Ch9_SN_F09

Ch9_SN_F09 - 1 Decision Support Systems [Ch. 9+] 1. 2. 3....

Info iconThis preview shows pages 1–4. Sign up to view the full content.

View Full Document Right Arrow Icon
1 Decision Support Systems [Ch. 9+] ± Learning Objectives: 1. The process of decision making and computerized support for decision making 2. Decision support systems (DSSs): Benefits, structure; computerized support for group decision making 3. Organizational decision support and executive support systems 4. Business Intelligence (BI); data mining, dashboards, data visualization techniques 5. Artificial intelligence (AI) IE332 F’09 a. Expert system: Its definition and its components b. Natural language processing and generation c. Artificial neural networks ( ANNs) and their major applications d. Fuzzy logic and its applications 2 The Process of Decision Making ± A decision is a choice made between two or more alternatives ± Any choice compares costs benefits and risk Any choice compares costs, benefits, and risks ± Organizational goals are achieved through a process of decisions on the use of limited resources (people, money, energy, materials, space, time) ± Applied resources are considered inputs ; the attainment of the goals is viewed as the output of the process. The ratio between inputs and outputs is an indication of the IE332 F’09 organization’s productivity . ± Good decisions result in good performance ± Optimal decisions result in optimal performance
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
3 The process and phases in decision making IE332 F’09 4 Use of Models in decision making ¾ Recall: A model is a simplified representation, or abstraction of reality ¾ The benefits of modeling in decision making are: 9 The cost of virtual experimentation is much lower than the cost of experimentation conducted with a real system 9 Models enable the simulated compression of time -- Years of operation can be simulated in seconds of computer time 9 Manipulating the model ( by changing variables ) is IE332 F’09 much simpler and safer than manipulating the real system 9 Modeling allows a manager to better deal with uncertainly by introducing many “ what- ifs” and calculating the risks involved with specific actions
Background image of page 2
5 Why Decision makers (Managers, Engineers) Need Computing Support ± A key to effective decision making is to explore and compare many relevant alternatives: The more alternatives that exist, the more computer-assisted search alternatives that exist, the more computer assisted search and comparison are needed ± Typically, decisions must be made under time pressure. Frequently it is not possible to manually process the needed information fast enough to be effective ± It is usually necessary to conduct a sophisticated analysis in order to make a good decision. Such analysis requires the use of modeling. IE332 F’09 ± Decision makers can be in different locations and so is the information. Bringing them all together quickly and inexpensively may be a difficult task.
Background image of page 3

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 4
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 01/19/2012 for the course IE 230 taught by Professor Xangi during the Spring '08 term at Purdue.

Page1 / 20

Ch9_SN_F09 - 1 Decision Support Systems [Ch. 9+] 1. 2. 3....

This preview shows document pages 1 - 4. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online