An Emerging Process of Building Models for Management Decision Makers

Cover An Emerging Process of Building Models for Management Decision Makers
An Emerging Process of Building Models for Management Decision Makers
Glen L Urban
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Tiiese first two classes are further divided into stochastic and deterministic sections. The third type of model is called"perceptive" because their major purpose is to reveal new insights for management. Examples are market structure models based on non-metric multidimensional scaling, information processing models, or organizational models. It should be noted that aggregate response and hierarchical models also help managers gain new insights by explicitly modeling the decision environment. T...he footnotes to Table one cite some specific examples of each type of model. The table does not name all existing types of models, but it is hoped that it contains the major model alternatives. Considering the development criteria, the choice of perceptive models is possible only if the criterion was to build a descriptive model, so the most difficult choice is between aggregate response and hierarchical models. The basic nature of a problem may clearly indicate one approach. For example, since people flow through a medical system, a sequential model is attractive.

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