ORA M1-3 Flashcards
The most important decision of a firm. These are usually taken by upper and middle level management. They relate to the policies of the firm or the strategic plan for the future
strategic decision
a type of decision pertaining to the policy and planning of the firm known as the policy decisions. it is reserved for the firm’s top mngmt officials. they have long term impact on the firm and require great deal of analysis
Tactical decision
____ are decisions necessary to put the policy decisions into ACTION. it implement plans and policies taken by the high level managers
operational decisions
T or F
an ‘ideal’ option does
not usually exist, and therefore a compromise must be found.
T
____ refer to making decisions in presence of multiple, usually conflicting criteria
MCDM
___ are methods that have been developed to support the decision maker in their unique and personal decision process
MCDA
____ relates to infinite number of alternatives
while ___ relates to a number of discrete alternatives
– MODM
– MADM
___ are typical evaluating options where costs or price is usually the main criteria, and some measure of quality is typically another criterion
Conflicting criteria
MCDA is useful for ___ decision into smaller and understandable parts, ____ each part, and ____ the parts to produce a meaningful solution
dividing
analyzing
integrating
t or F
people and business always make their decision with single objectives
F. in multiple objectives
2 multiple objective decisions makin difficult
– conflicting among criteria
– incommensurable units (not same units)
MADM have 4 major components which are;
– alternatives
– attributes
– Weight of importance
– measure of alternatives
T or F
problem identification is objective in nature
F. Subj. in nature dapat. HIGHLY SUBJECTIVE
___ has been defined as an indication of the preferred direction of movement.
Objective
____ is used to measure performance in relation to an objective
Attribute
Attributes that are not directly related is known as ____
Proxy attribute
T or F
Thus, objectives at the highest level are most specific and most operational
False. LOWEST LEVEL
which are the second level objectives
____ measurable quantity whose value reflects the degree of achievement for a
particular objective / assigned to each sub-objective
attribute
___ is required for decision making methods because data must be numerical and comparable. it allows for rating and ranking
Data normalization
T or F
Non numeric Data should be converted into numerical data to allow normalization
T
Choosing a sutiable ____ to ensure a common scale and appropriate modelling representation as well as comparibility on criteria’s aggregation to obtain alternative ratings
Nomalization technique
simplest methods where all attributes are weighted according to their relative importance, SUM of weights must be equal to one.
WEIGHT ADDITIVE MODEL
____ is the primary distinction that in this method, multiplication is performed
WEIGHT PRODUCT MODEL
METHOD to avoid worst case scenario while maximizing the criterion with the lowest performance
Maximin Method
METHOD chooses an alternative based on its best rather than worst attribute
Maximax method
___ method requires that an alternative meet a minimum threshold for all attributes
Conjunctive method
____ is a process of sequential elimination that is carried out either a single solution discovered or all problems are resolved
lexicographic analysis method
Person(s), organization(s), or stakeholders to whom the decision problem under consideration
belongs.
Decision Maker
A factor over which the decision maker has control.
▪ The set of decision variables fully describe the problem and form the decision to be made.
▪ The purpose of the goal programming model can be viewed as a search of all the possible
combinations of decision variable values (known as decision space) in order to determine the point
which best satisfies the decision maker’s goals and constraints
Decision Variable
▪ A single measure by which the goodness of any solution to a decision problem can be measured.
▪ There are many possible criteria arising from different fields of application such as costs, profit, time,
distance, performance of a system, organizational strategies, and safety considerations.
Criterion
The numerical value specified by the decision maker that reflects his/her desire or satisfactory level
with regard to the objective function under consideration.
Aspiration Level
▪ The difference between what we actually achieve and what we desire to achieve.
▪ There are two types of goal deviations which we refer to as deviational variables:
Goal deviation
There are two types of constraints from all desired goals:
1. ______ – may influence but are not directly related to goals
2. ______ – directly related to goals
– System constraints
– Goal constraints
_____ - corresponds to goals which has been obtained by using the aspirations for the
objective functions.
Soft Constraints
___ - corresponding to the feasible region or the original constraints in which no
violation is acceptable
Hard Constraints
True or False
An optimal solution is attained when all the goals are reached as close as POSSIBLE to their
aspiration level, while satisfying a set of constraints.
True
Non Pre-emptive Goal Programming has no Priority Levels
True
