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What are the 5 steps in the process of decision making?
 Identify and define the problem
 Determine the set of alternative solutions
 Determine the criteria for evaluating alternatives
 Evaluate the alternatives
 Choose an alternative (make a decision)

How many steps are there in the problem solving process?
7

What are the last 2 steps in the problem solving process?
 Implement the selected alternative
 Evaluate the results

The body of knowledge involving quantitative approaches to decision making is referred to as ...
 Management science
 Operations research
 Decision science

In the decision making process, what steps fall under structuring the problem?
 Define the problem
 Identify the alternatives
 Determine the criteria

In the decision making process, what steps fall under analyzing the problem?
 Identify the alternatives
 Choose an alternative

What are single criterion decision problems?
Problems in which the objective is to find the best solution with respect to one criterion.

What are multicriteria decision problems?
Problems that involve more than one criterion

What is qualitative analysis?
 Unreliable analysis based on manager's judgement and experience
 Is more of an art than a science

What is quantitative analysis?
 When analysts concentrate on the quantitative facts or data associated with the problem
 Using mathematical expressions that describe the objectives, constraints , and other relationships that exist in the problem

What are the potential reasons for a quantitative analysis approach to decision making?
 The problem is complex
 The problem is very important (irreversible investments)
 The problem is new
 The problem is repetitive

What are models representative of?
Real objects or situations

What are the three forms of models?
 Iconic models
 Analog models
 Mathematical models

What are iconic models?
Physical replicas (scalar representations) of real objects (smaller version)

What are analog models?
Physical in form, but do not physically resemble the object being modeled

What are mathematical models?
Represent real world problems through a system of mathematical formulas and expressions based on key assumptions, estimates, or statistical anlysises

Why do people experiment with models?
 Requires less time
 Is less expensive
 Involves less risk

What happens the more closely the model represents the real situation?
The more accurate the conclusions and predictions will be

What is the objective function?
A mathematical expression that describes the problem's objective, such as maximizing profit or minimizing cost

What are constraints?
A set of restrictions or limitations, such as production capacities

What are uncontrollable inputs?
 Environmental factors that are not under the control of the decision maker
 Consumers determine the market

What are decision variables?
Controllable inputs; decision alternatives specified by the decision maker, such as the number of units of a product to produce

What is a deterministic model?
If all uncontrollable inputs to the model are known and cannot vary

What is the stochastic (or probabilistic model)?
 If any uncontrollable are uncertain and subject to variation
 These models are often more difficult to analyze

What are cost/benefit considerations?
They must be made in selecting an appropriate mathematical model

What is the optimal solution?
The alternatives the provide the best output

What is an infeasible solution?
When an alternative does not satisfy all of the model constraints

What is a feasible solution?
When an alternative satisfies all of the model constraints

