Podcast
Questions and Answers
In decision making, what two main types of problems may a manager face?
In decision making, what two main types of problems may a manager face?
Simple or complex
What are the two main approaches to decision making?
What are the two main approaches to decision making?
- Analytical and intuitive
- Subjective and objective
- Qualitative and quantitative (correct)
- Rational and emotional
Which of the following situations might a manager choose to use qualitative evaluation?
Which of the following situations might a manager choose to use qualitative evaluation?
- The problem requires a lot of research and data analysis
- The problem is very complex and unfamiliar
- The costs involved are significant and require careful consideration
- A quick decision is needed, and the problem is fairly straightforward (correct)
Quantitative evaluation utilizes any technique that can be classified as logical and analytical.
Quantitative evaluation utilizes any technique that can be classified as logical and analytical.
Which of the following is NOT a type of inventory model?
Which of the following is NOT a type of inventory model?
What is the goal of queuing theory?
What is the goal of queuing theory?
What is the purpose of Network Models in decision-making?
What is the purpose of Network Models in decision-making?
The ______ technique helps managers schedule, monitor, and control large and complex projects.
The ______ technique helps managers schedule, monitor, and control large and complex projects.
Which time estimate refers to the time an activity might be completed under ideal conditions?
Which time estimate refers to the time an activity might be completed under ideal conditions?
The Critical Path Method uses a single time factor for each activity to determine the most efficient path to complete a project.
The Critical Path Method uses a single time factor for each activity to determine the most efficient path to complete a project.
What is the purpose of forecasting and predicting?
What is the purpose of forecasting and predicting?
What are the two types of regression analysis?
What are the two types of regression analysis?
What is the main purpose of simulation in decision-making?
What is the main purpose of simulation in decision-making?
What is the objective of linear programming?
What is the objective of linear programming?
Sampling theory uses statistical methods to select samples from a population for various purposes, such as quality control and market research.
Sampling theory uses statistical methods to select samples from a population for various purposes, such as quality control and market research.
What is the goal of Statistical Decision Theory?
What is the goal of Statistical Decision Theory?
Flashcards
Qualitative Evaluation
Qualitative Evaluation
Using intuition and subjective judgment to evaluate alternatives.
Quantitative Evaluation
Quantitative Evaluation
Using rational, analytical techniques to evaluate alternatives.
Economic Order Quantity (EOQ)
Economic Order Quantity (EOQ)
The optimal order size to minimize inventory costs.
Production Order Quantity
Production Order Quantity
Signup and view all the flashcards
Back Order Inventory
Back Order Inventory
Signup and view all the flashcards
Quantity Discount
Quantity Discount
Signup and view all the flashcards
Queuing Theory
Queuing Theory
Signup and view all the flashcards
PERT
PERT
Signup and view all the flashcards
Optimistic Time Estimate
Optimistic Time Estimate
Signup and view all the flashcards
Most Likely Time Estimate
Most Likely Time Estimate
Signup and view all the flashcards
Pessimistic Time Estimate
Pessimistic Time Estimate
Signup and view all the flashcards
CPM
CPM
Signup and view all the flashcards
Forecasting
Forecasting
Signup and view all the flashcards
Regression Analysis
Regression Analysis
Signup and view all the flashcards
Simulation
Simulation
Signup and view all the flashcards
Linear Programming
Linear Programming
Signup and view all the flashcards
Sampling Theory
Sampling Theory
Signup and view all the flashcards
Statistical Decision Theory
Statistical Decision Theory
Signup and view all the flashcards
Study Notes
Decision Making Approaches
- Managers face problems that can be simple or complex.
- Qualitative evaluation uses intuition and subjective judgment.
- This approach is useful when problems are simple and familiar.
- Costs are not significant.
- Immediate decisions are needed.
- Quantitative evaluation uses various techniques that are considered rational and analytical.
Quantitative Techniques in Decision Making
- Inventory Models
- Economic Order Quantity (EOQ) Model: Calculates the order quantity to minimize yearly costs of placing orders and holding inventory.
- Production Order Quantity Model: An economic order quantity technique for production orders.
- Back Order Inventory Model: An inventory model used for planned shortages.
- Quantity Discount Model: An inventory model used to minimize costs when suppliers offer quantity discounts.
- Queuing Theory
- Describes how to determine the number of service units needed to minimize customer wait times and service costs.
- Network Models
- Large complex tasks are broken into manageable segments.
- The two most prominent models are mentioned. (details omitted)
- Program Evaluation and Review Technique (PERT)
- Used to schedule, monitor, and control large, complex projects.
- PERT times are estimated completion times for each task or activity.
- Optimistic Time Estimate: Best-case completion time
- Most Likely Time Estimate: Normal Completion Time
- Pessimistic Time Estimate: Worst-case completion time
- Critical Path Method (CPM): Uses one time factor per activity to help schedule, monitor, and control projects. Identifies the critical path (the longest potential path to complete a project)
- Forecasting
- Managers must consider future implications of decisions.
- Regression Analysis
- A forecasting method used to examine relationships between variables.
- Can be simple or multiple regression depending on the number of independent variables.
- Simulation
- A model used to represent reality to arrive at conclusions about real-life problems.
- A sophisticated tool that allows decision-makers to develop mathematical models of the system under consideration.
- Linear Programming
- A quantitative technique used to find the optimum solution within constraints imposed on a decision.
- Sampling Theory
- A quantitative technique using samples from populations to statistically determine useful data for processes such as quality control and research.
- Statistical Decision Theory
- A rational method to analyze and solve problems with limited information about the decision environment.
Studying That Suits You
Use AI to generate personalized quizzes and flashcards to suit your learning preferences.
Related Documents
Description
Explore various decision-making approaches used by managers, focusing on qualitative and quantitative evaluations. Learn about quantitative techniques such as inventory models and queuing theory, which help optimize decision-making in simple and complex scenarios.
