Life-Cycle Decision Making for Complex Projects under Uncertainty

Project No.
1504912
PI Name
Kyung Min
Institution
Iowa State University



Abstract 1

Life-Cycle Decision Making for Complex Projects under Uncertainty

Presentation Type
Poster
Team
Min Jackman Zugg ISU


Need

Engineering projects are becoming more complex ヨ physical science-wise as well as otherwise.
Engineering students need to know how best to value them and make correct economic decisions over its life-cylce.

Goals

Facilitate the engineering students to become better decision makers in this critical area.
Hierarchical teaching and learning.

Approach

A module in an introductory course for analytical concepts followed by an advanced course for experiential learning. PI, Co-PI, RAメs, TAメs, 650 students annually.

Outcomes

Engineering students gain relevant knowledge and skills, and attain a higher level of insights and intuition involving economic decisions on complex projects.
Teaching materials and visualization aids.
Dissemination

Broader Impacts

Potential for upgrading the engineering economics education across the USA on the complex project decisions under uncertainties.
650 students annually are involved in the teaching and learning at ISU alone.
Journals, Conference Presentations, Web Links.

Unexpected Challenges

A little bit of in-depth understanding of stochastic calculus would be helpful.
We are looking into visualization aids for stochastic calculus.

Citations

Substantial amount of teaching materials are coming from the following two manuscripts.

1. Kucuksayacigil, F. and K. J. Min, 'Expansion Planning for Transmission Network under Demand Uncertainty: A Real Options Framework,' under review by The Engineering Economist, 2015.

2. Wang, C. and K. J. Min, 'Transition from Coal Power to Natural Gas Power under CO2 Consideration: A Real Options Approach,' under review by The Engineering Economist, 2015.