Info Systems Notes for the Final - Info Systems Notes for the Final(power point from teacher with notes from student expanding on book Case 10(Lab

Info Systems Notes for the Final - Info Systems Notes for...

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Info Systems Notes for the Final (power point from teacher with notes from student expanding on book) Case 10 (Lab) Chapter 1 Chapter 2 Chapter 3 Case 13 (Lab) Chapter 4 Chapter 5 Case 16 (Lab) Midterm Review Slides and Examples Questions *Chapter 6 A decision is simply a choice among alternatives. Examples: deciding on a college major deciding on a restaurant for dinner deciding on a new product to launch Good decision making requires good information and the skills and tools to appropriately analyze the relevant information Decision making can be seen as choosing alternative inputs (decision variables) based on target outputs with varying levels of information about the process that generates outputs from inputs Example: You are a CEO at a electronics company and your target output is to increase revenues You are considering to introduce a new product (a smartwatch) to achieve the target output (higher revenue). Hence, your input is whether or not to introduce a smartwatch. You need to gather information on how the values of input (smartwatch/no smartwatch) will effect the output (revenue) While deciding on a College Major the alternatives for decision making are: A. Various costs B. Different majors C. Starting salaries D. Long-term prospects Structured or Programmed Decisions: Decisions that are routine and repetitive, and often have a well- defined procedure Example: Manager of a fast food restaurant needs to decide on the number of hamburger buns to buy for tomorrow Target Output: Very low probability (<5%) that the restaurant will run out of hamburger buns tomorrow Input: Potential number of hamburger buns (decision variable) Process Information: Effect of the day of the week and month on sales Effect of local events on sales Effect of weather on sales Constraints on the number of hamburger buns Manager could program a spreadsheet that would output the probability of a stockout given a certain number of hamburger buns for each day Info Systems Notes for the Final (power point from teacher with notes from student and expansion on book) * = Not on the Mid Term
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Unstructured or Non-programmed Decisions: Decisions that are novel and do not have a preexisting procedure Example: Decision to introduce a new smartwatch by an electronics company Semi-structured Decisions: Decisions that have some elements that are structured and other elements that are unstructured Example: Planning annual compensation for employees in a large company Some structured decisions can be automated leading to what is called automated decisions making .
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  • Spring '13
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  • Info Systems Notes

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