Programmed versus Non programmed problems
Well structured problems that are repetitive and routine.
Example __ Weekly scheduling of employees, monthly determination of
Cash flow & selection of an inventory level for a specific item
Poorly structured or non programmed problems, which are novel and non
recurrent.
Example __ Merger & acquisition decisions, undertaking a complex
Research & development project, reengineering a corporation & opening
A university
Problem Decomposition
Many complex problems can be divided into sub problems.
Solving the simple sub problems may help in solving the complex
problem.
Problem Ownership
A problem exists in an organization only in someone or some group is
willing to take the responsibility to solve it & if the organization has the
capability to solve it.
The Design Phase
The design phase involves generating, developing & analyzing possible
courses of action.
This includes activities such as understanding the problem & testing
solutions.
In this phase, a model of the problem situation is constructed, tested &
validated.
For a mathematical mode, the variables are identified and the equations
describing their relationships are established.
The task of models involves a combination of art and science.
The components of the model….
o The Structure of the model
o Developing alternatives
o Measuring outcomes
o Scenarios
o Selection of a principle of
choice
o Predicting outcomes
The Components of Quantitative models
All models are made up of three basic components.
1. Decision variables
2. Uncontrollable variables - Parameters
3. Result variables
In a non quantitative model, the relationships are symbolic or qualitative.
Result Variables reflects the level of effectiveness of the system that is
they indicate how well the system performs or attains its goals.
A dependent variable means that for the event described by this variable
to occur.
Decision variables describe the alternative courses of action.
Example_ In an investment problem, investing in bonds is a decision
Variable
In schedule decision, variables are people, time & schedule.
Uncontrollable variables or parameters
These factors can be either fixed, in which case they are called
parameters, or they can vary (variables)
Example _ a city’s building code, tax regulations, prices of utilities.
Some of these variables place limits on the decision maker and therefore
form what are called the constraints of the problem
Intermediate result variables
Intermediate result variables reflect intermediate outcomes.
Example_ in determining machine scheduling, spoilage is an intermediate
result variable and total profit is the result variable.
Example_ employee salaries or wages, which is a decision variable. It
determines employees satisfaction (intermediate outcome), which
determines the productivity level (final result)
Well structured problems that are repetitive and routine.
Example __ Weekly scheduling of employees, monthly determination of
Cash flow & selection of an inventory level for a specific item
Poorly structured or non programmed problems, which are novel and non
recurrent.
Example __ Merger & acquisition decisions, undertaking a complex
Research & development project, reengineering a corporation & opening
A university
Problem Decomposition
Many complex problems can be divided into sub problems.
Solving the simple sub problems may help in solving the complex
problem.
Problem Ownership
A problem exists in an organization only in someone or some group is
willing to take the responsibility to solve it & if the organization has the
capability to solve it.
The Design Phase
The design phase involves generating, developing & analyzing possible
courses of action.
This includes activities such as understanding the problem & testing
solutions.
In this phase, a model of the problem situation is constructed, tested &
validated.
For a mathematical mode, the variables are identified and the equations
describing their relationships are established.
The task of models involves a combination of art and science.
The components of the model….
o The Structure of the model
o Developing alternatives
o Measuring outcomes
o Scenarios
o Selection of a principle of
choice
o Predicting outcomes
The Components of Quantitative models
All models are made up of three basic components.
1. Decision variables
2. Uncontrollable variables - Parameters
3. Result variables
In a non quantitative model, the relationships are symbolic or qualitative.
Result Variables reflects the level of effectiveness of the system that is
they indicate how well the system performs or attains its goals.
A dependent variable means that for the event described by this variable
to occur.
Decision variables describe the alternative courses of action.
Example_ In an investment problem, investing in bonds is a decision
Variable
In schedule decision, variables are people, time & schedule.
Uncontrollable variables or parameters
These factors can be either fixed, in which case they are called
parameters, or they can vary (variables)
Example _ a city’s building code, tax regulations, prices of utilities.
Some of these variables place limits on the decision maker and therefore
form what are called the constraints of the problem
Intermediate result variables
Intermediate result variables reflect intermediate outcomes.
Example_ in determining machine scheduling, spoilage is an intermediate
result variable and total profit is the result variable.
Example_ employee salaries or wages, which is a decision variable. It
determines employees satisfaction (intermediate outcome), which
determines the productivity level (final result)
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