Methods of handling multiple goals page 159

With some methods, the decision maker needs to search the solution space for an alternative that provides the required attainmemt of all goals while searching for an efficient solution.

Utility theory : Utility theory is an attempt to infer subjective value, or utility, from choices. Utility theory can be used in both decision making under risk (where the probabilities are explicitly given) and in decision making under uncertainty (where the probabilities are not explicitly given). More...

Goal programming : It can be thought of as an extension or generalisation of linear programming to handle multiple, normally conflicting objective measures. Each of these measures is given a goal or target value to be achieved. More...

Expression of goals as constraints

A points system

Linear Programming pge 154

Every LP problem is composed of:

• decision variables (who's values are unknown and are searched for),
• an objective function (a linear mathematical function that relates the decision variables to the goal, measures goal attainment, and is to be optimised),
• objective function coefficients (unit profit or cost coefficients indicating the contribution to the objective of one unit of a decision variable),
• constraints (expressed in the form of linear inequalities or equalities),
• capacities (upper, lower limits of variables), and
• input/output coefficients.

The components of DSS Mathematical problems page 151

All models are made up of four basic components. Mathematical relationships links these components together.

Result (outcome) variables

• Reflect the level of effectiveness of a system, ho well the system attains its goals. These variables are outputs.
• Considered dependant

Decision variable (pg 58, 152)

• Describes alternative courses of action. The decision mkaer controls the decision variables.

uncontrollable variables (or parameters)

• Factors that affect result varibales but are not under the control of the decision maker.
• Some of these variables limit the decion maker and therefore form what are called constraints of the problem.

intermediate result variables

• Reflect intermediate outcomes in mathematical models. eg. determining machine maintenance scheduling, spoilage, total profit, employee satisfaction