Decision Support System

Chapter 1
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An Overview of DSS
DSS:couple of intellectual resources of
individuals with the capabilities of the
computer to improve the quality of decisions.
DSS: computer-based support system for
management decision makers who deal with
semi-structuredproblems.
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The Gorryand Scott-Morton
Classical Framework
Gorryand Scott-Morton (1971) proposed a two-dimensional
3x3 matrix.
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Simons Model
Decision-making phase:first part of problem-
solving process
Intelligence:potential problems or opportunities
are identified and defined
Design:alternative solutions to the problem are
developed
Choice: requires selecting a course of action
Implementation: adapting the selected course of
action to decision situation
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Simons Model
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How to solve these
problems?: Structured
Structured problem solved by Management
Science (MS) or Operation Research (OR).
Definethe problem
Classifythe problem into a standard category
Construct a model that describes the real-world
problem
Identify possible solutions to the modeled
problem and evaluate the solutions
Compare, choose and recommend a potential
solutionto the problem
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How to solve these
problems?: Structured
MS is based on mathematical modeling.
Computerized methodologies can find
solutions to the standard category models
quickly and efficiently.
Ex: Linear programming, non-linear
programming, integer, binary integer, mixed-
integer programming.
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How to solve these
problems?: Structured
Linear Programming: is a method to achieve the best
outcome(such as maximum profit or lowest cost) in
a mathematical model whose requirements are
represented by linear relationships.
Integer Programming: Rounding off is one way to
reach integer solution values, but it often does not
yield the best solution. An integer programming
solution can never be better than the solution to the
same LP problem. The integer problem is usually
worse in terms of higher cost or lower profit.
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Illustration of Linear
Programming
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Illustration of Linear
Programming
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How to solve these
problems?: Structured
Mixed-Integer Programming: may contain not
integer solution.
Binary Integer Programming: all solutions
must be in 0 or 1.
Non-linear Programming: Curve line as
representation of constraint.
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Illustration of Nonlinear
Programming
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Automated Decision
Systems (ADS)
ADSis a rule-based system that provides a
solution, usually in one functional area.
Auto-approve loan in banking system.
Auto-asking for supply in retail company.
Auto-determination of flight fare.
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ADS Framework
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ADS Implementation
In contrast with MS approaches which provide
model-basedsolution, ADS provide rule-
based.
At airlines industry, ADS is represented by
pricing ticket system. It has rules which auto
adjusting ticket price based on demand.
Ex: If only 70% of the seats on a flight from LA
to NY are sold 3 days prior to departure, offer
a discount of x% to nonbusiness travelers.
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How to solve these
problems?: Semi-structured
Semi-structuredproblem may require a
combination between standard procedure and
human judgment.
MS can still be used to solve this problem. MS
provide models for structured portion. The
unstructured one solved by providing not only
a single solution but also range of alternative
solutions, along with their potential impacts.
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How to solve these
problems?: Semi-structured
Goal Programming: More than 1 objective
function, therefore, it needs human judgment
to set weights.
Expert System: Extract human expert
knowledge to be implemented in computer
application (diagnosing activity).
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How to solve these
problems?: Unstructured
Unstructuredproblems can be only partially
supported by standard computerized
quantitative methods. Intuition and judgment
may play a large role in these types of
decisions.
Knowledge Management System: repository
to elicit and share knowledge in each users in
(knowledge-base).
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The Architecture
of DSS
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Knowledge
User Interfaces
Data Models
The Architecture
of DSS
Dataare the first component of the DSS
architecture. Data related to a specific
situation can be manipulated by using models.
Modelsare the second component.
If-then rules
Formula
Constraints
Fish-bone (open/closed loop)
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The Architecture
of DSS
Knowledgeis the third component which may
be existed or not (optional).
Usersare vital fourth component. Either
structured or semi-structured problems need
users involvement. Therefore, it should be
completed with user interfaces (fifth
component)
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Types of DSS
Model-oriented: used to generate a
recommended solution to a problem.
Data-oriented: support ad hoc reporting and
queries.
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Assignments
Individual task
Please write a paper which consists of
Name a problem in your daily life (with more than
3 times repetition).
Categorize it into structured, un-structured or
semi-structured.
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