Abstract
The business paradigms are changing amidst changing business environment. There are newer technologies at disposal, rising customer awareness and their expectations from the need to attain efficiency and effectiveness in business processes for survival and competitive advantage. This paper provides insights on the significance of business decision making and present state of organizations that are striving to achieve optimal utilization of limited business resources. The paper highlights the nature of linear programming model and its importance in effective business decision making. The business impact of model is illustrated in the case using the linear programming model and transportation method through excel solver in computer manufacturing firms to help in deciding optimum quantity to produce within limited resources and how the computers manufactured can be distributed to market places at minimal cost. The paper elicits the effectiveness of the linear programming model to realize good decision making in business by meeting the business objectives through optimal utilization of resources. It concludes that model driven decision support system enhances the productivity and profitability of the firm in a constrained environment and is a highly effective model for solving business problems.
Highlights
In this era of new technologies and growing competition it is essential that firms are focused on providing low cost and high quality products and services in order to survive and be successful
Decision-making is a very complex activity and in present scenario the constant need for optimal production plan required to minimize material cost, labour cost, and idle inventory and maximize the profits and growth by effective utilization of available resources creates the need of support system
Model management subsystem: It deals with the representation of the data, facts or figures in a specified manner
Summary
In this era of new technologies and growing competition it is essential that firms are focused on providing low cost and high quality products and services in order to survive and be successful. Decision Support System (DSS) helps in providing a computational model driven approach to formulate the optimal production plan for the manufacturing industry with preset objectives and goals by proper and precise estimation of the requirements so that no excess or shortage of raw materials. The use of model based interactive DSS (Opti link) in planning process aided planners in generating revenues by determining an optimal transportation. This optimal plan realized reduction in planning time to less than one and a half hours and helped in maximizing total sales by delivering contracts at computed upper bound prices (Derigs and Friederichs, 2009). Journal of Technology Management for Growing Economies, Volume 4, Number 2, Oct 2013
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