Book contents
- Frontmatter
- Contents
- SECTION 1 GETTING ORIENTED
- SECTION 2 HARVESTING INTELLIGENCE
- 4 Structuring Problems and Option Visualization
- 5 Simplification Tactics
- 6 The Analytics of Optimization
- 7 Complex Optimization
- SECTION 3 LEVERAGING DYNAMIC ANALYSIS
- SECTION 4 ADVANCED AUTOMATION AND INTERFACING
- Glossary of Key Terms
- Appendix – Shortcut (Hot Key) Reference
- Index
4 - Structuring Problems and Option Visualization
from SECTION 2 - HARVESTING INTELLIGENCE
Published online by Cambridge University Press: 06 July 2010
- Frontmatter
- Contents
- SECTION 1 GETTING ORIENTED
- SECTION 2 HARVESTING INTELLIGENCE
- 4 Structuring Problems and Option Visualization
- 5 Simplification Tactics
- 6 The Analytics of Optimization
- 7 Complex Optimization
- SECTION 3 LEVERAGING DYNAMIC ANALYSIS
- SECTION 4 ADVANCED AUTOMATION AND INTERFACING
- Glossary of Key Terms
- Appendix – Shortcut (Hot Key) Reference
- Index
Summary
Decision modeling/representation describes the use of data and logic to clarify the specific nature of a situation for which assistance in the decision-making process may be needed. The hope is that in clarifying such details, the development of meaningful suggestions and solutions may be easier to create.
Most management problems for which decisions are sought can be represented by three standard elements – objectives, decision variables, and constraints.
Objective
Maximize profit
Provide earliest entry into market
Minimize employee discomfort/turnover
Decision variables
Determine what price to use
Determine length of time tests should be run on a new product/service
Determine the responsibilities to assign to each worker
Constraints
Can't charge below cost
Test enough to meet minimum safety regulations
Ensure responsibilities are at most shared by two workers
All of these elements can be visualized graphically often to the benefit of analysis and general insights. Our initial discussion will be limited to objectives and decision variables; we'll discuss constraints later on in this chapter.
In most business scenarios, managers are faced with making a set of decisions that impact a final outcome (objective). This tends to make the decision process more complex, and sometimes the rationale for making specific decisions are difficult to describe.
Value of data visualization
As the old saying goes, a picture is worth a thousand words (Figure 4.1).
Some pictures are cute, but may say very little to professionals – at least not initially.
Misleading suggestions can throw a decision maker off his or her game.
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- Information
- Excel Basics to BlackbeltAn Accelerated Guide to Decision Support Designs, pp. 63 - 88Publisher: Cambridge University PressPrint publication year: 2008