CHAPTER 2: DECISION-MAKING

Question 1

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

the heart of all the management functions

Answer 2

Decision-making

Question 3

Rational decision-making, according to _________, is a process involving the following steps

Answer 3

David H. Holt

Question 4

identification of the problem is tantamount to having the problem half-solved.

Answer 4

Diagnose Problem

Question 5

a difference between an actual situation and a desired situation.

Answer 5

Problem

Question 6

identification of constraints, which may be spelled out as either internal or external limitations.

Answer 6

Analyze the Environment

Question 7

Components of the Environment

Answer 7

o Internal Environment
o External Environment

Question 8

organizational activities within a firm that surrounds decision-making.

Answer 8

Internal Environment

Question 9

variables that are outside the organization and not typically within the short run control of top management.

Answer 9

External Environment

Question 10

each alternative must be analyzed and evaluated in terms of its value, cost, and risk characteristics.

Answer 10

Evaluate Alternatives

Question 11

Choice-making

Answer 11

process of selecting among alternatives representing potential solutions to a problem.

Question 12

refers to carrying out the decision so that the objectives sought will be achieved. To make implementation effective, a plan must be devised.

Answer 12

Implementation

Question 13

process which requires checking at each stage of the process to assure that the alternatives generated, the criteria used in evaluation, and the solution selected for implementation are in keeping with the goals and objectives.

Answer 13

Feedback

Question 14

Control

Answer 14

actions made to ensure that activities performed match the desired activities or goals, that have been set.

Question 15

evaluation of alternatives using intuition and subjective judgment.

Answer 15

Qualitative Evaluation

Question 16

evaluation of alternatives using any technique in a group classified 118 rational and analytical.

Answer 16

Quantitative Evaluation

Question 17

Types of Quantitative Techniques

Answer 17

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 18

Calculate the number of items that should be ordered at one time to minimize the total yearly cost of placing orders and carrying the items in inventory.

Answer 18

Economic order quantity model

Question 19

This is an economic order quantity technique applied to production orders.

Answer 19

Production order quantity model

Question 20

This is an inventory model used for planned shortages.

Answer 20

Back-order inventory model

Question 21

An inventory model used to minimize the total cost when quantity discounts are offered by suppliers.

Answer 21

Quantity discount model

Question 22

describes how to determine the number of service units that will minimize both customers waiting time and cost of service.

Answer 22

Queuing Theory

Question 23

these are models where large complex tasks are broken into smaller segments that can be managed independently.

Answer 23

Network Models

Question 24

to schedule, monitor, and control large and complex projects by employing three-time estimates for each activity.

Answer 24

The Program Evaluation Review Technique (PERT)

Question 25

only one time factor per activity that enables engineer managers to schedule, monitor, and control large and complex projects.

Answer 25

The Critical Path Method (CPM)

Question 26

the collection of past and current information to make predictions about the future.

Answer 26

Forecasting

Question 27

a forecasting method that examines the association between two or more variables.

Answer 27

Regression Analysis

Question 28

model constructed to represent reality, on which conclusions about real-life problems can be used.

Answer 28

Simulation

Question 29

used to produce an optimum solution within the bounds imposed by constraints upon the decision.

Answer 29

Linear Programming

Question 30

samples of populations are statistically determined to be used for a number of processes, such as quality control and marketing research.

Answer 30

Sampling Theory

Question 31

rational way to conceptualize, analyze, and solve problems in situations involving limited, or partial information about the decision environment.

Answer 31

Decision theory