Rational Decision Making Procesexercise

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MGS 4301 Managerial Decision Making SUMMER 2020

RATIONAL DECISION-MAKING PROCESS SAMPLE EXERCISE

What is a problem? A problem is a discrepancy between an existing and a desired condition.

Step 1: Identify the problem


Amanda is a sales manager whose sales representatives need new laptops because their old ones are outdated and
inadequate for doing their job.
The problem: The disparity between the current computers (current condition) and their need to have more efficient
ones (desired condition).

Step 2: Identify the decision criteria


Amanda decides after careful consideration that memory and storage capabilities, display quality, battery life, warranty,
and carrying weight are relevant criteria in her decision.

Step 3 Allocate weights to the criteria

Memory and Storage 10


Battery Life 8
Carrying weight 6
Warranty 4
Display quality 3

Step 4: Develop alternatives


Our sales manager, Amanda, identifies seven laptops as possible choices.

Step 5: Rate each alternative


Memory and Carrying Display
Battery Life Warranty
storage weight Quality
HP ProBook 10 3 10 8 5
Lenovo IdeaPad 8 5 7 10 10
Apple MacBook 8 7 7 8 7
Toshiba Satellite 7 8 7 8 7
Apple Mac
8 3 6 10 8
BookAir
Dell Inspiron 10 7 8 6 7
HP Pavilion 4 10 4 8 10

Step 6: Compute the optimal decision *

Memory and Carrying Display Total


Battery Life Warranty
storage weight Quality
HP ProBook 100 24* 60 32 15 231
Lenovo IdeaPad 80 40 42 40 30 232
Apple MacBook 80 56 42 32 21 231
Toshiba Satellite 70 64 42 32 21 229
Apple Mac 204
80 24 36 40 24
BookAir
Dell Inspiron 100 56 48 24 21 249
HP Pavilion 40 80 24 32 30 206
*. For example, HP ProBook Battery life, is computed as follows weight (8)* Rate(3)= 24

International University of Grand-Bassam

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