In the process of producing products and selling them to realize profits, managers encounter situations in which decisions have to be made to maximize these profits while minimizing costs. Decision support systems help…
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Decisions are required when managers handle a situation with two or more alternative courses of action. To select the right course of action, the manager must analyze all the relevant information available. Information with no monetary figure requires a qualitative decision. Quantitative decisions, like in this scenario, are accompanied by measurable information mostly in financial figures. A quantitative decision problem is made up of six components.
Decision problems involving two or more variables are a common occurrence when managing a business. A high number of variables increase the level of complexity of the decision to be made. All variables have to be considered when making such decisions. There are methods used to analyze a decision problem. Common decision problem analysis methods include the simplex method and cost- volume- profit technique. Computer programs have also been developed to aid in the decision-making. The computer decision support software includes DecisionPro and Microsoft Excel (Brandimarte, 2012).
£12 per unit. Product 2 has a profit margin of £16 per unit. The setup cost for manufacturing facilities required to produce the two products also vary. Product 1 production facility installation cost is £45000 while for product 2 the setup cost for its production facility is £76000. The company has two factories capable of producing the two products. The rate of production of the two factories varies. Factory 1 can produce 52 units of product 1 per hour and 38 units of product 2 per hour. Factory 2 can produce 42 units of product 1 per hour and 23 units of product 2 per hour. Factory 1 has 480 hours available for production of the two products. Factory 2 has 720 hours available for production of the two products. The aim of this solution is to optimize the profits the company will derive from producing the two products with the limited resources the company has. The constraints, in
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For instance, the first support tool available to managers is the access to data warehouse where organisational information is available in the form of financial reports, memos, speeches, plans, proposals, discussions, feedbacks, reviews, press releases, marketing research findings etc.
Interestingly, these competitive advantages are enjoyed best by organizations with sound decision-making processes, techniques, and tools. Decision Support Systems (DSSs) are among the most relied on strategies used by organizations to make effective decisions.
Typically, a decision support system will comprise of set of several integrated computer programs to collect, analyze and process information obtained through the daily operations of businesses, and use this information to inform management decisions. There is continuous development of such programs so that businesses can obtain modern, fast and up to date packages for use in their daily operation.
The hotel has opened a new branch at the south coast. It requires a system that allows the CEO to easily access and monitor the activities taking place in the three hotels at the same time. The current information system of the organization does not effectively support the decision-making processes of the company.
Enterprise systems can actually be included in both categories because they encompass both several functions and types f support.
Some f the earliest applications for supporting management decision making were management information systems (MIS). MIS primarily provide information on the firm's performance to help mangers in monitoring and controlling the business.
The report aims to bring out the advantages and unique features of the system and to provide a deep analysis on the techniques that were used. The user interface that is designed is explained clearly with the concepts and logistics that were used to design and create it.
Simulation will help management to test their hypothesis and predict possible alternatives. Decision Analysis will help management to analyze and evaluate strategic change and predict possible threats and weaknesses. In accepting change as a constant, marketing management recognizes that customers and consumers change; markets change continuously; and the products and services, the marketing methods, and even the very nature of a company must change to meet them.
Despite in operation since the earliest times, the pace with which human society is growing today was never witnessed in the past. The entire credit for such a rapid pace goes to a number of factors, especially the evolution of science and technology. As a result of the evolution of science and the information communication technology, the way of doing the business has also been changed significantly.
The table below shows relevant manufacturing information:
The decision problem that the manager is facing lies on how to get the optimal amounts or measures of production of each type of shirt in order to achieve the highest profits. In
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