
  • Valid 01.08.2020-31.07.2022:

    Assignments 50%, exam 50%.

  • Applies in this implementation:

    Final points, which consist of exam points (50%) and assignment points (50%), determine the final grade:  >50p ->1; >60p -> 2; >70p -> 3; >80p -> 4; >90p -> 5. These bounds maybe relaxed during final grading. Moreover, at least half of the exam points are required to pass. 

    There are three assignments with deadlines during the course. Each assignment consists of 4-12 problems or cases, which usually require the use of spreadsheets or other mathematical software to solve.

    Assignments are individual work. You may discuss the problems with your colleagues, but you must return individual answers. Returning a copied answer or solution is strictly forbidden. Remember that in the exam you will need to individually solve equivalent problems.

  • Valid 01.08.2020-31.07.2022:

    Contact teaching 36h, individual work 121h, exam 3h.

  • Applies in this implementation:

    Contact teaching includes lectures, assignment demonstrations and assignment feedback.

    Individual work includes class preparation (12h), work on the assignments (101h) and preparing for the exam (8h).


Study Material
  • Valid 01.08.2020-31.07.2022:

    Lecture slides, articles, assignments, computer implementations of mathematical models, and the textbook (An Introduction to Management Science by Anderson et al., 2014, ISBN Code: 978-1-111-82361-0).

  • Applies in this implementation:

    The textbook can be very helpful but is not strictly required for passing the course.

Substitutes for Courses
  • Valid 01.08.2020-31.07.2022:

    Substitutes course 30E02000 Business Decisions 2

  • Valid 01.08.2020-31.07.2022:

    Courses 30A01100 Taulukkolaskenta ja analytiikka (Spreadsheet computation and analytics), 30A02000 Tilastotieteen perusteet (Introduction to statistics), and 30A03000 Talousmatematiikan perusteet (Introduction to business mathematics). Courses 30C00600 Tilastotieteen jatkokurssi (Continuation course in statistics) and 27C01000 Business Analytics 1 are highly recommended. Equivalent studies in mathematics/statistics from another school/university are also acceptable.

Registration for Courses
  • Valid 01.08.2020-31.07.2022:

    Via WebOodi

  • Applies in this implementation:

    The course will be implemented fully online. Consequently, the limit on the maximum number of students is not strict. 

SDG: Sustainable Development Goals

    8 Decent Work and Economic Growth

    9 Industry, Innovation and Infrastructure


Further Information
  • Valid 01.08.2020-31.07.2022:

    A maximum of 80 students will be admitted to the course. Priority will be given to Aalto ISM MSc students and students with strong analytical skills (see prerequisites).

  • Applies in this implementation:

    The course will be implemented fully online. Consequently, the limit on the maximum number of students is not strict. 

Details on the schedule
  • Applies in this implementation:

    There are two sessions per week both lasting 3 hours.

    In each session, about 1 hour is dedicated to working on the assignments with the teachers present to offer guidance.