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43 Cards in this Set
 Front
 Back
The process of identifying identifying a difference between the actual and the desired state of affairs and then taking actions to resolve

Problem Solving


The term generally assaciated with the first five steps of the problem solving process

Decision Making


Problems in which the objective is to find the best solution with respect to one criterion

Singlecriterion decision problems


Problems that involve more than one criterion

Multicriterion decision problems


First step in problemsolving process

Identify and define


Second step in problemsolving process

Determine set of alternative problems


Third step in problemsolving process

Determine criterion used to evaluate alternative


Fourth step in problemsolving process

Evaluate alternatives


Fifth step in problemsolving process

Choose alternative


Sixth step in problemsolving process

Implement alternative


Seventh step in problemsolving process

Evaluate results


The result of choosing "best" alternative

Decision


Analysis based primarily on manager's judgement

Qualitative analysis


Analysis based primarily on facts or data associated with the problem and develop mathematical expressions

Quantitative analysis


Problem is complex
Problem is important 
Reason fo using Quantitative analysis


Problem is new
Problem is repetitive 
Reason fo using Quantitative analysis


Representations of real objects

Models


Physical replicas

Iconic models


Physical models that do no have the same physical appearance as the object being modeled

Analog models


Representation of a problem by a system of symbols and mathmatical relationships or expressions

Mathematical models


Require less time
Less expensive Reduce risks 
Reasons for experimenting with models


Restrictions on managerial problem

Constraints


Mathematical expression that defines the quantity to be maximized or minimized

Objective function


Inputs such as environmental factors that can affect both the objective function and the constraints

Uncontrollable inputs


Inputs that can be determined by the decision maker

Controllable inputs


Another name for controllable inputs

Decision variables


A model in which all uncontrollable inputs are known and cannot vary

Deterministic model


A model in which at least one uncontrollable inputs is subject to variation

Stochastic model


Another name for Stochastic model
A model in which at least one uncontrollable inputs is subject to variation 
Probabilistic model


How many uncontrollable inputs or data must be specified before we can analyze the model and make recommendations?

All


Identifing the values for unknown variables

Data preparation


The specific decisionvariable values or values that provide the "best" output

Optimal solution


What you call a decision alternative that does not satisfy one or more of the model constraints

Infeasible


What you call a decision alternative that satisfies all model constraints

Feasible


Testing various decision alternative one after another

Trialanderror


Reasons trialanerror isn't best procedure

Inefficient and time


Why a simpler, less accurate, model may be used

Easier solution


Reports for the decision maker

Managerial reports


Portion of the total cost that does not depend on production volume

Fixed cost


Portion of the total cost dependant on production volume

Variable costs


Rate of change of the total cost with respect to production volume (cost increase associated with oneunit increase in production)

Marginal cost


Rate of chagne of total revenue with respect to sales volume (increase in revenue resulting from oneunit increase in sales volume)

Marginal revenue


Volume that results in total revenue equalling to total cost

Breakeven point
