08-08-2012, 12:14 PM
DECISION SUPPORT SYSTEM
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Decision Support System:
A decision support system (DSS) is a computer-based information system that supports business or organizational decision-making activities.
DSSs serve the management, operations, and planning levels of an organization and help to make decisions, which may be rapidly changing and not easily specified in advance.
A properly designed DSS is an interactive software-based system intended to help decision makers compile useful information from a combination of raw data, documents, personal knowledge, or business models to identify and solve problems and make decisions.
Three fundamental components of DSS:
Database management system (DBMS):
A DBMS serves as a data bank for the DSS.It store large quantities of data that are relevant to the class of problems for which the DSS has been designed and provides logical data structures (as opposed to the physical data structures) with which the users interact. A DBMS separates the users from the physical aspects of the database structure and processing. It should also be capable of informing the user of the types of data that are available and how to gain access to them.
Model-base management system (MBMS):-
The role of MBMS is analogous to that of a DBMS.
Its primary function is providing independence between specific models that are used in a DSS from the applications that use them.
The purpose of an MBMS is to transform data from the DBMS into information that is useful in decision making. Since many problems that the user of a DSS will cope with may be unstructured, the MBMS should also be capable of assisting the user in model building
Dialog generation and management system (DGMS):-
The main product of an interaction with a DSS is insight. As their users are often managers who are not computer-trained, DSSs need to be equipped with intuitive and easy-to-use interfaces. These interfaces aid in model building, but also in interaction with the model, such as gaining insight and recommendations from it. The primary responsibility of a DGMS is to enhance the ability of the system user to utilize and benefit from the DSS.
Architecture of DSS:
The user interacts with the DSS through the DGMS. This communicates with the DBMS and MBMS, which screen the user and the user interface from the physical details of the model base and database implementation.
Characteristics of DSS:
It is a management support system whose capabilities go beyond those of MIS.
It is only supportive in nature and human decision maker .
It is individual specific.
Extensively uses databases.
Also incorporates various mathematical, statistical and operations research models.
Helps decision makers to carry out “WHAT -IF” analysis.
It has extensive Querying capabilities where in they can be queried for various option.
Provides good user interfaces for decision makers.
CLASSES OF DSS
File Drawer Systems :
They are the simplest type of DSS
Can provide access to data items
Data is used to make a decision
ATM Machine
Use the balance to make transfer of funds decisions
Data Analysis Systems
Provide access to data
Allows data manipulation capabilities
Airline Reservation system
No more seats available
Provide alternative flights you can use
Use the info to make flight plans
Analysis Information Systems
Information from several files are combined
Some of these files may be external
We have a true “data base”
The information from one file, table, can be combined with information from other files to answer a specific query.
Accounting Models
Use internal accounting data
Provide accounting modeling capabilities
Can not handle uncertainty
Use Bill of Material
Calculate production cost
Make pricing decisions
Representational Model
Can incorporate uncertainty
Uses models to estimate the consequences of action that represent some non definitional characteristics of the system.
Can be used to augment the capabilities of Accounting models
Use the demand data to forecast next years demand
Use the results to make inventory decisions.
Optimization Systems
Used to estimate the effects of different decision alternative
Based on optimization models
Can incorporate uncertainty
Assign sales force to territory
Provide the best assignment schedule
Suggestion Systems
A descriptive model used to suggest to the decision maker the best action
A prescriptive model used to suggest to the decision maker the best action
May incorporate an Expert System
Use the system to recommend a decision
Ex: Applicant applies for personal loan
TYPE OF ANALYTICAL MODELING ACTIVITIES:
a) What-if analysis :
In what -if analysis ,an end user make change to variables or relationships among variables and observes the resulting changes in the values of other variables.
e.g What if we cut advertising by 10 percent? What would happen to sales?
b) Sensitivity Analysis :
Sensitivity analysis is a special case of what -if analysis The value of one variable is changed repeatedly and the resulting changes on other variables are observed.
e.g Let’s cut advertising by $100 repeatedly so we can see its relationship to sales.
C) Goal-seeking analysis :
Goal seeking analysis reverses the direction of the analysis done in what-if and sensitivity analysis .
Goal-seeking analysis set a target value for a variables , goal-seeking analysis sets a target value for a variables and then repeatedly changes other variables until the target value achieved.
e.g Let’s try increases in advertising until sales reach $ 1 million.
d) Optimisation analysis:
Optimization analysis is more complex extension of goal-seeking analysis.
The goal in optimisation analysis is to find the optimum value for one or more target variables, given certain constraints.Then one or more other variables are changed repeatedly ,subject to the specified constraints ,until the best value for the target variables are discovered.
e.g: what’s the best amount of advertising to have ,given our budget and choice media?
Examples of DSS applications:
Airline DSS:-
The American Analytical Information Management System(AAIMS) is a decision support system used in the airline industry.
AAIMS support a variety of airline decision by analyzing data collected on airline aircraft utilization , seating capacity and utilization and traffic statistics.
2. Geographic DSS:
Geographic information system(GIS) are a special category of DSS that integrate computer graphics and geographic databases and other DSS feature. A geographic information system is DSS that constructs and displays maps and other graphics displays that support decisions affecting the geographic distribution of peoples and resources
[attachment=30530]
Decision Support System:
A decision support system (DSS) is a computer-based information system that supports business or organizational decision-making activities.
DSSs serve the management, operations, and planning levels of an organization and help to make decisions, which may be rapidly changing and not easily specified in advance.
A properly designed DSS is an interactive software-based system intended to help decision makers compile useful information from a combination of raw data, documents, personal knowledge, or business models to identify and solve problems and make decisions.
Three fundamental components of DSS:
Database management system (DBMS):
A DBMS serves as a data bank for the DSS.It store large quantities of data that are relevant to the class of problems for which the DSS has been designed and provides logical data structures (as opposed to the physical data structures) with which the users interact. A DBMS separates the users from the physical aspects of the database structure and processing. It should also be capable of informing the user of the types of data that are available and how to gain access to them.
Model-base management system (MBMS):-
The role of MBMS is analogous to that of a DBMS.
Its primary function is providing independence between specific models that are used in a DSS from the applications that use them.
The purpose of an MBMS is to transform data from the DBMS into information that is useful in decision making. Since many problems that the user of a DSS will cope with may be unstructured, the MBMS should also be capable of assisting the user in model building
Dialog generation and management system (DGMS):-
The main product of an interaction with a DSS is insight. As their users are often managers who are not computer-trained, DSSs need to be equipped with intuitive and easy-to-use interfaces. These interfaces aid in model building, but also in interaction with the model, such as gaining insight and recommendations from it. The primary responsibility of a DGMS is to enhance the ability of the system user to utilize and benefit from the DSS.
Architecture of DSS:
The user interacts with the DSS through the DGMS. This communicates with the DBMS and MBMS, which screen the user and the user interface from the physical details of the model base and database implementation.
Characteristics of DSS:
It is a management support system whose capabilities go beyond those of MIS.
It is only supportive in nature and human decision maker .
It is individual specific.
Extensively uses databases.
Also incorporates various mathematical, statistical and operations research models.
Helps decision makers to carry out “WHAT -IF” analysis.
It has extensive Querying capabilities where in they can be queried for various option.
Provides good user interfaces for decision makers.
CLASSES OF DSS
File Drawer Systems :
They are the simplest type of DSS
Can provide access to data items
Data is used to make a decision
ATM Machine
Use the balance to make transfer of funds decisions
Data Analysis Systems
Provide access to data
Allows data manipulation capabilities
Airline Reservation system
No more seats available
Provide alternative flights you can use
Use the info to make flight plans
Analysis Information Systems
Information from several files are combined
Some of these files may be external
We have a true “data base”
The information from one file, table, can be combined with information from other files to answer a specific query.
Accounting Models
Use internal accounting data
Provide accounting modeling capabilities
Can not handle uncertainty
Use Bill of Material
Calculate production cost
Make pricing decisions
Representational Model
Can incorporate uncertainty
Uses models to estimate the consequences of action that represent some non definitional characteristics of the system.
Can be used to augment the capabilities of Accounting models
Use the demand data to forecast next years demand
Use the results to make inventory decisions.
Optimization Systems
Used to estimate the effects of different decision alternative
Based on optimization models
Can incorporate uncertainty
Assign sales force to territory
Provide the best assignment schedule
Suggestion Systems
A descriptive model used to suggest to the decision maker the best action
A prescriptive model used to suggest to the decision maker the best action
May incorporate an Expert System
Use the system to recommend a decision
Ex: Applicant applies for personal loan
TYPE OF ANALYTICAL MODELING ACTIVITIES:
a) What-if analysis :
In what -if analysis ,an end user make change to variables or relationships among variables and observes the resulting changes in the values of other variables.
e.g What if we cut advertising by 10 percent? What would happen to sales?
b) Sensitivity Analysis :
Sensitivity analysis is a special case of what -if analysis The value of one variable is changed repeatedly and the resulting changes on other variables are observed.
e.g Let’s cut advertising by $100 repeatedly so we can see its relationship to sales.
C) Goal-seeking analysis :
Goal seeking analysis reverses the direction of the analysis done in what-if and sensitivity analysis .
Goal-seeking analysis set a target value for a variables , goal-seeking analysis sets a target value for a variables and then repeatedly changes other variables until the target value achieved.
e.g Let’s try increases in advertising until sales reach $ 1 million.
d) Optimisation analysis:
Optimization analysis is more complex extension of goal-seeking analysis.
The goal in optimisation analysis is to find the optimum value for one or more target variables, given certain constraints.Then one or more other variables are changed repeatedly ,subject to the specified constraints ,until the best value for the target variables are discovered.
e.g: what’s the best amount of advertising to have ,given our budget and choice media?
Examples of DSS applications:
Airline DSS:-
The American Analytical Information Management System(AAIMS) is a decision support system used in the airline industry.
AAIMS support a variety of airline decision by analyzing data collected on airline aircraft utilization , seating capacity and utilization and traffic statistics.
2. Geographic DSS:
Geographic information system(GIS) are a special category of DSS that integrate computer graphics and geographic databases and other DSS feature. A geographic information system is DSS that constructs and displays maps and other graphics displays that support decisions affecting the geographic distribution of peoples and resources