Define Decision

by Ahaabwe Diana
(Uganda)

Define decision making and quantitative methods?



Decision Making

Comments for Define Decision

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Mar 23, 2010
Define Decision Making and Quantitative
by: Dee Reavis

Decision Making: Decision making is all about choosing. Consider an example.
When you come to an intersection of 2 roads, you can chose to go straight or to turn left or right. If you are new to the area, you may not be sure which way to go. Your goal is to reach a certain location. So you begin your decision making by obtaining more information. You look at the map. You discover that if you go straight ahead you can get to your goal. However, going right gets you there too. Now you have to evaluate which direction is best. Going right is shorter, but the roads are all dirt. Going straight lets you drive on paved roads. Since it has just rained, you decide to go straight.

Decision making is the process of defining a problem, finding feasible solutions, choosing the best solution and implementing it.

Quantitative: Means using numbers. The opposite of quantitative is qualitative. Quantitative methods as applied to decision making is the use of numerical analysis in order to choose the best solution.


Decision making is the process of defining a problem, finding feasible solutions, choosing the best solution and implementing it.



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5 Stages In Decision Making

by Bibu.N.P
(Kerala)

Explain how the five stages of the buying decision process might be applied in the following situations 1)The new task buying of a conveyor belt for a soft drink bottling plant; and
2)The straight re-buy of maintenance services for that conveyor belt.

Answer:

Buying A New Conveyor Belt
Use the steps defined in Decision Making Model In Five Steps

1. Define problem: Belt is worn. A broken belt will shutdown the production line.

2. Identify Alternatives:
a. XYZ Company has a belt for x dollars with an expected life of 5 years.
b. ABC Company has a belt for 1.5x dollars with an expected life of 7 years.
c. GHI Company has a belt for 1.8x dollars with an expected life of 9 years.

3. Analyze, Rank and Decide Between Alternatives. Use NPV or IRR analysis ot determine most economic alternative.

4. Buy Belt and Install.

5. Follow Up. Determine if the belt is working correctly and meeting manufactures specifications.


Decision Making

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Decision Making Factors

by Safaf
(Saucier)

What factors can influence a decision?


Decision Making

Comments for Decision Making Factors

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Feb 13, 2010
Decision Factors
by: Dee Reavis

The decision factors that you will use to make a decision will vary depending on the decision to be made, the situation, and what is important to you. Some of the factors can be objective while others may be very subjective. If you are making an economic decision, then most of the factors, that you would chose would likely be money oriented. If you are making a family decision, then your decision factors would probably be related to feelings and caring.

The bottom line is that you need to chose the factors that are important to you when you are making a decision. That is part of the process.

To see an example of some possible factors to be used in making a decision about a business or occupation go to Example of a Decision Matrix. The factors are shown on the top of the matrix.

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