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 too called equally Quantitative Techniques. The managers working at lower-level of management brand these decisions.

Various Approaches or Techniques for making programmed decisions are:-

Decision Making Techniques.

1. Linear Programming

Linear Programming is a quantitative technique. It is used to create upwards one's heed how to distribute the express resources for achieving the objectives. Here, linear, agency the human relationship betwixt variables, as well as programming agency taking decisions systematically. Linear programming is used when ii 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 as well as 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 last seen at i glance. It is too 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 as well as sub-alternatives are shown equally branches as well as sub-branches. The director must written report all the alternatives real carefully as well as select the best alternative.

3. Game Theory

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

4. Simulation

Simulation technique is used to create upwards one's heed most complex problems. The number of the determination is observed inwards a fake province of affairs as well as non inwards a existent situation. For e.g. H5N1 companionship tin disclose out the effectiveness of its novel promotion past times outset showing it to few people earlier telecasting it on TV.

5. Queueing Theory

This technique is used to disclose solutions to the waiting listing problems inwards example of airline reservations, railway reservations, college admissions, etc. Queueing theory helps to disclose out the optimum number of service facilities required as well as the cost of these services. For e.g. H5N1 carry companionship may innovate to a greater extent than vehicles to acquit the passengers inwards the waiting list. This volition forbid the passengers from going to the competitor's company.

6. Network Techniques

Managers purpose network techniques similar PERT (Program Evaluation Review Technique) as well as CPM (Critical Path Method) for complex projects, where many activities cause got to last completed. With the assistance of these techniques, complex projects tin last completed equally per the schedule. Network techniques salvage fourth dimension as well as cost.

7. Probability Decision Theory

Probability Decision theory is based on the supposition that the hereafter is uncertain. There is a adventure that a sure as shooting lawsuit may or may non accept place. Based on available information as well as subjective sentence of the manager, diverse probabilities are assigned (given) to choice courses of activity (decision). The probable / possible outcomes of dissimilar alternatives are evaluated, as well as 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 last a combination of many alternatives or a unmarried alternative. For e.g. H5N1 director may create upwards one's heed to increase sales as well as 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.