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6 Contents

2.5 Decision Making: The Design Phase 77
Models 77
Mathematical (Quantitative) Models 77
The Benefits of Models 77
Selection of a Principle of Choice 78
Normative Models 79
Suboptimization 79
Descriptive Models 80
Good Enough, or Satisficing 81
Developing (Generating) Alternatives 82
Measuring Outcomes 83
Risk 83
Scenarios 84
Possible Scenarios 84
Errors in Decision Making 84
2.6 Decision Making: The Choice Phase 85
2.7 Decision Making: The Implementation Phase 85
2.8 How Decisions Are Supported 86
Support for the Intelligence Phase 86
Support for the Design Phase 87
Support for the Choice Phase 88
Support for the Implementation Phase 88
2.9 Decision Support Systems: Capabilities 89
A DSS Application 89
2.10 DSS Classifications 91
The AIS SIGDSS Classification for DSS 91
Other DSS Categories 93
Custom-Made Systems Versus Ready-Made Systems 93
2.11 Components of Decision Support Systems 94
The Data Management Subsystem 95
The Model Management Subsystem 95
▶ ApplicAtion cAse 2.2 Station Casinos Wins by Building Customer
Relationships Using Its Data 96
▶ ApplicAtion cAse 2.3 SNAP DSS Helps OneNet Make
Telecommunications Rate Decisions 98
The User Interface Subsystem 98
The Knowledge-Based Management Subsystem 99
▶ ApplicAtion cAse 2.4 From a Game Winner to a Doctor! 100
Chapter Highlights 102 • Key Terms 103
Questions for Discussion 103 • Exercises 104
▶ end-of-chApter ApplicAtion cAse Logistics Optimization in a
Major Shipping Company (CSAV) 104
References 105

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