Question

Answer the following questions

1- List some difficulties that may arise when analyzing multiple goals.

2. List the reasons for performing sensitivity analysis.

3. Explain why a manager might perform what-if analysis.

4. Explain why a manager might use goal seeking.

****Please Please No hand writing ,And answer all the questions not part of them.THANKYOU in advance

Answer 1

1

It is usually difficult to obtain an explicit statement of the organization's goals.

•    The decision maker may change the importance assigned to specific goals over time or for different decision scenarios.

•    Goals and sub-goals are viewed differently at various levels of the organization and within different departments.

•    Goals change in response to changes in the organization and its environment.

•    The relationship between alternatives and their role in determining goals may be difficult to quantify.

•    Complex problems are solved by groups of decision makers, each of whom has a personal agenda.

•           Participants assess the importance (priorities) of the various goals differently

2

Revising models to eliminate too-large sensitivities

•    Adding details about sensitive variables or scenarios

•    Obtaining better estimates of sensitive external variables

•    Altering a real-world system to reduce actual sensitivities

•    Accepting and using the sensitive (and hence vulnerable) real world, leading to the continuous and close monitoring of actual results

3 A manager might perform what-if analysis to find out what will happen if a particular action is taken. A manager might also perform what-if analysis to try out several alternatives, choosing the one that works out best.

4 Goal seeking: The goal seeking is a process of the evaluating the inputs values which is essential to accomplish the preferred output level. It is also known as the backward solution approach.

Example: • How many nurses are required to minimize the patient waiting time in emergency room to below 15 minutes?

Reason for using the goal seeking by manager: The reason for using the goal seeking by manager is given below:

• Manager might utilize the goal seeking process to discover the decision variable which permits to meet the predetermined condition.

• Manager uses the goal seeking to accomplish the preferred goal by evaluating the input values.

• For instance, manager wants to determine the budget for advertising the business. That is, it will reach the cost for house “A” is not above the $X amount.