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### 43 Cards in this Set

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 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 Single-criterion decision problems Problems that involve more than one criterion Multicriterion decision problems First step in problem-solving process Identify and define Second step in problem-solving process Determine set of alternative problems Third step in problem-solving process Determine criterion used to evaluate alternative Fourth step in problem-solving process Evaluate alternatives Fifth step in problem-solving process Choose alternative Sixth step in problem-solving process Implement alternative Seventh step in problem-solving 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 decision-variable 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 Trial-and-error Reasons trial-an-error 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 one-unit increase in production) Marginal cost Rate of chagne of total revenue with respect to sales volume (increase in revenue resulting from one-unit increase in sales volume) Marginal revenue Volume that results in total revenue equalling to total cost Breakeven point