Exam 9: Model-Based Decision Making: Optimization and Multi-Criteria Systems

The question "What will total earnings be if we reduce our inventory stocking costs by 10%?" is a type of

Most quantitative models are based on solving for a single ________.

A decision tree can be cumbersome if there are many ________ or states of nature.

What is the most common method for treating risk in decision trees and tables?

List and describe four categories of models. Give examples in each category.

What is an influence diagram?

Goal seeking is roughly the opposite of "what-if" analysis.

In the ExxonMobil case study, the approach taken was to find individual solutions to routing, transportation, scheduling, and inventory management, and select the best solution for one of the variables.

In the Fred Astaire East Side Dance Studio case study, a(n) ________ model was used to organize ballroom showcases and arrange participants and timeslots accordingly.

Using modeling for decision support can currently achieve all of the following EXCEPT

In the Harrah's Cherokee Casino and Hotel case study, the revenue management system modified room prices based on demand and offered the same price/availability to all customers at any one time.

In order to be effective, analysts must use models to solve problems with no regard to the organizational culture to find optimal results.

The question "What advertising budget is needed to increase market share by 7%?" is a type of

In the opening vignette, Midwest ISO used optimization ________ in their problem solving.

Sensitivity analysis seeks to assess the impact of changes in the input data and parameters on the proposed solution.

List four rational economic assumptions the linear programming allocation model is based upon.

Deciding to purchase an FDIC-insured Certificate of Deposit at a U.S. bank can be viewed as decision making under ________.

Using data cubes in OLAP systems opens the data up to analysis by more classes of models.

Taking a decision under risk is different from taking the decision under uncertainty.

All quantitative models are typically made up of four basic components. List and describe them as well as what links them together.