INFORMATION PROCESSING AND PROGRAMMED DECISION SYSTEMS.
CARNEGIE INST OF TECH PITTSBURGH PA MANAGEMENT SCIENCES RESEARCH GROUP
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Programming decision processes through a computer-based operating system of decision rules has become common business practice today. In the design and development of programmed decision systems nearly every reported analysis contains the assumption that cost considerations associated with operating decisions and with information processing are mutually independent. For example, data processing costs are usually assumed independent of order quantity decisions in determining optimal rules for inventory control. When the normative analysis concerns the design of both decision-making procedures and information processing operations, the assumption of economic independence is highly suspect and typically results in sub-optimal solutions. The report presents a detailed sanalysis of decision and information processing systems design in the firm, based on aggregate production planning and computer dependent data processing. Numerical examples of optimal and approximately optimal systems are discussed. Author
- Administration and Management
- Operations Research
- Computer Programming and Software
- Computer Systems