ORA M1-3

Question 1

The most important decision of a firm. These are usually taken by upper and middle level management. They relate to the policies of the firm or the strategic plan for the future

Answer 1

strategic decision

Question 2

a type of decision pertaining to the policy and planning of the firm known as the policy decisions. it is reserved for the firm’s top mngmt officials. they have long term impact on the firm and require great deal of analysis

Answer 2

Tactical decision

Question 3

____ are decisions necessary to put the policy decisions into ACTION. it implement plans and policies taken by the high level managers

Answer 3

operational decisions

Question 4

T or F

an ‘ideal’ option does
not usually exist, and therefore a compromise must be found.

Answer 4

T

Question 5

____ refer to making decisions in presence of multiple, usually conflicting criteria

Answer 5

MCDM

Question 6

___ are methods that have been developed to support the decision maker in their unique and personal decision process

Answer 6

MCDA

Question 7

____ relates to infinite number of alternatives

while ___ relates to a number of discrete alternatives

Answer 7

– MODM
– MADM

Question 8

___ are typical evaluating options where costs or price is usually the main criteria, and some measure of quality is typically another criterion

Answer 8

Conflicting criteria

Question 9

MCDA is useful for ___ decision into smaller and understandable parts, ____ each part, and ____ the parts to produce a meaningful solution

Answer 9

dividing
analyzing
integrating

Question 10

t or F
people and business always make their decision with single objectives

Answer 10

F. in multiple objectives

Question 11

2 multiple objective decisions makin difficult

Answer 11

– conflicting among criteria
– incommensurable units (not same units)

Question 12

MADM have 4 major components which are;

Answer 12

– alternatives
– attributes
– Weight of importance
– measure of alternatives

Question 13

T or F

problem identification is objective in nature

Answer 13

F. Subj. in nature dapat. HIGHLY SUBJECTIVE

Question 14

___ has been defined as an indication of the preferred direction of movement.

Answer 14

Objective

Question 15

____ is used to measure performance in relation to an objective

Answer 15

Attribute

Question 16

Attributes that are not directly related is known as ____

Answer 16

Proxy attribute

Question 17

T or F

Thus, objectives at the highest level are most specific and most operational

Answer 17

False. LOWEST LEVEL

which are the second level objectives

Question 18

____ measurable quantity whose value reflects the degree of achievement for a
particular objective / assigned to each sub-objective

Answer 18

attribute

Question 19

___ is required for decision making methods because data must be numerical and comparable. it allows for rating and ranking

Answer 19

Data normalization

Question 20

T or F

Non numeric Data should be converted into numerical data to allow normalization

Answer 20

T

Question 21

Choosing a sutiable ____ to ensure a common scale and appropriate modelling representation as well as comparibility on criteria’s aggregation to obtain alternative ratings

Answer 21

Nomalization technique

Question 22

simplest methods where all attributes are weighted according to their relative importance, SUM of weights must be equal to one.

Answer 22

WEIGHT ADDITIVE MODEL

Question 23

____ is the primary distinction that in this method, multiplication is performed

Answer 23

WEIGHT PRODUCT MODEL

Question 24

METHOD to avoid worst case scenario while maximizing the criterion with the lowest performance

Answer 24

Maximin Method

Question 25

METHOD chooses an alternative based on its best rather than worst attribute

Answer 25

Maximax method

Question 27

___ method requires that an alternative meet a minimum threshold for all attributes

Answer 27

Conjunctive method

Question 28

____ is a process of sequential elimination that is carried out either a single solution discovered or all problems are resolved

Answer 28

lexicographic analysis method

Question 29

Person(s), organization(s), or stakeholders to whom the decision problem under consideration belongs.

Answer 29

Decision Maker

Question 30

A factor over which the decision maker has control. ▪ The set of decision variables fully describe the problem and form the decision to be made. ▪ The purpose of the goal programming model can be viewed as a search of all the possible combinations of decision variable values (known as decision space) in order to determine the point which best satisfies the decision maker’s goals and constraints

Answer 30

Decision Variable

Question 31

▪ A single measure by which the goodness of any solution to a decision problem can be measured. ▪ There are many possible criteria arising from different fields of application such as costs, profit, time, distance, performance of a system, organizational strategies, and safety considerations.

Answer 31

Criterion

Question 32

The numerical value specified by the decision maker that reflects his/her desire or satisfactory level with regard to the objective function under consideration.

Answer 32

Aspiration Level

Question 33

▪ The difference between what we actually achieve and what we desire to achieve. ▪ There are two types of goal deviations which we refer to as deviational variables:

Answer 33

Goal deviation

Question 34

There are two types of constraints from all desired goals: 1. ______ – may influence but are not directly related to goals 2. ______ – directly related to goals

Answer 34

-- System constraints -- Goal constraints

Question 35

_____ - corresponds to goals which has been obtained by using the aspirations for the objective functions.

Answer 35

Soft Constraints

Question 36

___ - corresponding to the feasible region or the original constraints in which no violation is acceptable

Answer 36

Hard Constraints

Question 37

True or False An optimal solution is attained when all the goals are reached as close as POSSIBLE to their aspiration level, while satisfying a set of constraints.

Answer 37

True

Question 38

Non Pre-emptive Goal Programming has no Priority Levels

Answer 38

True