DECISION SUPPORT SYSTEM Presented By :- Gaurav Mittal

INTRODUCTION
A decision support system (DSS) is a computer-based information system that supports business or organizational decision-making activities. DSSs serve the management, operations, and planning levels of an organization and help to make decisions, which may be rapidly changing and not easily specified in advance. A decision support system (DSS) is a computer program application that analyzes business data and presents it so that users can make business decisions more easily. It is an "informational application Typical information that a decision support application might gather and present would be:

1.

Comparative sales figures between one week and the next. 2. The consequences of different decision alternatives, given past experience.

PROCESS OF DECISION MAKING

Decision making is regarded as a rational process in organizations therefore, Herbert A. Simon has given a model to describe the decisionmaking process. The model has three phases I. Phase 1 :- Intelligence;

II.

Phase2:-

Design ;
Choice;

III. Phase3:-

CONTD

Decision Making Phase

Intelligence Identify and define potential problems and/or opportunities . Design Develop alternative solutions to the problem. Choice Select a course of action.

CONTD..

Problem Solving Phase

Implementation Take action to put the solution into effect. Monitoring Evaluate the implementation of the solution.

Types Of Decisions
1. Programmed Decisions :- These Decisions are well defined and made using a specified procedure or some decision rule may be applied to reach a decision. The modern techniques involved in making of such decisions involve operations research ( OR), mathematical analysis, modeling and simulation, e.t.c. For example, inventory reorder decisions fall under this category.

2.

Non- Programmed Decisions :-These decisions are not well defined and have no pre-specified procedure or decision rule and can arise from unusual situations or unstructured decisions. For example, introduction of a new product, planning for R&D are unstructured decisions.

Components Of a Dss
I. Database :- The data in the database is typically a combination of master files ( internal corporate data ) and data from external sources. Model Base :- The second Component includes variety of models to manipulate and analyze the data. Dialogue Box:- A user interface is the third component. Through this, the user can communicate with the DSS. The physical interface generally consists of a terminal connected with the computer, either directly or by telephone.

II.

III.

Characteristics and Capabilities Of Dss

It provides support for decision makers in semi- structured and unstructured situation by bringing together human judgments and computer information. Support is provided to all managerial levels, ranging from top executives to line managers. Dss provides support to individuals as well as groups. It can provide support to several interdependent decisions. Dss supports all phases of the decision making process: intelligence, design, choice, and implementation.

Contd..
Dss are adaptive over time. Therefore, the user can add, delete, combine, change or rearrange according to changing conditions

The decision maker has complete control over all steps of the decision making process in solving a problem

Dss helps in improving the effectiveness of decision making ( accuracy, timeliness, quality ) rather than its efficiency ( the cost of making decisions ) with the help of a strong graphical capabilities and an english like interactive human machine interface.

Decision Support Systems- Why?

1) Fast Computation:- A decision maker can perform a large number of calculations very quickly and at a very low cost with the help of support systems. Enhanced Productivity :- Support systems can enhance the productivity of support staff and also enable the group members to discuss the problems among themselves. Data Transmission :- Sometimes the data, which may be stored at different locations , may be required to be transmitted quickly from distant locations. Support systems can search, store and transmit the required data quickly and economically.

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