FORS40 Workshop in Lappeenranta in August 2013 – See CFP

The FORS40 workshop is organized to celebrate the 40 years of the Finnish Operations Research Society (FORS) and it brings together the Finnish operational research community with international participants. The FORS40 workshop takes place at Lappeenranta University of Technology, situated in South-Eastern Finland and located on the lake Saimaa. Working language of the conference is English.

FORS40 Workshop website can be found from here.

Download the Call For Papers from this link!

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New Editorial at on MC simulation and pay-off method

See the new article at here

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Bremen Workshop: Slides and info

A joint real options workshop by the University of Bremen and Lappeenranta University of Technology was held on 18th of October in Bremen at the WiWi building (see picture below) in the University of Bremen campus.

The workshop featured four presentations on different aspects regarding strategic real options – concepts, theories, and application.

First, a talk by Prof. Jörg Freiling (U. Bremen) discussed theoretical frameworks for addressing strategic real options and went into the theoretical background of strategic real option research. Download presentation in PDF.

The second talk by Prof. Kalevi Kyläheiko (Lappeenranta U. of Tech.) discussed different types of uncertainties and how they relate to strategic real options and the capabilities of the firm. Download presentation in PDF.

The third talk by Prof. Mikael Collan (Lappeenranta U. of Tech.) discussed the pay-off method and how we can value strategic real options with the pay-off method for real option valuation. Download presentation in PDF.

Finally, Prof. Ellen Roemer (Hochschule Ruhr West) presented on creation and active management of real options (see picture below). Download presentation in PDF.

Find the program of the workshop from the earlier post – here.


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Workshop on Strategic Real Options in Bremen, October 18th, 2012

Workshop on: Strategic Real Options -Concepts, Theories, Applications will take place in Bremen on October 18th. This is a joint research workshop of the University of Bremen and the Lappeenranta University of Technology.  The workshop is chaired by Prof. Jörg Freiling (U. Bremen).

As far as I understand the workshop is free for everyone to participate, so welcome if you are in the Bremen area! See the workshop flyer below for further information about the registration.

Workshop on: Strategic Real Options – Concepts, Theories, Applications, Bremen, Oct. 18., 2012

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ODAM 2013 first announcement Call for Papers

ODAM 2013 – 1st Announcement

Dear colleagues,

We warmly invite you to ODAM 2013 – Olomoucian Days of Applied Mathematics, to be held on June 12-14, 2013, in Olomouc, Czech Republic.

The conference aims to be a forum for presenting new developments and applications of fuzzy sets, group and multiple criteria decision making methods, numerical mathematics, probability, statistics, and other branches of applied mathematics. This meeting will be organized in sessions with invited and contributed talks.

Selected papers will be published in Acta Univ. Palacki. Olomuc (see the journal web page Other possibilities of publishing conference paper may arise.

More details will become available at after October 31, when the new conference web pages will be launched.

The conference is held under the project “Streamlining the Applied Mathematics Studies at Faculty of Science of Palacky University in Olomouc” (CZ.1.07/2.2.00/15.0243). The project is supported by the European Social Fund and the state budget of the Czech Republic. Thanks to this there will be no conference fee.

Kindly forward this email to your colleagues or students who may be interested.

ODAM 2013 Organizing Committee

[email protected]



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Prof. Fedrizzi decorated

Professori Fedrizzille suomalainen kunniamerkki

Syyskuussa Lappeenrannassa vierailevana professorina toiminut Mario Fedrizzi vastaanotti eilen Suomen Leijonan ensimmäisen luokan ritarimerkin Roomassa suurlähettiläs Petri Tuomi-Nikulalta.

Fedrizzin tutkimus sivuaa reaalioptiolaskentaa ja reaalioptioiden käyttöä. Professori Fedrizzi on toiminut yhteistyössä suomalaisten yliopistojen kanssa jo yli kaksi vuosikymmentä. Yhteistyö alkoi 80-luvulla Åbo Akademin kanssa ja on sittemmin laajentunut ja käsittää nykyään myös Lappeenrannan Teknillisen Yliopiston. Fedrizzi vierailee Suomessa vuosittain.

Feddrizzin kautta solmittujen suhteiden johdosta Suomessa on käynyt mm. vaihto-opiskelijoina kymmeniä Italialaisia opiskelijoita ja kymmenet suomalaiset opiskelijat ovat käyneet Italiassa vaihdossa. Hän on myös osallistunut lukioiden välisen yhteistyön luomiseen Italian ja Suomen välillä.

Professor Fedrizzi becomes a Knight of the Order of the Finnish Lion

Professor Mario Fedrizzi who visited the LUT (Lappeenranta University of Technology) in September received yesterday the Cross of the Knight, First Class, of the Order of the Lion of Finland from the Finnish ambassador to Italy Petri Tuomi-Nikula in Rome.

Professor Fedrizzi’s research has also included elements of real option valuation and using real options thinking in framing different problems. Professor Fedrizzi has worked in collaboration with Finnish universities for more than twenty years. The collaboration begun in the 1980’s with Åbo Akademi University and has grown ever since. Professor Fedrizzi and his research group are today also working in collaboration with the LUT.

In addition to research collaboration the exchange programs set up by professor Fedrizzi between Finnish universities and University of Trento have so far enabled tens of italian students to come to Finland and tens of Finnish students to make a visit to Trento.



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ICAOR 2012 proceedings available on-line

The proceedings of the 4th International Conference on Applied Operational Research are available on-line. Follow this link.

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EURO XXV Stream on Fuzzy Sets and Soft Computing

Within the XXV European Conference on Operational Research (EURO) a stream titled: Fuzzy Sets and Soft Computing was held. The stream consisted of four sessions of four presented papers each. The paper topics ranged from logistics optimization to asset valuation to personnel evaluation systems and covered many different topics. The stream was organized by Prof. Mikael Collan from Lappeenranta University of Technology, in Finland. This article presents the stream in more detail.

The conference was held in Vilnius, Lithuania and the venue was for the stream was the Radisson SAS hotel in the center of the city, visible in the photo below (tower building to the left – photo by Mikael Collan)

The first session started 08.30 on the 21st floor of the Radissons SAS building. The organization was that business class hotel rooms had been converted to small meeting rooms with space for about 20-25 participants. A 32 inch flat screen TV acted as the projector for the sessions. There are three elevators in the hotel and the maximum capacity of the 21st floor rooms (8) was about 200 participants. This put pressure on the elevators and getting to the rooms proved to be difficult. By putting the presentations on the top floor the organizers had effectively created a bottle neck.

Picture from the 21st floor sessions (photo by Jan Stoklasa)

The +30 degree weather and hardly functioning air conditioning system created their own spice in the first two sessions of the stream that were held on the 21st floor. Gladly the all the sessions of the stream were well attended, all with more than 15 participants.

The first session consisted of four papers and was chaired by Kaj-Mikael Björk from Arcada University of Applied Sciences in Helsinki.

Kaj-Mikael Björk Presenting the first paper in the session (photo Mikael Collan)

Unfortunately no photos were available from the presentation of Magnus Westerlund, Martin Gavalec, and Jaroslav Ramik.

The second session was chaired by Prof. Jana Talasova from the Palacky University, Olomouc, Czech Republic


Prof. Mario Fedrizzi presenting the first paper of the second session (photo Jan Stoklasa).

Prof.Jana Talasova presenting. (photo Mikael Collan)

Jan Stoklasa presenting (photo Mikael Collan)

Helena Brozova Presenting, Jaroslav Ramik in the front row (photo Jan Stoklasa)

The third session was held in the second floor of the building, in a real conference room with an overhead video cannon (and working AC). The session was chaired by Mikael Collan from Lappeenranta University of Technology, Finland

Reinhard Viertl presenting (photo taken by Xiaolu Wang)

Nezmi Sener presenting (photo Mikael Collan). Nezmi is a Ph.D. student from Turkey, the EURO-conference was his first appearance in a conference abroad.

Mikael Collan presenting (photo Jan Stoklasa)

Xiaolu Wang in the middle sitting on the floor, but not presenting (Photo by Jan Stoklasa)

The fourth session was chaired by Prof. Mario Fedrizzi from the University of Trento, Italy.

Matteo Brunelli presenting (photo Jan Stoklasa)

Svetlana Asmuss presenting (photo Mikael Collan)

The third and the fourth presentation were integrated into one longer presentation about sociomapping (direct and indirect).

Radvan Babouh presenting (photo Mikael Collan)

Cyril Höschl presenting (photo Mikael Collan)

All in all the stream was composed of high quality presentations on interesting variable topics.

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New book on the pay-off method out!

A new book on the pay-off method by Mikael Collan called: “The Pay-Off Method: Re-Inventing Investment Analysis – With numerical application examples from different industries.” is out and available at the Createspace on-line store ! The book will be soon be available also on and Amazon’s European on-line book stores.

This is the first book published on the pay-off method and on how it can be used in supporting investment decision-making. It is a managerial book that is good for teaching purposes as well. It is not an academically written work.

The description of the book from the publisher’s site goes as follows:

“Businesses and managers everywhere are finding out that using the classical investment analysis methods is not enough to cover their need for smart decision-support for high risk, hard to estimate investments under vague information, such as investments into R&D, IPR, and any other strategic projects and assets.

This book introduces the pay-off method and shows how the method can enhance investment analysis and decision-support in a profound way. The pay-off method and a selection of tools within the pay-off method arsenal, including real option valuation, are simple to use, transparent, no-nonsense, and intuitive to understand.

This book explains the pay-off method in detail and shows with many numerical easy-to-follow examples how the method can be applied in real-world decision-making in different industries. This book shows also how decision-making can be enhanced by visualizing imprecision and how real option valuation can be performed simply. All method presented are easily implementable with the most commonly used spread-sheet software.

The pay-off method is a clear continuation to where the “old” investment analysis methods usually leave uss off and gives you a chance to better plan and to understand your investments. After having read this book you will never be the same decision-maker again, but you will know what information to require for better investment decision-making.”

Link to the book page at

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Course on “Real options and financial engineering in energy markets” at Aalto U. in October 2012

The doctoral programme organizes an intensive course “Real options and financial engineering in energy markets” (3 cr) 29.10.-2.11.2012. The lectures are given by Dr Afzal Siddiqui (Department of Statistical Science, University College London), . The course is organized at Aalto University Otaniemi campus (i.e., former TKK).

Visit the course web site for additional information. To estimate the number of participants, please sign up for the course in Oodi at your earliest convenience. Students from outside Aalto can register by contacting the course assistant Eeva Vilkkumaa (

The course is free-of-charge and open to everybody interested in the subject, so please distribute information about this course. A limited amount of support is available for foreign doctoral students’ accommodation in Helsinki for the period of the course; foreign students are asked to email an informal application to the doctoral programme coordinator Antti Punkka ( at their earliest convenience. Travel support is not provided.

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