CHAPTER 1 Introduction to Decision Support System by

CHAPTER 1 Introduction to Decision Support System by Simulation Model (Ajarn Chat Chuchuen) 1

1. 1 Decision Making and Business Decision Making n What is Decision Making ? n Business Decision Making ¨ ¨ ¨ ¨ Individual or Group Have Conflict objective Many Alternative Predictive Have risk Use What-If analysis to forecast Some case will use Trail-and-Error The environments have effect Decision Support System by Simulation Model (Ajarn Chat Chuchuen) 2

1. 2 Type of Problem n Structured Problem n Semistructured Problem n Unstructured Problem Decision Support System by Simulation Model (Ajarn Chat Chuchuen) 3

1. 3 Three Phase Decision-making Process (Simon) n Intelligence ¨ n Design ¨ n searching for conditions that call for decisions inventing, developing, and analyzing possible courses of action Choice ¨ selecting a course of action from those available Decision Support Systems and Intelligent Systems, Efraim Turban and Jay E. Aronson, 6 th edition. Decision Support System by. Upper Simulation Copyright 2001, Prentice Hall, Saddle River, NJ Model (Ajarn Chat Chuchuen) 4

The Decision-Making Process Systematic Decision-Making Process (Simon, 1977) n n Intelligence Design Choice Implementation (Figure 2. 2) Modeling is Essential to the Process Decision Support System by Simulation Model (Ajarn Chat. Efraim Chuchuen) Decision Support Systems and Intelligent Systems, Turban and Jay E. Aronson, 6 th edition, Copyright 2001, Prentice Hall, Upper Saddle River, NJ 5

1. 4 Type of Decision Making n 3 Main type of Decision Making ¨ Number of Decision Maker ¨ Structure of Problem ¨ Organization Level Decision Support System by Simulation Model (Ajarn Chat Chuchuen) 6

1. 4 Type of Decision Making n Number of Decision Maker ¨ Personal Decision ¨ Group Decision Support System by Simulation Model (Ajarn Chat Chuchuen) 7

1. 4 Type of Decision Making n Structure of Problem ¨ ¨ ¨ Structured Decision Semistrucured Decision Unstructured Decision Support System by Simulation Model (Ajarn Chat Chuchuen) 8

1. 4 Type of Decision Making n Organization Level ¨ ¨ ¨ Strategic Decision Management Control Decision Operational Decision Support System by Simulation Model (Ajarn Chat Chuchuen) 9

1. 5 Condition of Decision Making Decision Under Certainty Condition ¨ Decision Under risk Condition ¨ Decision Under Uncertainty Condition ¨ Decision Support System by Simulation Model (Ajarn Chat Chuchuen) 10

1. 6 Information System for Decision Making EIS MIS DSS Top Management Level Middle Management Level TPS OAS Decision Support System by Simulation Model (Ajarn Chat Chuchuen) Operational Level 11

1. 6 Information System for Decision Making n Reason for use IS ¨ Many Alternative ¨ Limitation time ¨ Have uncertainty environment ¨ Lack of expert ¨ Time to processing Decision Support System by Simulation Model (Ajarn Chat Chuchuen) 12

1. 7 Meaning and Evolution of DSS n Meaning of DSS Mr. Scott Morton (1971) ระบบททำงานรวมกบคอมพวเตอรโดยชวยผต ดสนใจเอาขอมล (Data) และแบบจำลอง (Model) มาแกปญหาแบบไมมโครงสราง (Unstructured Problem( ¨ Mr. Keen and Mr. Scott Morton (1978) Semistructure Problem ¨ Decision Support System by Simulation Model (Ajarn Chat Chuchuen) 13

1. 7 Meaning and Evolution of DSS n Evolution of DSS ¨ First phase evolution ¨ Second phase evolution ¨ Third phase evolution ¨ Fourth phase evolution ¨ Fifth phase evolution Decision Support System by Simulation Model (Ajarn Chat Chuchuen) 14

1. 8 Characters and Capability of DSS n 13 Characters and Capability of DSS ¨ Semistructured or Unstructured problems ¨ Support Middle and Top Manager ¨ Individual or group decision ¨ Discrete or Continuous Problem ¨ Support Decision Making Process ¨ Support verities of Decision Support System by Simulation Model (Ajarn Chat Chuchuen) 15

1. 8 Characters and Capability of DSS n 13 Characters and Capability of DSS ¨ High Flexibility ¨ User friendly ¨ Performance of DSS importance than cost for develop ¨ To support Decision process not make decision Decision Support System by Simulation Model (Ajarn Chat Chuchuen) 16

1. 8 Characters and Capability of DSS n 13 Characters and Capability of DSS ¨ Easy to develop by user (for small DSS) ¨ Have Model component ¨ Can access many input data Decision Support System by Simulation Model (Ajarn Chat Chuchuen) 17

1. 9 Benefit of DSS Develop efficiency of personal work ¨ Develop problem solving ¨ Help to commutations Groupware ¨ Emphasis to learning and practice ¨ More organization control Inventory control ¨ Decision Support System by Simulation Model (Ajarn Chat Chuchuen) 18

1. 10 Types of DSS n 4 Main type of DSS by output ¨ DSS by “ Holsapple and Whinston ” Idea ¨ DSS by User ¨ DSS by type of work ¨ Decision Support System by Simulation Model (Ajarn Chat Chuchuen) 19

1. 10 Types of DSS n DSS by output ¨ ¨ ¨ ¨ File Drawer System Data Analysis System Analysis Information System Accounting Model Representational Model Optimization System Suggestion System Decision Support System by Simulation Model (Ajarn Chat Chuchuen) 20

1. 10 Types of DSS n DSS by “ Holsapple and Whinston ” Idea ¨ Text-Oriented DSS ¨ Database-Oriented DSS ¨ Spreadsheet-Oriented DSS ¨ Solver-Oriented DSS ¨ Rule-Oriented DSS ¨ Compound DSS Decision Support System by Simulation Model (Ajarn Chat Chuchuen) 21

1. 10 Types of DSS n DSS by User ¨ ¨ ¨ Personal Support Group Support Organization Support Decision Support System by Simulation Model (Ajarn Chat Chuchuen) 22

1. 10 Types of DSS n DSS by type of work ¨ ¨ Custom-Made System Ready-Made System Decision Support System by Simulation Model (Ajarn Chat Chuchuen) 23

Question ? ? Decision Support System by Simulation Model (Ajarn Chat Chuchuen) 24