The limiting factor principle
Answer(s): A
The limiting factor principle is used in the decision-making process during the step involving identifying alternative courses of action. The crucial factor is the one that limits or prevents achievement of the desired goal. The mass of alternative choices can be reduced if managers can identify the limiting factors to a problem.
Determining what is ues must be addressed and considering the objectives of the desired course of action are accomplished during which step of the decision-making process?
Answer(s): B
During the step in the decision-making process of obtaining information, the decision maker determines which issues must be addressed, for example, whether to make or outsource a component. The decision maker also considers the objectives of the desired course of action, for example, to increase return on investment or to enter a new market.
Scenario development
Answer(s): D
Scenario development is a qualitative forecasting method that requires preparation of conceptual scenarios of future events given carefully defined assumptions. It entails writing multiple different but equally likely descriptions of future states.
Which method of indenting alternative courses of action is primarily designed to optimize performance of an activity at 2 minimum cost?
Value analysis is a methodical approach primarily designed to optimize performance of an activity at a minimum cost. Emphasis is on the cost-benefit criterion.
The operations research approach to evaluating solutions includes all of the following except
Answer(s): C
Operations research is an overall approach that applies a variedly of scientific and mathematical techniques. It involves the following: recognition of the complete system, including interrelationships, in which the problem operates; formulation of a mathematical model; testing of the model; and implementation of the optimal solution as produced by the model. Simulation requires the construction of a quantitative model.
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