CHAPTER 6

Decision Making

Decision Making

The process of identifying problems or opportunities, developing alternative solutions, and selecting a course of action.

Management Information System (MIS)

An integrated system providing the right information to the right person in the right format at the right time.

Decision Support Systems (DSS)

Systems used for unstructured problems, with characteristics like effectiveness and basic components.

Group Support Systems (GSS)

Systems aiding group decision-making with specific goals and distinguishing characteristics.

Programmed Decision

Decisions made using rules or procedures, easily computerized.

Optimization Model

A model finding the best solution to help an organization meet its goals.

Management Information Reports

Reports used by transportation coordinators to optimize shipping and solve bottlenecks.

Model Base

Part of a DSS allowing quantitative analysis on internal and external data.

Executive Support System (ESS)

Specialized DSS assisting senior-level executives with tailored support.

Geographic Information System (GIS)

System capable of storing, manipulating, and displaying geographically referenced information.

Corporate strategic plan

A comprehensive plan outlining an organization's long-term goals and objectives.

Data from the ERP system and TPS

Information collected from Enterprise Resource Planning systems and Transaction Processing Systems for decision-making.

Components of a DSS

The key elements of a Decision Support System include the database, model base, user interface, and links to external databases and networks.

Group support system (GSS)

A system that includes elements of a DSS and software to facilitate effective group decision-making.

Executive support systems (ESSs)

Specialized systems tailored for senior management, offering user-friendly interfaces, a wide range of resources, and the ability to handle internal and external data.