Section 6.5 Review Questions What is a spreadsheet? Spread sheet packages are easy-to-use implementation software for the development of a wide range of applications in business, engineering, mathematics, and science. Spreadsheets include extensive statistical, forecasting, and other modeling and database management capabilities, functions, and routines What is a spreadsheet add-in? How can add-ins help in DSS creation and use? Add-in packages for spread sheets are add itional software items that can be integrated into an existing spreadsheet application in order to expand and enhance the type of calculations that can be performed Explain why a spreadsheet is so conducive to the development of Dss Spreadsheets are very conducive to the development of dss because they are easy to implement and use for a large base of users. Out of the box they have a wide array of functions and tools. These abilities can be easily augmented through add-in packages and templates 6 Copyright C2018 Pearson Education, Inc
6 Copyright © 2018Pearson Education, Inc. Section 6.5 Review Questions 1. What is a spreadsheet? Spreadsheet packages are easy-to-use implementation software for the development of a wide range of applications in business, engineering, mathematics, and science. Spreadsheets include extensive statistical, forecasting, and other modeling and database management capabilities, functions, and routines. 2. What is a spreadsheet add-in? How can add-ins help in DSS creation and use? Add-in packages for spreadsheets are additional software items that can be integrated into an existing spreadsheet application in order to expand and enhance the type of calculations that can be performed. 3. Explain why a spreadsheet is so conducive to the development of DSS. Spreadsheets are very conducive to the development of DSS because they are easy to implement and use for a large base of users. Out of the box they have a wide array of functions and tools. These abilities can be easily augmented through add-in packages and templates
Section 6.6 Review Questions 1. List and explain the assumptions involved in LP. a limited quantity of economic resources is available for allocation The resources are used in the production of products or services There are two or more ways in which the resources can be used. Each is called a solution or a program Each activity (product or service) in which the resources are used yields a return in terms of the stated goal The allocation is usually restricted by several limitations and requirements called constraints List and explain the characteristics of LP measured by a common unit (e.g, dollars, utility/!at is, they can be Returns from different allocations can be compared The return from any allocation is independent of other allocations The total return is the sum of the returns yielded by the different activities All data are known with certainty The resources are to be used in the most economical manner Describe an allocation problem a typical allocation problem focuses around the most efficient use of a scarce resource Define the product-mix problem A typical product-mix problem focuses around the most efficient ratios of two or more products to be produced Define the blend ing problem a typical blending problem combines the issues of an allocation problem (scarcity) with the issues of a product-mix problem(ratios) Copyright C2018 Pearson Education, Inc
7 Copyright © 2018Pearson Education, Inc. Section 6.6 Review Questions 1. List and explain the assumptions involved in LP. • A limited quantity of economic resources is available for allocation. • The resources are used in the production of products or services. • There are two or more ways in which the resources can be used. Each is called a solution or a program. • Each activity (product or service) in which the resources are used yields a return in terms of the stated goal. • The allocation is usually restricted by several limitations and requirements, called constraints. 2. List and explain the characteristics of LP. • Returns from different allocations can be compared; that is, they can be measured by a common unit (e.g., dollars, utility). • The return from any allocation is independent of other allocations. • The total return is the sum of the returns yielded by the different activities. • All data are known with certainty. • The resources are to be used in the most economical manner. 3. Describe an allocation problem. A typical allocation problem focuses around the most efficient use of a scarce resource. 4. Define the product-mix problem. A typical product-mix problem focuses around the most efficient ratios of two or more products to be produced. 5. Define the blending problem. A typical blending problem combines the issues of an allocation problem (scarcity) with the issues of a product-mix problem (ratios)
L ist several on optimization models A (best matching of objects) Dyna programming Go Investment(maximizing rate of return) LI nd integer programming Network models for planning and scheduling Nonlinear programming Replacement(capital bud geting) Simple inventory models(e.g, economic order quantity) Transportation(minimize cost of shipments) Copyright C2018 Pearson Education, Inc
8 Copyright © 2018Pearson Education, Inc. 6. List several common optimization models. • Assignment (best matching of objects) • Dynamic programming • Goal programming • Investment (maximizing rate of return) • Linear and integer programming • Network models for planning and scheduling • Nonlinear programming • Replacement (capital budgeting) • Simple inventory models (e.g., economic order quantity) • Transportation (minimize cost of shipments)
Section 6.7 Review Questions List some difficulties that may arise when analyzing multiple goals In situations where multiple goals exist, it may be difficult to analyze and optimize for each of these goals. This is because the goals may be conflicting, hey may be more complex than they initially appear, and the importance of goals may vary depend ing on the stakeholder List the reasons for performing sensitivity analysis Sensitivity analysis is extremely important in prescriptive analytics because it allows flexibil ity and adaptation to changing conditions and to the requirements of different decision-making situations, provides a better understand ing of the model and the decision-making situation it attempts to describe, and permits the manager to input data to increase the confidence in the model 3. Explain why a manager might perform what-if analysis Managers may elect to perform a what-if analysis because they are very approachable and simple to run. They provide immediate feedback, and can be used over a wide variety of scenarios to get a general idea of what possible outcomes may be Explain why a manager might use goal seeking Managers may elect to perform a goal-seek analysis to find a specific numeric answer given a known set of variables and equations. This type of analysis is easy to perform and provides immediate feed back Copyright C2018 Pearson Education, Inc
9 Copyright © 2018Pearson Education, Inc. Section 6.7 Review Questions 1. List some difficulties that may arise when analyzing multiple goals. In situations where multiple goals exist, it may be difficult to analyze and optimize for each of these goals. This is because the goals may be conflicting, they may be more complex than they initially appear, and the importance of goals may vary depending on the stakeholder. 2. List the reasons for performing sensitivity analysis. Sensitivity analysis is extremely important in prescriptive analytics because it allows flexibility and adaptation to changing conditions and to the requirements of different decision-making situations, provides a better understanding of the model and the decision-making situation it attempts to describe, and permits the manager to input data to increase the confidence in the model. 3. Explain why a manager might perform what-if analysis. Managers may elect to perform a what-if analysis because they are very approachable and simple to run. They provide immediate feedback, and can be used over a wide variety of scenarios to get a general idea of what possible outcomes may be. 4. Explain why a manager might use goal seeking. Managers may elect to perform a goal-seek analysis to find a specific numeric answer given a known set of variables and equations. This type of analysis is easy to perform and provides immediate feedback