BUS 220 Chapter Notes - Chapter 1: Fixed Cost, Scientific Method, Speedometer

• School: Stony Brook University
• Department: Business Management
• Course: BUS 220
• Professor: Shane Higuera

Document Summary

Problem solving goal is to find optimal solution (decision making process) Determine evaluation criteria: won"t restrict possible alternatives, if evaluate before thinking of alternatives then stop creativity. Want to maximize profit, minimize cost; constraints will limit you from achieving your objective. Management science/operations research/decision science = approach to decision making based on scientific method and quantitative analysis. Decision making = first 5 of problem solving process; ends w/ choosing of alternative. Single-criterion decision problems objective = find best solution. Decision = selecting one of your alternatives. Structuring problem first three steps of decision making process. Analyzing problem = last two steps of decision making process. Use quantitative because: complex problem, problem = especially important, problem is new = no prev experience, problem is repetitive. Models = representations of real objects/situations and can be presented in various forms. Analog models physical representation of often nonphysical measurements: speedometer of automobile; thermometer. Mathematical models usage of syst of symbols and math relationships.