Define Decision

by Ahaabwe Diana
(Uganda)

Define decision making and quantitative methods?

 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.

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.

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.

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

Decision Making Factors

by Safaf
(Saucier)

What factors can influence a decision?