Decision modeling describes the use of data and logic to clarify the specific nature of a situation for which assistance in the decision-making process may be needed. The hope is that in clarifying such details, the development of meaningful suggestions and solutions may be easier to create. Most management problems for which decisions are sought can be represented by three standard elements: objectives, decision variables, and cons-traints.

1. Objectives

2. Maximize profit

3. Provide earliest entry into market

4. Minimize employee discomfort and turnover

5. Decision variables

6. Determine what price to use

7. Determine the length of time tests should be run on a new product or service

8. Determine the responsibilities to assign to each worker

9. Constraints

10. Can't charge below cost

11. Must test enough to meet minimum safety regulations

12. Ensure responsibilities are shared by two workers at most

All of these elements can be visualized graphically, often to the benefit of analysis and general insights. Our initial discussion will be limited to objectives and decision variables; we'll discuss constraints further on in this chapter. In most business scenarios, managers are faced with making a set of decisions that impact a final outcome (objective). This tends to make the decision process more complex, and sometimes the rationale for making specific decisions is difficult to describe.