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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
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
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
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
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?
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
What you call a decision alternative that satisfies all model constraints
Testing various decision alternative one after another
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