DSS uses the summary ias 2 inventories questions and answers pdf, exceptions, patterns, and trends using the analytical models. A decision support system helps in decision-making but does not necessarily give a decision itself.
Programmed and Non-programmed Decisions There are two types of decisions – programmed and non-programmed decisions. These decisions have been taken several times. These decisions follow some guidelines or rules. For example, selecting a reorder level for inventories, is a programmed decision. It would be a new decision. There will not be any rules to follow.
These decisions are made based on the available information. These decisions are based on the manger’s discretion, instinct, perception and judgment. For example, investing in a new technology is a non-programmed decision. Decision support systems generally involve non-programmed decisions. Therefore, there will be no exact report, content, or format for these systems.
Reports are generated on the fly. Support for managers at various managerial levels, ranging from top executive to line managers. Less structured problems often requires the involvement of several individuals from different departments and organization level. Support for interdependent or sequential decisions.
Support for intelligence, design, choice, and implementation. Support for variety of decision processes and styles. Increases the control, competitiveness and capability of futuristic decision-making of the organization. Since it is mostly used in non-programmed decisions, it reveals new approaches and sets up new evidences for an unusual decision. To solve a problem the necessary data may come from internal or external database. In an organization, internal data are generated by a system such as TPS and MIS.
Model Management System: It stores and accesses models that managers use to make decisions. Such models are used for designing manufacturing facility, analyzing the financial health of an organization, forecasting demand of a product or service, etc. Classification of DSS There are several ways to classify DSS. Text Oriented DSS: It contains textually represented information that could have a bearing on decision. It allows documents to be electronically created, revised and viewed as needed.
Spreadsheet Oriented DSS: It contains information in spread sheets that allows create, view, modify procedural knowledge and also instructs the system to execute self-contained instructions. The most popular tool is Excel and Lotus 1-2-3. Solver Oriented DSS: It is based on a solver, which is an algorithm or procedure written for performing certain calculations and particular program type. Rules Oriented DSS: It follows certain procedures adopted as rules. Rules Oriented DSS: Procedures are adopted in rules oriented DSS.