Modern Techniques For Making Programmed Decisions

Modern Techniques for Programmed Decisions

A programmed determination is used to solve routine, repetitive precisely complex problems. These techniques are besides called equally Quantitative Techniques. The managers working at lower-level of management brand these decisions.

Various Approaches or Techniques for making programmed decisions are:-

Figure 1. Programmed Decision Making Techniques.

1. Linear Programming

Linear Programming is a quantitative technique. It is used to create upward one's heed how to distribute the express resources for achieving the objectives. Here, linear, agency the human relationship betwixt variables, in addition to programming agency taking decisions systematically. Linear programming is used when 2 or to a greater extent than activities are competing for express resources. For e.g. production mix decisions, inventory management decisions, etc. Linear programing is used for Agriculture, Industry, Contract biding in addition to Evaluation of tenders.

2. Decision Tree

A determination tree is a diagram which shows all the possible alternatives of a decision. All this information tin hold out seen at i glance. It is besides slow to understand. H5N1 determination tree is similar a horizontal tree. The base of operations of the tree is called the Decision Point. From this point, the dissimilar alternatives in addition to sub-alternatives are shown equally branches in addition to sub-branches. The managing director must written report all the alternatives really carefully in addition to select the best alternative.

3. Game Theory

A game is a province of affairs involving at to the lowest degree 2 people. Each persons determination is based on what he expects the other to do. Game theory is used for deciding nigh competitive pricing. For e.g. H5N1 companionship may increase the cost of its production when it feels that the rival may besides increase the price. For e.g. Pepsi volition increase its cost if it feels that Coca Cola volition besides increase its price. Here, both decisions- makers conform to each other's decisions.

4. Simulation

Simulation technique is used to create upward one's heed nigh complex problems. The result of the determination is observed inwards a imitation province of affairs in addition to non inwards a existent situation. For e.g. H5N1 companionship tin unwrap out the effectiveness of its novel promotion past times starting fourth dimension showing it to few people earlier telecasting it on TV.

5. Queueing Theory

This technique is used to unwrap solutions to the waiting listing problems inwards illustration of airline reservations, railway reservations, college admissions, etc. Queueing theory helps to unwrap out the optimum lay out of service facilities required in addition to the cost of these services. For e.g. H5N1 carry companionship may innovate to a greater extent than vehicles to demeanour the passengers inwards the waiting list. This volition foreclose the passengers from going to the competitor's company.

6. Network Techniques

Managers operate network techniques similar PERT (Program Evaluation Review Technique) in addition to CPM (Critical Path Method) for complex projects, where many activities cause got to hold out completed. With the aid of these techniques, complex projects tin hold out completed equally per the schedule. Network techniques salvage fourth dimension in addition to cost.

7. Probability Decision Theory

Probability Decision theory is based on the supposition that the hereafter is uncertain. There is a gamble that a certainly lawsuit may or may non cause got place. Based on available information in addition to subjective sentence of the manager, diverse probabilities are assigned (given) to choice courses of activeness (decision). The probable / possible outcomes of dissimilar alternatives are evaluated, in addition to the most probable choice is selected.

8. Payoff Matrix

Payoff matrix is a statistical technique, which helps managers to select the best alternative. H5N1 payoff is the render or vantage for selecting the best alternative. The best choice tin hold out a combination of many alternatives or a unmarried alternative. For e.g. H5N1 managing director may create upward one's heed to increase sales in addition to turn a profit past times increasing advertising, improving character of the product, reducing the price, etc. Each choice or a combination of alternatives may render an expected reward.