70-462 Uncertainty and Risk Modeling
9 units, Carnegie Mellon University
This course takes the perspective of the consultant whose job is to analyze existing or potential business processes and provide recommendations for managerial decisionmaking. Recognizing that most businesses are subject to high levels of variability, risk and uncertainty, it will adopt a stochastic approach to characterize the behavior of business systems and processes, and explore the effects of alternative decisions in this context. Two modeling methodologies will be covered i stochastic modeling, and ii stochastic simulation. Examples are drawn from different managerial domains, such as supply chain management, risk management, marketing, and project management. The lectures, homework assignments, exam and term project will focus on modeling, computational, and analytical skills. Computational implementations will be done in Excel using the Risk addin during the first half of the course to build simple simulation models and the Arena software during the second half of the course to build more complex models based on discreteevent simulation. This course may use thirdparty course material that is not available for individual purchase from the publisher. If so, the thirdparty course material will be secured and provided by the Tepper School to students enrolled in the course, and students enrolled in the course will be required to pay to the University the associated additional course materials fee for the thirdparty course material provided. The amount of the course materials fee is dependent on the Universitys cost of the particular materials provided, and typically ranges from 13 to 75.
Prerequisites: 36-200 or 36-201 or 70-207 or 36-220 or 36-225 or 36-207
Offered: Spring 2027
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