TYPES OF DSS
TYPES OF DSS
1. Status inquiry system: the number of decisions in the operational management and the same at the middle management is such that they are based on one or two aspects of a decision-making situation. It does not call for any elaborate computations, analysis, choice, etc. for decision-making. If the status is known, the decision is automatic. i.e., the status and solution is unique relation.
2. Data analysis system: these decision systems are based on cooperative analysis, and use of a formula or an algorithm. But, these processes are not structured and, therefore vary. The cash flow analysis, the inventory analysis, and the personal inventory systems are examples of the analysis systems. The use of simple data processing tools and business rules are required to develop this system.
3. Information analysis system: in this system, the data is analyzed and information reports are generated. The reports might be having exemptions as a feature. The decision makers use these reports for assessment of the situation for decision-making. The sales analysis, the account receivable system, the market research analysis, the MRP systems are examples of this system.
4. Accounting systems: these systems are not necessarily for decision making but they are desirable to keep track of the major aspects of the business as a function. The contents of these systems are more data processing leading to formal reporting, with exemptions, if necessary. These systems account items such as cash, inventory, and personnel and so on and relate it to a norm or norms developed by the management, for control and decision.
5. Model-based systems: these systems are simulation models or optimization models for decision making. These decisions, generally, are onetime and infrequent and provide general guidelines for operation or management. The product mix decision, the material mix, the job scheduling rules, and the resource or asset or facilities planning system.
SOME IMPORTANT FACTS
Ø The DSS is developed by the users and systems analysts jointly.
Ø The DSS uses the principles of economics, science, and engineering and also tools and techniques of management
Ø The data used in the DSS is drawn from the information systems developed in the company.
Ø The decision support systems are developed in isolation and form an independent system subset of the MIS.
Ø The most common use of the DSS is to test the decision alternatives and also to test the sensitivity of the result to the change in the system and assumptions.
Ø The data and information for the DSS are used from the internal sources such as the database and conventional files, and from the external sources.
