TAXONOMY OF DECISION MODELING A. MODELS: 1. DETERMINISTIC vs PROBABILISTIC 2. LINEAR vs NONLINEAR 3. UNCONSTRAINED vs CONSTRAINED 4. CONTINUOUS vs DISCRETE 5. SINGLE OBJECTIVE vs MULTIPLE OBJECTIVES B. ANALYSIS: 1. SOLUTION vs SIMULATION SOLULTION METHODS: a. TOTAL ENUMERATION b. ALGEBRAIC c. CALCULUS d. ALGORITHM e. HEURISTIC C. RESULTS: 1. OPTIMIZATION vs DESCRIPTIVE 2. GENERAL CASE vs SPECIFIC CASE

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TAXONOMY OF DECISION MODELING (With Descriptions) A. MODELS: 1. DETERMINISTIC vs PROBABILISTIC Sometimes called “certainty” vs “uncertainty.” In deterministic models, parameter values are assumed to be known values, i.e., constants. In probabilistic models, parameter values are not known with certainty and are therefore represented by probability distributions. 2. LINEAR vs NONLINEAR Linear models are characterized by linear functional relationships, i.e., y = 2x “Linear” implies both “proportionality” and “Additivity.” Nonlinear models are characterized by nonlinear functional relationships, i.e., y = 3x2 or y = 5/x, or y = 7x1x2 3. UNCONSTRAINED vs CONSTRAINED Unconstrained models have no restrictions on the values of the solution variables. Constrained models have certain restrictions on the values of the solution variables, i.e., x ≤ 40, or x1 + 2x2 ≤ 300. 4. CONTINUOUS vs DISCRETE Sometimes referred to as “real” variables vs. “integer” variables. Continuous models contain continuous functional relationships and allow fractional solutions. Discrete models may require that the solution values be integer. 5. SINGLE vs MULTIPLE OBJECTIVES Many business decisions are made based on a single criteria such as profit or cost. However, in other situations, we may need to consider several criteria at once such as profit, cost, labor relations, pollution control, company image, etc. B. ANALYSIS: 1. SOLUTION vs SIMULATION Solution typically means “mathematical” manipulation of the model. A solution method is usually a mathematical manipulation that yields...

...programming model for a project of your choice, either from your own work or as a hypothetical situation. Be sure that you stae your situation first, before you develpp the LP model
Linear programming is a modeling technique that is used to help managers make logical and informed decisions. All date and input factors are known with certainty. Linear program models are developed in three different steps:
Formulation
Solution
Interpretation
The...

...1. StillWater Mining Company
a)
Interest Rate 12%
Price per ounce $ 1,500.00
Cost per ounce $ 400.00
Total ounces a year 10,000
Profit per ounce $ 1,100
Revenue per year $ 15,000,000.00
Cost per year $ 4,000,000.00
Profit per year $ 11,000,000.00
Every year for the next 10 years, the firm earns a profit of $11 Million. The cash flow (in $ Million) is shown below:
Year T T+1 T+2 T+3 T+4 T+5 T+6 T+7 T+8 T+9
Profit 11 11 11 11 11 11 11 11 11 11
Using NPV formula, we find...

...Dolores Espino
Office: O’Mailia Hall Rm. 118
Tel: (305) 628-6791
E-mail: Mespino@stu.edu
Text :
Nagraj Balkrishnan ,Barry Render, and Ralph M. Stair Jr., Managerial DecisionModeling with Spreadsheets Prentice Hall, 2007.
Course Overview :
Quantitative methods are used in business to aid managers and leaders in making decisions. The purpose of this course is to provide students with a comprehensive working knowledge of the quantitative...

...Modeling, decision making, and optimization
In practical life, we have to continually make decisions. Making decisions are required for solving problems so that we can increase our opportunities and make life much easier and beneficial. There are many alternatives for making decisions, but making a rightful decision is a harder task. Evaluating these alternatives and choosing the best course...

...infer relationships between organisms over time |
Taxonomy | * Branch of systematic biology * Process of identifying, naming and organising biodiversity into related categories |
Taxon | General name for a group containing an organisms or groups of organisms that exhibit a set of shared traits |
Classification | Process of naming and assigning organisms or groups of organisms to a taxon |
Taxonomists | Scientists that study taxonomy |
Aristotle’s...

...MS5313 Managerial DecisionModeling
Part I: Chapter 1 Describing Data with Graphical Methods
Exercises
Multiple Choice Questions:
Identify the letter of the choice that best completes the statement or answers the question.
1. Which of the following is most likely a population as opposed to a sample?
a) respondents to a newspaper survey.
b) the first 5 students completing an assignment.
c) every third person to arrive at the bank.
d) registered...

...Spreadsheet Modeling and Decision Analysis
Sensitivity Report A sensitivity report of the analysis described above was created and can be found in Appendix E. The solution is not degenerate because there are no zero values in the allowable increase or allowable decrease columns of the constraints in the Sensitivity Report. All of the constraints affect the optimal solution. The solution is unique because there are no zero values in the allowable increase or...

...Decision Sheet
Situation Analysis
Strengths of Nirmal Rayons
1.Duopoly in the market – only two major players
2.Unutilized capacity of 1200 tonnes - can be used in case of unexpectedly high demand
3. Capacity increase sanctioned by the government – can be used to service newer markets
4. Rising number of users for Cellulose film
Weaknesses of Nirmal Rayons
1. Increased supply – 2 existing firms and 3 new ones have been given letters of intent for increasing capacity...

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