# Quiz 5: Decision Making

The first occasion for decision is when an individual is given an assignment to complete by a superior. Examples: • A manager assigning stress analysis calculation to an engineer. • A military officer ordering enlisted men to carry out an order. The second occasion is when an individual in a position of authority is handed a situation for review by a subordinate. Examples: • A Supreme Justice receiving a case to be reviewed. • A manager receiving a report that production is not being completed according to schedule. The third occasion for decision is when an individual in a position of authority decides to take the initiative to solve a problem. Examples: • An engineer designing a new automated method that speeds up production in a facility. • A programmer taking initiative to design a script to analyze large amounts of data in a short period of time. This category of decision-making is the most important because it challenges the decision-maker to create a positive change in the status quo without being given an impulse from outside. In other words, this is the opportunity for a professional to distinguish himself.

Linear programming model is used to obtain maximum profits, by utilizing minimum resources available. It helps the decision makers to take effective decisions by using the resources productively. It helps in minimizing cost of operations. It consists of objective function, model constraints and decision variables. Formulate the LPP to solve this problem graphically, first use the following constraint equations and plot a graph. The first equation represents the painting constraint. There is a total of 80 hours of painting available from the two painters in one week. The two variable b and t represent the number of blocks and trucks produced, respectively. The second equation represents the wood working constraint. Construct a graph using the following methodology as explained below: Consider B as x and T as Y for the coordinate calculation. Calculate coordinates for equation (1) as shown below: Step: 1 Calculate the coordinates for the equation (1) by assuming the value of y=0 shown as follows: Calculate the coordinates for the equation (1) by assuming the value of x=0 shown as follows: Therefore, the coordinates for the equation (1) are (40, 0) and (0,80). Calculate coordinates for equation (2) as shown below: Step: 1 Calculate the coordinates for the equation (2) by assuming the value of y=0 shown as follows: Calculate the coordinates for the equation (2) by assuming the value of x=0 shown as follows: Therefore, the coordinates for the equation (1) are (120, 0) and (0,40). Construct a graph by using the above coordinates as shown below: From the above graph, it can be identified that points O, D and B are in the feasible region. Notice the green region having coordinates of x 1 =24 and x 2 = 32, which satisfies the objective function as follows: Substitute the values of x 1 and x 2 in the objective function as shown below: Therefore, from the above graphical analysis it indicates that the optimal number of blocks is 24 , and the optimal number of trucks is 32. Solving the system of equations will give the same result.

a) Optimizing means making the best decision that gives most desirable results at most desirable cost. Sufficing means to make a decision that solves a problem , even though this decision may not be the most efficient way to solve the problem. b) A non-routine decision is a new situation that has not occurred before and involves a great deal of ambiguity and uncertainty. A routine decision is a common problem that is regularly solved by decision maker. This type of decisions involves very little uncertainty because decision maker is familiar with similar decisions.