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Ans1. The multi-tire structure can be shown by the following diagram

The students are required to elaborate on this.

Ans 2. DSS models can be classified as static or dynamic.

Static models take a single snapshot of a situation. During this snapshot everything occurs in a single
interval. For example, a decision on whether to make or buy a product is static in nature (see the Web Chapter
on Scott Housing's decision-making situation). A quarterly or annual income statement is static, and so is the
investment decision. Though it represents a year's operations, it occurs in a fixed time frame. The time frame
can be "rolled" forward, but it is nonetheless static. The same is true for the P&G decision-making problem
(Web Chapter). In the latter case, however, the impacts of the decisions may last over several decades. Most
static decision-making situations are presumed to repeat with identical conditions (as in the BMI linear
programming model described later). For example, process simulation begins with steady-state, which models
a static representation of a plant to find its optimal operating parameters. A static representation assumes that
the flow of materials into the plant will be continuous and unvarying. Steady-state simulation is the main tool
for process design, when engineers must determine the best trade-off between capital costs, operational costs,
process performance, product quality, environmental and safety factors.
Dynamic models represent scenarios that change over time. A simple example is a 5-year profit-and-loss
projection in which the input data, such as costs, prices, and quantities, change from year to year. Dynamic
models are time-dependent. For example, in determining how many checkout points should be open in a
supermarket, one must take the time of day intoconsideration, because different numbers of customers arrive
during each hour. Demands must be forecasted over time. The IMERYS model can be expanded to include
multiple time periods by including inventory at the holding tanks, warehouses, and mines. Dynamic
simulation, in contrast to steady-state simulation, represents what happens when conditions vary from the
steady state over time. There might be variations in the raw materials (e.g., clay) or an unforeseen (even
random) incident in some of the processes. This methodology is used in plant control design.

Ans 3. Current trends in modeling development of model libraries and solution technique libraries, build
a model of a model, integration of SCM, CRM, DSS etc. Explain more points in support of the above
explanation.
In commerce, supply chain management (SCM), the management of the flow of goods and
services, involves the movement and storage of raw materials, of work-in-process inventory, and of finished
goods from point of origin to point of consumption. Interconnected or interlinked networks, channels and
node businesses combine in the provision of products and services required by end customers in a supply
chain. Supply-chain management has been defined as the "design, planning, execution, control, and
monitoring of supply chain activities with the objective of creating net value, building a competitive
infrastructure, leveraging worldwide logistics, synchronizing supply with demand and measuring performance
globally."
customer relationship management (CRM) An organizational initiative whose objective is to properly deliver
various services to customers, ranging from Web-based call centers to loyalty programs, such as rewarding
frequent fliers.
electronic customer relationship management (e-CRM) Customer service, self-service web applications, sales
force automation tools, and analysis of customers' purchasing behaviors on the Internet initiatives that enable
an organization to more effectively respond to its customers' needs and to market to them on a one-to-one
basis.

Ans 4. All models are made up of three basic components: decision variables, uncontrollable variables
(and/or parameters), and result (outcome) variables. Mathematical relationships link these components
together. In nonquantitative models, the relationships are symbolic or qualitative. The results of decisions are
determined by the decision made (value of the decision variables), the factors that cannot be controlled by the
decision-maker (in the environment), and the relationships among the variables. The modeling process
involves identifying the variables and relationships among them. Solving a model determines the values of
these and the result variable(s). Result variables reflect the level of effectiveness of the system; that is, they
indicate how well the system performs or attains its goal(s). Result variables are considered dependent
variables. Intermediate result variables are sometimes used in modeling to identify intermediate outcomes. In
the case of a dependent variable, another event must occur first before the event described by the variable can
occur. Result variables depend on the occurrence of the decision and the uncontrollable independent variables.

Note: The student has to discuss the above diagram

Ans 5. A decision tree shows the relationships of the problem graphically and can handle complex
situations in a compact form. An alternative representation of the decision table is a decision tree. A decision
tree shows the relationships of the problem graphically and can handle complex situations in a compact form.
The basic idea behind a decision tree is that it recursively dividing the data until each division consists
entirely or primarily of examples of one class. Each non leaf node of the tree contains a split point which is a
test on one or more attributes and determines how the data to be divided further. Explain more points in
support of the above explanation.
Decision trees are used in classification and clustering methods. Decision trees break problems down into
increasingly discrete subsets, by working from generalizations to increasingly more specific information. A
decision tree can be defined as a root followed by internal nodes. Each node (including the root) is labeled
with a question. The arcs associated with each node cover all possible responses. Each response represents a
probable outcome

the decision tree renders the knowledge used to help diagnose the reasons behind an automobile not starting.
This problem can be described as a number of knowledge rules, for example:
RULE 1: IF the car does not start THEN check if the starter motor turns
RULE 2: IF the starter motor turns THEN check if there is fuel in the tank ELSE check that the headlights
work
RULE 3: IF headlights do not work THEN battery is flat ELSE there is a starter motor problem

Ans 6. SEARCH APPROACHES

When problem-solving, the choice phase involves a search for an appropriate course of action (among those
identified during the design phase) that can solve the problem. There are several major search approaches,
depending on the criteria (or criterion) of choice and the type of modeling approach used. These search
approaches. For normative models, such as mathematical programming-based ones, either an analytical
approach is used or a complete, exhaustive enumeration (comparing the outcomes of all the alternatives) is
applied. For descriptive models, a comparison of a limited number of alternatives is used, either blindly or by
employing heuristics. Usually the results guide the decision-maker's search.
ANALYTICAL TECHNIQUES
Analytical techniques use mathematical formulas to derive an optimal solution directly or to predict a certain
result. Analytical techniques are used mainly for solving structured problems, usually of a tactical or
operational nature, in areas such as resource allocation or inventory management. Blind or heuristic search
approaches are generally employed to solve more complex problems.
ALGORITH MS
Analytical techniques may use algorithms to increase the efficiency of the search. An algorithm is a step-by-
step search process (Figure 4.12) for obtaining an optimal solution. (Note: there may be more than one
optimum, so we say an optimal solution rather than the optimal solution.) Solutions are generated and tested
for possible improvements. An improvement is made whenever possible, and the new solution is subjected to
an improvement test based on the principle of choice (objective value found). The process continues until no
further improvement is possible. Most mathematical programming problems are solved by efficient
algorithms (see Armstrong, 2001). Web search engines use algorithms to speed up the search and produce
accurate results. Monika Henzinger developed the algorithms that Google uses in its searches. Google's
algorithms are so good that Yahoo pays $7 million annually to use them (see Patton, 2002/2003).
B L I N D SEARCH
In conducting a search, a description of a desired solution may be given. This is called a goal. A set of
possible steps leading from initial conditions to the goal is called the search steps. Problem-solving is done by
searching through the space of possible solutions. The first of these search methods is blind search. The
second is heuristic search, discussed in the next section. Blind search techniques are arbitrary search
approaches that are not guided. There are two types of blind searches: a complete enumeration, for which all
the alternatives are considered and therefore an optimal solution is discovered; and an incomplete, partial
search, which continues until a good-enough solution is found. The latter is a form of suboptimization.
H E U R I S T I C S E AR C H
For many applications, it is possible to find rules to guide the search process and reduce the amount of
necessary computations. This is done by heuristic search methods.

Ans 7. The DBMS includes databases that contain relevant data and is managed by database management
software through a data dictionary, supported by query and reporting facilities. Information is taken from both
internal and external data sources.
Correspondingly, the MBMS includes statistical, management science, or other quantitative models that
provide the systems analytical capabilities, and model management to coordinate their use. It contains a
model directory that parallels the data directory of the DBMS. Its model execution, integration, and command
processing facility corresponds to the query and reporting facilities of the DBMS in that it allows users to
access whatever models their requirements call for.
The functions of model base management system (MBMS) software are model creation using programming
languages, DSS tools and/or subroutines, and other building blocks; generation of new routines and reports;
model updating and changing-, and model data manipulation. The MBMS is capable of interrelating models
with the appropriate linkages through a database.
Ans 8. The Key capabilities and characteristics are represented by :

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The students are required to explain the above diagram.

Ans 9. In computing, a data warehouse (DW or DWH), also known as an enterprise data warehouse
(EDW), is a system used for reporting and data analysis, and is considered a core component of business
intelligence. DWs are central repositories of integrated data from one or more disparate sources.
Data Warehouse is a new paradigm specially intended to provide architecture and tools for business
executives to systematically organize, understand, and use their data to make strategic decisions.
Characteristics Subject oriented, non volatile, integrated and time variant. Explain each of them in detail.
Subject-oriented: A data warehouse is organized around major subjects, such as customer, supplier,
product, and sales. Rather than concentrating on the day-to-day operations and transaction processing of an
organization, a data warehouse focuses on the modeling and analysis of data for decision makers.
Integrated: A data warehouse is usually constructed by integrating multiple heterogeneous sources, such as
relational databases, flat files, and on-line transaction records.
Data cleaning and data integration techniques are applied to ensure consistency in naming conventions,
encoding structures, attribute measures, and so on.
Time-variant: Data are stored to provide information from a historical perspective (e.g., the past 510
years). Every key structure in the data warehouse contains, either implicitly or explicitly, an element of time.
Nonvolatile: A data warehouse always a physically separate store of data transformed from the application
data found in the operational environment.
Due to this separation, a data warehouse does not require transaction processing, recovery, and concurrency
control mechanisms. It usually requires only two operations in data accessing: initial loading of
data and access of data.

Ans 10. The major components of any data mining system are data source, data warehouse server, data
mining engine, pattern evaluation module, graphical user interface and knowledge base.

Some other notes

Classification of Decision Support System: Holsapple and Whinston (1996) classify DSS into the following
six frameworks: text oriented DSS, database-oriented DSS, spreadsheet-oriented DSS, solver-oriented DSS,
rule-oriented DSS, and compound DSS.
T E X T - O R I E N T E D DSS : Information (including data and knowledge) is often stored in a textual
format and must be accessed by decision-makers. Therefore, it is necessary to represent and process text
documents and fragments effectively and efficiently. A text-oriented DSS supports a decision-maker by
electronically keeping track of textually represented information that could have a bearing on decisions. It
allows documents to be electronically created, revised, and viewed as needed.
D A T A B A S E - O R I E N T E D D S S : In this type of DSS, the database organization plays a major role
in the DSS structure. Early generations of database-oriented DSS mainly used the relational database
configuration. The information handled by relational databases tends to be voluminous, descriptive, and
rigidly structured. A database-oriented DSS features strong report generation and query capabilities.
S P R E A D S H E E T - O R I E N T E D D SS : A spreadsheet is a modeling system that allows the user to
develop models to execute DSS analysis. These models not only create, view, and modify procedural
knowledge but also instruct the system to execute their self-contained instructions (macros).
S O L V E R - O R I E N T E D D SS : A solver is an algorithm or procedure written as a computer program
for performing certain computations for solving a particular problem type.
R U L E - O R I E N T E D D SS : The knowledge component of DSS described earlier includes both
procedural and inferential (reasoning) rules, often in an expert system format. These rules can be qualitative
or quantitative, and such a component can replace quantitative models or can be integrated with them.
C O M P O U N D D SS : A compound DSS is a hybrid system that includes two or more of the five basic
structures described earlier.

Normative and Descriptive approaches: Normative decision making uses models, or methods that have
perhaps previously been derived from models that tell a decision maker what he or she should do. These
prescriptive models are often developed by utilizing optimization methods. The technology of expert systems,
which will be discussed later in the book but which students may have seen elsewhere, derives them from the
rules of thumb used by recognized experts in the field of the decision.Normative models are those in
which the chosen alternative is demonstrably the best of all possible alternatives. To find it, one should
examine all the alternatives and prove that the one selected is indeed the best, which is what one would
normally want. This process is basically optimization. In operational terms, optimization can be achieved in
one of three ways:
Get the highest level of goal attainment from a given set of resources.
Find the alternative with the highest ratio of goal attainment to cost (e.g., profit per dollar invesied) or
maximize productivity.
Find the alternative with (he lowest cost (or smallest amount of other resources) that will meet an
acceptable level of goals.
Descriptive decision making uses models that tell a decision maker what-if. These are usually simulation
models. Descriptive decision-making model is the use of narratives to describe a decision-making situation. A
narrative is a story that, when told, helps a decision maker uncover the important aspects of the situation and
leads to better understanding and framing. It is extremely effective when a group is making a decision and can
lead to a more common frame.