P A R T I V QUANTITATIVE MODULES Quantitative Module Decision-Making Tools A Module Outline THE DECISION PROCESS IN OPERATIONS FUNDAMENTALS OF DECISION MAKING DECISION TABLES TYPES OF DECISION-MAKING ENVIRONMENTS Decision Making Under Uncertainty Decision Making Under Risk Decision Making Under Certainty Expected Value of Perfect Information (EVPI) DECISION TREES A More Complex Decision Tree Using Decision Trees in Ethical Decision Making SUMMARY KEY TERMS USING SOFTWARE FOR DECISION
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Job True/False Questions THE DECISION-MAKING PROCESS 1. Problem identification is purely objective. (False; moderate; p. 157) 2. The second step in the decision-making process is identifying a problem. (False; easy; p. 158) 3. A decision criterion defines what is relevant in a decision. (True; moderate; p. 158) 4. The fourth step of the decision-making process requires the decision maker to list viable alternatives that could resolve the problem. (True; easy; p. 159) 5. Once the alternatives
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value SMALL 18000 75000 75000 60750 MEDIUM -25000 140000 150000 102250 LARGE -60000 125000 220000 112000 c. Which alternative is best‚ according to each of the fol- lowing decision criterion? Maximin SMALL size. This is because the min of all 3 options is 18000‚ -25000‚ -60000. The maximum out of these is 18000 Maximax LARGE size. This is because the max of all 3 options is 75000‚ 150000‚ 220000. The maximum out of these is 220000 Minimax regret MEDIUM size.
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Review Assessment: Oefententamen Time Elapsed 1 hours‚ 2 minutes‚ and 57 seconds out of 1 hours and 30 minutes allowed. Instructions Question 1 A process involves transforming inputs into outputs. Selected Answer: Question 2 Labor productivity is an index of the output per person or hours worked. Selected Answer: Question 3 True True 1 out of 1 points 1 out of 1 points 1 out of 1 points As a functional area of a business‚ Operations translates materials and services into outputs. Selected
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Chapter 15: Decisions Under Risk and Uncertainty Answers to Applied Problems 1. a. At the maximax rule the firm should operate plants in US‚ Mexico‚ Canada b. At the maximin rule the firm should operate plants in US only c. The potential regret matrix is: OINC Passes OINC Fails OINC Stalls US only 10 million 0 2 million US and Mexico 5 million 3 million 2.5 million US‚ Mexico‚ Canada 0 5 million 0 And the maximum potential regrets are: US only 10 million US and Mexico
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Submitted by: dsjfhsuhdf May 8‚ 2012 I Introduction to Decision Making Decision making can be regarded as the mental processes (cognitive process) resulting in the selection of a course of action among several alternative scenarios. Every decision making process produces a final choice. The output can be an action or an opinion of choice. Moreover‚ most complex managerial decisions are made with some uncertainty. Managers authorized substantial capital investments with less than complete
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Decision Theory Models The Six Steps in Decision Theory * Clearly define the problem at hand. * List the possible alternatives. * Identify the possible outcomes or states of nature. * List the payoff or profit of each combination of alternatives and outcomes. * Select one of the mathematical decision theory models. * Apply the model and make your decision. Case Here we use the Thompson Lumber Company case as an example to illustrate these decision theory steps. John Thompson
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* Question 1 2 out of 2 points | | | In general‚ an increase in price increases the break even point if all costs are held constant. Answer | | | | | Selected Answer: | False | Correct Answer: | False | | | | | * Question 2 0 out of 2 points | | | Fixed cost is the difference between total cost and total variable cost. Answer | | | | | Selected Answer: | False | Correct Answer: | True | | | | | * Question 3 0 out of 2 points | |
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Introduction to Management Science: Quantitative Methods: 50 Multiple Choice Questions Question 1 In a balanced transportation model where supply equals demand‚ a. all constraints are equalities b. none of the constraints are equalities c. all constraints are inequalities d. none of the constraints are inequalities Question 2 In a transportation problem‚ items are allocated from sources to destinations a. at a maximum cost b. at a minimum cost c. at a minimum profit d. at
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what decison criterion should he use? Maximax c) what alternative is best He should choose Sub100‚ since it has the best possible outcome. 2) although Ken (above) is the principal owner‚ his bother bob is credit with making the company a sucess. Bob is vice president of fincance. Bob attributes his sucess to hsi pessimistic attitude about business and oil industry. Give the information from the previous problem is it likely bob will arive at a different decision? What deicison criterion should bob
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