Chapter 2: Decision-Making

Question 1

may be defined as “the process of
identifying and choosing alternative courses of action in
a manner appropriate to the demands of the situation.

Answer 1

Decision-making

Question 2

Decision Making Processes

Answer 2

1. diagnose. problem
2. analyze environment
3. articulate problem or opportunity
4. develop viable alternatives
5. evaluate alternatives
6. make a choice
7. implement decision
8. evaluate and adapt deciaion results

Question 3

Components of Environment in Decision Making

Answer 3

1. internal and
2. external.

Question 4

APPROACHES IN SOLVING PROBLEMS

Answer 4

1. qualitative evaluation, and
2. quantitative evaluation.

Question 5

This term refers to the evaluation of alternatives using any technique in a group classified as rational and analytical.

Answer 5

Quantitative Evaluation.

Question 6

QUANTITATIVE MODELS FOR DECISION
MAKING

Answer 6

1. inventory models
2. queuing theory
3. network models
4. forecasting
5. regression analysis
6. simulation
7. linear programming
8. sampling theory
9. statistical decision theory

Question 7

The two most prominent network models are:

Answer 7

1. The Program Evaluation Review Technique

<PERT)
2. The Critical Path Method (CPM)

Question 8

Describes how todetermine the number of service units that will minimize
both customer waiting time and cost of service.

Answer 8

Queuing Theory

Question 9

Types of Inventory Model

Answer 9

1. Economic order quantity model
2. Production order quantity model
3. Back order inventory model
4. Quantity discount model