946-349/457 DSSIntroduction to Decision Modelling1What is a Decision?A choice made between alternative courses of action in a situation of uncertainty.2Decisions EverywherePersonal DecisionsWhat to eat?What movie to watch?Whether or not to go to graduate school?Business DecisionsHow many uantity of !roduct A to !roduce?Where to advertise?3Decision "a#ing$ %ntroduction and De&nitions Decision making'he !rocess of choosing among ( or more alternative courses of actions for the !ur!ose of attaining one or more goals.Decision ma#ing is a !art of Problem )olving.4What is D))? D)) is an interactive software*based systemto hel! decision ma#ers com!ile useful information +from raw data, documents, personal knowledge, and/or business models, to identify and solve !roblems and ma#e decisions.5Advantages of D))-. %m!roved data management "any decisions involves data. .om!uters can search/ store +inside organi0ation or in the website outside organi0ation, and transmit need data uic#ly/ economically and securely.(. )!eedy com!utation A com!uter enables the decision ma#ers to !erform com!utation uic#ly and at a low cost. 'housands of alternatives can be evaluated in seconds.1. 2uality su!!ort .om!uters can im!rove the uality of decision made. 3or e4am!le$ more data can be accessed/ more alternatives can be evaluated/ forecasts can be im!roved. etc.65eneral !ur!ose of D))6. 7vercoming cognitive limits in !rocessing and storing information 'he human mind has only a limited ability to !rocess and store information. .ognitive limits$ an individual8s !roblem solving ca!ability is limited when a wide range of diverse information and #nowledge is reuired. .om!uteri0ed system enable !eo!le to overcome their cognitive limits by uic#ly accessing and !rocessing vast amounts of stored information.7Disadvantages of D))-. .om!uter can only ta#e the data that is in!utted/ but human can see from many !ers!ective.(. Di9cult to give solutions for sub:ective !roblems.1. ;imited data ty!es for in!ut.8What is Decision "odeling?A scienti&c a!!roach to managerial decision ma#ing.'he develo!ment of a +mathematical, model of a real*world scenario.'he model !rovides insight into the solution of the managerial !roblem.9'y!es 7f Dec