Reference no: EM133150850

PLEASE ANSWER AND CITE REFERENCES IF POSSIBLE.

Cite a possible problem that might happen in business company/establishment. 

Write the answers following the steps on Problem Solving.

For the analyzing the problem portion, just make assumptions of the possible results. (bulleted form)

Notes:

Problem Solving and Decision Making

Steps on Problem Solving with Analytics

• 1. Recognizing a problem
• 2. Defining the problem
• 3. Structuring the problem
• 4. Analyzing the problem
• 5. Interpreting results and making a decision
• 6. Implementing the solution

Recognizing a Problem

• Problems exist when there is a gap between what is happening and what we think should be happening.
• For example, costs are too high compared with competitors.

Defining the Problem

• Clearly defining the problem is not a trivial task.
• Complexity increases when the following occur:
• - large number of courses of action
• - the problem belongs to a group and not an individual
• - competing objectives
• - external groups are affected
• - problem owner and problem solver are not the
• same person

- time limitations exist

Structuring the Problem

• Stating goals and objectives
• Characterizing the possible decisions
• Identifying any constraints or restrictions

Analyzing the Problem

• Analytics plays a major role.
• Analysis involves some sort of experimentation or solution process, such as evaluating different scenarios, analyzing risks associated with various decision alternatives, finding a solution that meets certain goals, or determining an optimal solution.

Interpreting Results and Making a Decision

• Models cannot capture every detail of the real problem
• Managers must understand the limitations of models and their underlying assumptions and often incorporate judgment into making a decision.

Implementing the Solution

• Translate the results of the model back to the real world.
• Requires providing adequate resources, motivating employees, eliminating resistance to change, modifying organizational policies, and developing trust.