CHAPTER 2: DECISION MAKING

1. What refers to the process of selecting among alternatives representing potential solutions to a problem?

a) Decision-making
b) Choice-making
c) Planning
d) Tactic

2. It is the process of identifying and choosing alternative courses of action in a manner appropriate to the
demands of the situation.

a) Decision-making
b) Choice-making
c) Planning
d) Tactic

3. It exists when there is a difference between an actual situation and a desired situation.

a) Internal constraints
b) External constraints
c) Limitation
d) Problem

4. It refers to carrying out the decision so that the objectives sought will be achieved.

a) Implementation
b) Feedback
c) Strategy
d) Control

5. This term refers to evaluation of alternatives using intuition and subjective judgment.

a) Quantitative evaluation
b) Qualitative evaluation
c) Environmental evaluation
d) Articulating problem

6. This is an inventory model used for planned shortages.

a) Economic order quantity model

b) Production order quantity model
c) Quantity discount model
d) Back order inventory model
7. It refers to the process which requires checking at each stage of the process to assure that the alternatives
generated, the criteria used in evaluation, and the solution selected for implementation are in keeping
with the goals and objectives originally specified.

a) Implementation
b) Feedback
c) Strategy
d) Control

8. It is defined as the collection of past and current information to make predictions about the future.

a) Diagnosing problem
b) Forecasting
c) Regression analysis
d) Simulation

9. It refers to the rational way to conceptualize, analyze, and solve problems in situations involving limited,
or partial information about decision environment.

a) Decision theory
b) Sampling theory
c) Queuing theory
d) Theory of constraints

10. The following are examples of internal limitations EXCEPT.

a) Limited funds
b) Limited training of employees
c) Ill-designed facilities
d) Patents controlled by other organizations