Discuss about the Management Information Systems for Decision Making.
With the expanding utilization of data innovation and accessibility of outstanding information, business associations have a more notable requirement for examining information and utilizing this exploration to manage their choices. A data framework in light of decision model is known as a Decision Making System (DSS). A DSS utilizes the information living in spreadsheets as well as databases, models it, forms or breaks down it utilizing issue particular techniques, and helps the client in the basic leadership prepare through a graphical UI. In this report, the researcher explores the handiness and capacities of spreadsheet programming for building up a DSS. Spreadsheets are an incredible alternative for creating numerous DSS applications since they are accessible with any operational framework and have many elements that are moderately simple to learn and can be executed for a vast assortment of issues.
In specific, this represents the findings using information provided by the Mable Hotel and provide recommendation with justification regarding their expansion decision.
According to the given information, the Mable Hotel is a family possessed and worked business. The family likewise possesses an adjoining 5,900 square meter bundle of land. They need to assemble another wing of units and a parking area on the land. The reason is that in recent time, the area become highly prevalent with holidaymakers. Hence extending the existing hotel operation through establishing new units will enhance the profitability position. At the same time, the owners are also raised their concern that the restaurant exists along side the hotel mostly remain un occupied because of the availability of large capacity (Haz?r, 2015). According to them, establishing new hotel unit will improve the occupancy rate and thus the restaurant capacity will also be utilized.
Under such circumstances, the Mable Hotel has following two options:
(1) Add a new wing, or (2) Add a slightly smaller new wing and a swimming pool.
The researcher here established a spreadsheet based decision support system, which will lend supportive hand towards the Mable Hotel owner to opt for the most feasible one.
Benefits associated with creating a Decision Support System Solver is a piece of a suite of capacities infrequently called imagine a scenario where investigation apparatuses utilized for enhancing issues that contain more than one variable (Sauter, 2014). The Solver include utility is expected to dissect the situations in basic leadership circumstances that include thought of qualities and imperatives for a few factors at the same time. This effective capacity utilizes numerous changing factors and requirements to locate the ideal answer for take care of an issue (Serrano-Cinca, and Gutiérrez-Nieto, 2013). Here, the basic aim of this study was to identify which one of the given two options is better and what will be the net income over the next 10 years period. Thus, it can be said that maximization of overall net income satisfying all the constraints given by the management of Mable Hotel was the primary concern. The researcher has used Microsoft Excel Solver tool helped in this matter.
The Basic Process/Tools
Prior to use the solver model, the researcher had to identify input, constraint and objective variables. In both cases, the researcher had to identify the number of single units, number of double units and number of family units needs to be built in the new wing so that the hotel can get maximum revenue (Aydin et al. 2015). Hence, the number of single units, number of double units and number of family units are decision or objective variables. At the same time, the constraints such as maximum and minimum land usage restriction, minimum number of each units, maximum number of total units etc. were defined to build the base case process model. Here, the excel model has been classified under four sections. The first section provides constants provided by the management. The model has been prepared in such a way that if the management wants any changes in the given proposals; only they have to modify the constants table with proper information (Daas et al. 2013).
The second section is the changes section, where, number each units has been identified through solver model. Third section of this study was calculation of all costs as well as revenues. This section is totally excel formula based. Hence, the respected cells will automatically modified if the management makes any changes in the constants later on. The final section of this model is 10 year income statement. In case of extended model, the same has been followed with few modification in the constant section considering the swimming pool construction.
Model driven or information driven DSS are the most well-known sorts of DSS one would consider creating utilizing a spreadsheet package. Spreadsheets appear to be particularly proper for building a DSS with lesser accessibility. A developer would then include catches, spinners and different instruments to provide supportive hand towards the decision maker in terms of "what if" and scenario analysis. An information driven DSS can likewise be actualized utilizing a spreadsheet. An expansive informational collection can be downloaded to the DSS application from a DBMS, a site or a delimited level record. At that point rotate tables and outlines can be produced to help a chief condense and control the information.
Spreadsheet-based DSS can be made in a solitary client or a multiuser improvement condition. Microsoft Excel is unquestionably the most famous spreadsheet application, which can be used as a DSS. Decision Support Systems help in different basic management circumstances by using models. It enables the researcher to examine data in a wide range of ways. The models has been included in a Decision Support System rely on upon the choice you are making and, therefore, the sort of examination you require. For instance, one would exploit an imaginary scenario in which it needs to perceive what impact the change in at least one factors will have on different factors, or enhancement to locate the most productive arrangement given working confinements and constrained assets. Spreadsheet programming, for example, exceed expectations can be utilized as a Decision Support System for considering the possibility that examination. It is therefore brings about higher fulfillment among chiefs, decreases dissatisfactions among them, and shape observations that predominant data is being utilized. They pick up a certainty and fulfillment that they are great leaders.
Benefits Associated with creating a Decision Support System
Creation of decision support system has numerous benefits towards the business organization. This DSS not only smoothen the operation process, but also at the same time, it strengthens the decision it makes on daily basis (Sauter, 2014). Below are some benefits that DSS have in the contemporary marketplace:
- Enhances execution and adequacy of the client;
- Takes into consideration facts that help in effective decision making;
- Diminishes the time taken to tackle issues ;
- Consolidate information in a best possible way to spare budget!
- Has been believed to enhance cooperation and correspondence inside gatherings
- Diminishes preparing times on the grounds that the experience of specialists is accessible inside the projects calculations
- Gives more confirmation in support of a choice
- May improves decision makers confidence
- Giving alternate points of view to a circumstance
- Robotizes different business frameworks
After running the excel solver model for both cases, the answer report were generated. The results have been summarized in the below mentioned table:
Add a new wing
Add a slightly smaller new wing and a swimming pool
The above mentioned table has shown the number of each units needs to be constructed and total net income considering all aspects were satisfied. If the monetary benefit only is taken into consideration, the straightway option 2, that is, add a slightly smaller new wing and a swimming pool needs to be constructed.
However, while executing feasibility analysis, the decision should not be taken based on financial performance. Factors like economic benefits, customer satisfaction, environmental are also equally essential (Sauter, 2014). Now, in this specific case, it has seen that the holiday makers are keen to visit this place. Hence, economically both the model is viable as there is a chance of increasing productivity. However, establishing swimming pool though reduced the number of units needs to be constructed; it will attract the customer in a better way. In other words, the customer will be attracted through constructing swimming pool. Hence, the option 2 fulfils both the economic as well as customer satisfaction aspect. In addition, there was no such environmental hazards and thus, in terms of environmental aspect, both the options are feasible. Finally, considering all other factors along with financial information, it can be concluded that option 2, that is, add a slightly smaller new wing and a swimming pool needs to be constructed.
Aydin, N.Y., Zeckzer, D., Hagen, H. and Schmitt, T., 2015. A decision support system for the technical sustainability assessment of water distribution systems. Environmental Modelling & Software, 67, pp.31-42.
Daas, D., Hurkmans, T., Overbeek, S. and Bouwman, H., 2013. Developing a decision support system for business model design. Electronic Markets, 23(3), pp.251-265.
Haz?r, Ö., 2015. A review of analytical models, approaches and decision support tools in project monitoring and control. International Journal of Project Management, 33(4), pp.808-815.
Salam, M.A. and Khan, S.A., 2016. Simulation based decision support system for optimization: a case of thai logistics service provider. Industrial Management & Data Systems, 116(2), pp.236-254.
Sauter, V.L., 2014. Decision support systems for business intelligence. John Wiley & Sons.
Serrano-Cinca, C. and Gutiérrez-Nieto, B., 2013. A decision support system for financial and social investment. Applied Economics, 45(28), pp.4060-4070.
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