Applications of Decision Support Systems:
DSSs are very useful in analytical modeling. The four basic types of analytical modeling supported by DSS are what-if analysis, goal seeking analysis, sensitivity analysis, and optimization analysis. These are discussed here.
What-if analysis
End users can make use of what-if analysis to make changes in the variables or in the relationship amongst variables and observe the changes. The what-if analysis is used for analyzing the various possibilities and deriving an appropriate strategy for each situation. For example, the change in revenue can be studied by changing the tax rate. As we have discussed earlier in Chapter 4, managers generally use such an analysis to observe and evaluate changes. For instance, the what-if analysis is used for finding out the effect of a 5% reduction in advertising on sales.
Goal seek analysis
Goal seek analysis is the reverse of what-if-analysis. In goal-seek, the target is fixed and changes are made to the related variable so that the target is achieved. For example, if the net profit is fixed at Rs. 100 million, changes can be made to the expenses and revenues such that the net profit is achieved. This is another important decision support tool. MS Excel is generally used for conducting goal seek analysis.
Sensitivity analysis
Sensitivity analysis can be considered as a type of what-if analysis in which the effect of a repeated change in a single variable is examined. Using this analysis, one can find out the impact of a single variable on other variables. It is useful when the user is not sure about the value of a key variable. There are a few DSS packages that automatically and repeatedly make minor changes to the variables. For example, the tax rate can be changed repeatedly to observe how the revenues are affected. Sensitivity analysis is used to find out how a continuous reduction in advertising expenditure has an effect on sales. Scenario, a what-if analysis tool in MS Excel is used for conducting sensitivity analysis.
Optimization analysis
Optimization analysis is a complex extension of goal seeking. In optimization analysis, the target is not fixed. Rather, thetarget needs to be arrived at after taking into consideration the constraints involved in achieving the targets. In this analysis, one or more variables are changed after taking the constraints into account until the best alternative or the optimal value is found. Optimization analysis would require special purpose software and techniques like linear
programming. For instance, optimization analysis is used for finding out the optimum amount of advertising that could be used with the given constraints of budget and the media. Solver, a what-if analysis tool in MS Excel is used for conducting optimization analysis.
Email based Information technology and system assignment help - homework help at Expertsmind
Are you searching Computer science expert for help with Applications of Decision Support Systems questions? Applications of Decision Support Systems topic is not easier to learn without external help? We at www.expertsmind.com offer finest service of Information technolgy and system assignment help and Information technology homework help. Live tutors are available for 24x7 hours helping students in their Applications of Decision Support Systems related problems. We provide step by step Applications of Decision Support Systems question's answers with 100% plagiarism free content. We prepare quality content and notes for Applications of Decision Support Systems topic under Information technology theory and study material. These are avail for subscribed users and they can get advantages anytime.
Why Expertsmind for assignment help
- Higher degree holder and experienced experts network
- Punctuality and responsibility of work
- Quality solution with 100% plagiarism free answers
- Time on Delivery
- Privacy of information and details
- Excellence in solving Information Technolgoy and system queries in excels and word format.
- Best tutoring assistance 24x7 hours