1 / 8

Enhancing Business Decision Modeling: Strategies for Effective Problem Solving

This chapter discusses the principles of Business Decision Modeling (BDM), focusing on applying scientific methods to solve management challenges for improved decision-making. Drawing from the insights of experts like Taylor, Lee, and Hillier, it defines BDM as the integration of management science, operations research, and quantitative analysis across various industries including banking, manufacturing, and healthcare. The chapter outlines a structured process for problem-solving that includes problem identification, modeling, solution evaluation, and implementation, highlighting its significance in a data-driven business environment.

leo-fox
Download Presentation

Enhancing Business Decision Modeling: Strategies for Effective Problem Solving

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Chapter 1 The Art and Science of Becoming a More Effective and Efficient Problem Solver

  2. What is Business Decision Modeling? • “The application of scientific approach to solving management problems in order to help managers make better decisions” - Taylor • “...the application of quantitative analysis to managerial decision making.” - Lee • “...operations research may be described as a scientific approach to decision making.” - Hillier and Lieberman • “Operations management is the study of decision making in the operations function.” - Schroeder

  3. QM, OR, OM? • Business Decision Modeling (BDM) can be referred to as all of the above: • Management science • Operations research • Quantitative analysis • Operations management • However, it is actually a process for solving problems • What type of problems? In what Industries?

  4. Banking Loan portfolio optimization Credit Card Management Manufacturing Quality Control Production Scheduling Entertainment Demand Forecasting Queuing/Crowd Control Airline/Travel Industry Ticketing/Reservations Airplane Maintenance Marketing Market Research Consumer Preferences Computer Science Software Development Simulation BDM is Used Extensively In

  5. Companies Using MS • SABRE Decision Technologies • airline reservation systems • Signet Bank, GE Capital, Providian, Capital One • credit card and financial management • CSX and Union Pacific Railroad • freight transportation • Ernst & Young, McKinsey, Accenture Consultants • business reengineering, forecasting, MIS

  6. BDM Process • Identification of the Problem • Definition of the Problem • Modeling of the Problem • Initial Model Solutions/Conclusions • Review and Iteration • Implementation • Feedback

  7. Variable expenses Fixed expenses Sales – = Total revenues = Total costs Break-Even Analysis • The break-even point occurs when

  8. Breakeven Revenue Total costs Fixed costs Break-Even Graph

More Related