ORA M1-M4 [PRELIM] Flashcards
True False
In recent years, it has become clear that human beings are far from making
decisions in a rational way, either as an individual or as a part of a group.”
t
Psychological studies have found _____ experienced by human beings when
making decisions.
cognitive anomalies or biases
These cognitive biases and the increasing complexity of modern problems make it
extremely important to adopt a methodology for making _____ , _____, and _____ decisions.”
Straightforward
Effective
Safe
The _____ meets all these requirements (Straightforward, Effective, Safe), and since its appearance in 1980, it has been adopted and used by a large number of institutions all over the world
Analytic Hierarchy Process
___ an approach to decision making that involves structuing multiple choice criteria into a hierarchy, assessing relative importance of these criteria, comparing alternatives, and determining an overall ranking of the alternatives
Analytic Hierarchy Process
____ remains the most highly regarded and widely used decision making method
Analytic Hierarchy Process
the main procedure of Analytic Hierarchy Process is the ___
Radical root method or geometric mean method
MCDA problems are complex, it is beneficial to break them down and solve one sub prob at a time.
Break down occurs in 2 phases of the decision process, which are:
Problem Structuring
Prioritization through the use of pairwise comparisons
True or false
Odd numerical values in an intensity scale for criteria pairwise comparison needs “Compromise”
false,
Even
____ is used to determine the relative importance of criteria or
alternatives and is an integral part of many widely used decision-making tools. It is created with the help
of scale of relative importance.
Pairwise Comparison Matrix (PCM)
Another important consideration when completing the comparison matrix is the extend to which it respects the _____ (avoid
inconsistencies).
transitivity rule
____ decisions are the important decisions of the firm. These are usually taken by upper and middle level management. they usually relate to the policies of the firm or the strategic plan for the future.
Strategic Decisions
____ decisions pertaining to the policy and planning of the firm are knwon as policy decisions. Such decisions are usually resered for the firm’s top management officials. they have long term impact and reuire a great deal of analysis
tactical decisions
____ decisions are the decisions necessary to put to the policy decisions into action. these decisions help implement the plans and policies taken by the high level managers
operational decisions
_______ refers to making decisions in the presence of multiple, usually conflicting criteria
MCDM
____ methods have been developed to support the decision maker in their unique and personal decision process
Multi-criteria Decision analysis
The development of the ___ is closely related to the advancement of computer technology
MCDM
_____ relates to a number of discrete alternatives
MADM
_____ relates to an infinite or uncountable number of alternatives
MODM
Two things that makes multiple objective decision making difficult:
Conflict among criteria
Incommensurable units:
Problem identification is ____ in nature
Subjective
_____ reflect the factors that decision makers think important in making the choice
Decision criteria (Price, comfort, etc.)
t or f
Assessing weights may be highly subjective
t
4 examples of Decision Analysis Tools
Decision tree
Game theory
Goal Programming
Analytical Hierarchy process
4 examples of Operations Research Model
L. programming
Queueing theory
Dynamic Programming
Econ Order Quantity
___ has been defined as an indication of the preferred direction of movement.
Objective
When stating objectives, we use the terms ___ or ___
Maximize or minimize
___ is used to measure performance in relation to an objective.
Attribute
___ (highest or lowest) level in the structure of objectives are most specific and most operational
lowest level
____ converts values into a common scale allowing for rating and ranking
normalization
_____ is also known as weighted sum method, which is the simplest method that is widely used.
simple additive weighting
____ method’s strategy is to avoid the worst-case scenario while maximizing the criterion
with the lowest performance.
▪ The alternative with the highest score on its weakest criterion is preferred.
Maximin method
the ____ method chooses an alternative based on its best rather than worst attribute.
Maximax
___ method requries that an alternative meet a minimum threshold for all attributes
Conjuctive method
____ method requires that the alternative exceed the given threshold for atleast one attribute
disjunctive attributeq
_____ describes a process of sequential elimination is carried out unitl either a single solution is discovered
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
decision variable
A single measure by which the goodness of any solution to a decision problem can be measured.
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
Goal deviation
a type of constraint that may influence but are not directly related to goal
system constraints
a type of constraint directly related to goals
goal constraint
___ constraints corresponds to goals which has been obtained by using the aspirations for the
objective functions
soft
___ constraint corresponding to the feasible region or the original constraints in which no violation is acceptable.
hard
