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Business Analytics Study Guide

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Business Analytics Study Guide

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25 Questions

1. STEPS:

1) Find best outcome for each state of nature 2) Subtract the best column value from other values in the same column 3) Determine the maximum opportunity loss for each decision, and choose the decision with the smallest of theseCustomer can penetrate into the system with a large degree of customer contact - Customer has influence on service system / provision - System is reactive to customer needs - Customer gets Face to face total customization, Face to face loose specifications (Ex: Full restaurant where can alter dishes) Ex: Medical services Choose the decision alternative with the best of the worst possible payoffs (Minimax for minimization problems or Maximin for maximization problems)Random (Common cause) variation - Assignable (Special cause) variation

2. Reactive System

Choose the decision alternative with the best of the worst possible payoffs (Minimax for minimization problems or Maximin for maximization problems)1) Find best outcome for each state of nature 2) Subtract the best column value from other values in the same column 3) Determine the maximum opportunity loss for each decision, and choose the decision with the smallest of theseCustomer can penetrate into the system with a large degree of customer contact - Customer has influence on service system / provision - System is reactive to customer needs - Customer gets Face to face total customization, Face to face loose specifications (Ex: Full restaurant where can alter dishes) Ex: Medical services Random (Common cause) variation - Assignable (Special cause) variation

3. Conservative (Pessimistic) Strategy

Choose the decision alternative with the best of the worst possible payoffs (Minimax for minimization problems or Maximin for maximization problems)Customer can penetrate into the system with a large degree of customer contact - Customer has influence on service system / provision - System is reactive to customer needs - Customer gets Face to face total customization, Face to face loose specifications (Ex: Full restaurant where can alter dishes) Ex: Medical services 1) Find best outcome for each state of nature 2) Subtract the best column value from other values in the same column 3) Determine the maximum opportunity loss for each decision, and choose the decision with the smallest of theseRandom (Common cause) variation - Assignable (Special cause) variation

4. Two types of Variation

Random (Common cause) variation - Assignable (Special cause) variation1) Find best outcome for each state of nature 2) Subtract the best column value from other values in the same column 3) Determine the maximum opportunity loss for each decision, and choose the decision with the smallest of theseChoose the decision alternative with the best of the worst possible payoffs (Minimax for minimization problems or Maximin for maximization problems)Customer can penetrate into the system with a large degree of customer contact - Customer has influence on service system / provision - System is reactive to customer needs - Customer gets Face to face total customization, Face to face loose specifications (Ex: Full restaurant where can alter dishes) Ex: Medical services

5. Lead time

1) Find best outcome for each state of nature 2) Subtract the best column value from other values in the same column 3) Determine the maximum opportunity loss for each decision, and choose the decision with the smallest of theseCustomer can penetrate into the system with a large degree of customer contact - Customer has influence on service system / provision - System is reactive to customer needs - Customer gets Face to face total customization, Face to face loose specifications (Ex: Full restaurant where can alter dishes) Ex: Medical services The amount of time between placing and receiving an order (Lower is better)Choose the decision alternative with the best of the worst possible payoffs (Minimax for minimization problems or Maximin for maximization problems)

6. Information is...

Choose the decision alternative with the best of the worst possible payoffs (Minimax for minimization problems or Maximin for maximization problems)Data that has been organized and processed to be useful to someone | Also, any info that reduces uncertainty1) Find best outcome for each state of nature 2) Subtract the best column value from other values in the same column 3) Determine the maximum opportunity loss for each decision, and choose the decision with the smallest of theseCustomer can penetrate into the system with a large degree of customer contact - Customer has influence on service system / provision - System is reactive to customer needs - Customer gets Face to face total customization, Face to face loose specifications (Ex: Full restaurant where can alter dishes) Ex: Medical services

7. Parts of systems

Boundaries (define what is in and out of a system) - Feedback (When output becomes and input)1) Find best outcome for each state of nature 2) Subtract the best column value from other values in the same column 3) Determine the maximum opportunity loss for each decision, and choose the decision with the smallest of theseCustomer can penetrate into the system with a large degree of customer contact - Customer has influence on service system / provision - System is reactive to customer needs - Customer gets Face to face total customization, Face to face loose specifications (Ex: Full restaurant where can alter dishes) Ex: Medical services Choose the decision alternative with the best of the worst possible payoffs (Minimax for minimization problems or Maximin for maximization problems)

8. How can you make a decision variable with a non-zero reduced cost worth producing?

1) Find best outcome for each state of nature 2) Subtract the best column value from other values in the same column 3) Determine the maximum opportunity loss for each decision, and choose the decision with the smallest of theseCustomer can penetrate into the system with a large degree of customer contact - Customer has influence on service system / provision - System is reactive to customer needs - Customer gets Face to face total customization, Face to face loose specifications (Ex: Full restaurant where can alter dishes) Ex: Medical services Choose the decision alternative with the best of the worst possible payoffs (Minimax for minimization problems or Maximin for maximization problems)Increase its objective function coefficient by at least the reduced cost

9. The Expected Value Approach

Customer can penetrate into the system with a large degree of customer contact - Customer has influence on service system / provision - System is reactive to customer needs - Customer gets Face to face total customization, Face to face loose specifications (Ex: Full restaurant where can alter dishes) Ex: Medical services 1) Find best outcome for each state of nature 2) Subtract the best column value from other values in the same column 3) Determine the maximum opportunity loss for each decision, and choose the decision with the smallest of theseChoose the decision alternative with the best of the worst possible payoffs (Minimax for minimization problems or Maximin for maximization problems)Decision strategy with outcome probabilities - Choose decision alternative with highest expected value (for maximization problems) or lowest expected value (for minimization problems)

10. Data is...

Customer can penetrate into the system with a large degree of customer contact - Customer has influence on service system / provision - System is reactive to customer needs - Customer gets Face to face total customization, Face to face loose specifications (Ex: Full restaurant where can alter dishes) Ex: Medical services Choose the decision alternative with the best of the worst possible payoffs (Minimax for minimization problems or Maximin for maximization problems)Raw Facts1) Find best outcome for each state of nature 2) Subtract the best column value from other values in the same column 3) Determine the maximum opportunity loss for each decision, and choose the decision with the smallest of these

11. More things about Process Types / Process Selection

There is a trade off between volume and variety (You cannot have low volume low variety, high volume high variety) - Be able to classify different processes as being Job shop, bath, repetitive, continuous, or project process - Volume Rank (Job Shop < Batch < Repetitive < Continuous) - Variety Rank (Continuous < Repetitive < Batch < Job Shop)Customer can penetrate into the system with a large degree of customer contact - Customer has influence on service system / provision - System is reactive to customer needs - Customer gets Face to face total customization, Face to face loose specifications (Ex: Full restaurant where can alter dishes) Ex: Medical services Choose the decision alternative with the best of the worst possible payoffs (Minimax for minimization problems or Maximin for maximization problems)1) Find best outcome for each state of nature 2) Subtract the best column value from other values in the same column 3) Determine the maximum opportunity loss for each decision, and choose the decision with the smallest of these

12. Information Precision

1) Find best outcome for each state of nature 2) Subtract the best column value from other values in the same column 3) Determine the maximum opportunity loss for each decision, and choose the decision with the smallest of theseChoose the decision alternative with the best of the worst possible payoffs (Minimax for minimization problems or Maximin for maximization problems)Customer can penetrate into the system with a large degree of customer contact - Customer has influence on service system / provision - System is reactive to customer needs - Customer gets Face to face total customization, Face to face loose specifications (Ex: Full restaurant where can alter dishes) Ex: Medical services Maximum accuracy represented by data values - Sometimes too much precision can be inefficient and less precision is preferred

13. Niche Strategy

Customer can penetrate into the system with a large degree of customer contact - Customer has influence on service system / provision - System is reactive to customer needs - Customer gets Face to face total customization, Face to face loose specifications (Ex: Full restaurant where can alter dishes) Ex: Medical services 1) Find best outcome for each state of nature 2) Subtract the best column value from other values in the same column 3) Determine the maximum opportunity loss for each decision, and choose the decision with the smallest of theseChoose the decision alternative with the best of the worst possible payoffs (Minimax for minimization problems or Maximin for maximization problems)A business strategy that targets the unique needs of a specific market segment

14. When calculating the alternative solution, the objective function for the second model must just be positive in order for the new solution to be valid

Customer can penetrate into the system with a large degree of customer contact - Customer has influence on service system / provision - System is reactive to customer needs - Customer gets Face to face total customization, Face to face loose specifications (Ex: Full restaurant where can alter dishes) Ex: Medical services Choose the decision alternative with the best of the worst possible payoffs (Minimax for minimization problems or Maximin for maximization problems)1) Find best outcome for each state of nature 2) Subtract the best column value from other values in the same column 3) Determine the maximum opportunity loss for each decision, and choose the decision with the smallest of theseThis is because the constraint making the objective function value equal to the optimal solution guarantees they can be the same

15. Random (Common Cause) Variation

Natural variation present in all processes - Cannot be controlled by managers1) Find best outcome for each state of nature 2) Subtract the best column value from other values in the same column 3) Determine the maximum opportunity loss for each decision, and choose the decision with the smallest of theseCustomer can penetrate into the system with a large degree of customer contact - Customer has influence on service system / provision - System is reactive to customer needs - Customer gets Face to face total customization, Face to face loose specifications (Ex: Full restaurant where can alter dishes) Ex: Medical services Choose the decision alternative with the best of the worst possible payoffs (Minimax for minimization problems or Maximin for maximization problems)

16. Strategic Partnering

Two or more business organizations that have complementary products or services join so that each may realize a strategic benefit.Choose the decision alternative with the best of the worst possible payoffs (Minimax for minimization problems or Maximin for maximization problems)1) Find best outcome for each state of nature 2) Subtract the best column value from other values in the same column 3) Determine the maximum opportunity loss for each decision, and choose the decision with the smallest of theseCustomer can penetrate into the system with a large degree of customer contact - Customer has influence on service system / provision - System is reactive to customer needs - Customer gets Face to face total customization, Face to face loose specifications (Ex: Full restaurant where can alter dishes) Ex: Medical services

17. Operations Management

Customer can penetrate into the system with a large degree of customer contact - Customer has influence on service system / provision - System is reactive to customer needs - Customer gets Face to face total customization, Face to face loose specifications (Ex: Full restaurant where can alter dishes) Ex: Medical services Choose the decision alternative with the best of the worst possible payoffs (Minimax for minimization problems or Maximin for maximization problems)The design, operation, and improvement of the systems that create and deliver the firm's products and services - Involves long and short term decisions that are made with business analytics tools1) Find best outcome for each state of nature 2) Subtract the best column value from other values in the same column 3) Determine the maximum opportunity loss for each decision, and choose the decision with the smallest of these

18. In the supply chain, money flows towards the ____________ of the chain.

1) Find best outcome for each state of nature 2) Subtract the best column value from other values in the same column 3) Determine the maximum opportunity loss for each decision, and choose the decision with the smallest of theseChoose the decision alternative with the best of the worst possible payoffs (Minimax for minimization problems or Maximin for maximization problems)Back / BeginningCustomer can penetrate into the system with a large degree of customer contact - Customer has influence on service system / provision - System is reactive to customer needs - Customer gets Face to face total customization, Face to face loose specifications (Ex: Full restaurant where can alter dishes) Ex: Medical services

19. Value chain

Choose the decision alternative with the best of the worst possible payoffs (Minimax for minimization problems or Maximin for maximization problems)1) Find best outcome for each state of nature 2) Subtract the best column value from other values in the same column 3) Determine the maximum opportunity loss for each decision, and choose the decision with the smallest of theseThe sequence of activities producing an output worth more than its inputsCustomer can penetrate into the system with a large degree of customer contact - Customer has influence on service system / provision - System is reactive to customer needs - Customer gets Face to face total customization, Face to face loose specifications (Ex: Full restaurant where can alter dishes) Ex: Medical services

20. Steps of the transformation process

21. Service System Design Matrix (3 Systems)

1) Find best outcome for each state of nature 2) Subtract the best column value from other values in the same column 3) Determine the maximum opportunity loss for each decision, and choose the decision with the smallest of theseChoose the decision alternative with the best of the worst possible payoffs (Minimax for minimization problems or Maximin for maximization problems)Customer can penetrate into the system with a large degree of customer contact - Customer has influence on service system / provision - System is reactive to customer needs - Customer gets Face to face total customization, Face to face loose specifications (Ex: Full restaurant where can alter dishes) Ex: Medical services A framework that relates to the amount of customer service system contact

22. Linear Program Model Set-Up Steps

Customer can penetrate into the system with a large degree of customer contact - Customer has influence on service system / provision - System is reactive to customer needs - Customer gets Face to face total customization, Face to face loose specifications (Ex: Full restaurant where can alter dishes) Ex: Medical services 1) Find best outcome for each state of nature 2) Subtract the best column value from other values in the same column 3) Determine the maximum opportunity loss for each decision, and choose the decision with the smallest of theseChoose the decision alternative with the best of the worst possible payoffs (Minimax for minimization problems or Maximin for maximization problems)1) Define Decision Variables (X1,X2,X12, etc.) 2) Write Objective Function (Maximize / Minimize Z = ...) 3) Define Constraints

23. Goods v. Services: Labor Content of Jobs

Goods usually have a lower labor content (High use of automation) - Services usually have a higher labor contentChoose the decision alternative with the best of the worst possible payoffs (Minimax for minimization problems or Maximin for maximization problems)1) Find best outcome for each state of nature 2) Subtract the best column value from other values in the same column 3) Determine the maximum opportunity loss for each decision, and choose the decision with the smallest of theseCustomer can penetrate into the system with a large degree of customer contact - Customer has influence on service system / provision - System is reactive to customer needs - Customer gets Face to face total customization, Face to face loose specifications (Ex: Full restaurant where can alter dishes) Ex: Medical services

24. Information should _________ user expectations

1) Find best outcome for each state of nature 2) Subtract the best column value from other values in the same column 3) Determine the maximum opportunity loss for each decision, and choose the decision with the smallest of thesematchChoose the decision alternative with the best of the worst possible payoffs (Minimax for minimization problems or Maximin for maximization problems)Customer can penetrate into the system with a large degree of customer contact - Customer has influence on service system / provision - System is reactive to customer needs - Customer gets Face to face total customization, Face to face loose specifications (Ex: Full restaurant where can alter dishes) Ex: Medical services

25. Sensitivity Analysis

Study of how changes in inputs of an optimization model affect the optimal solution - Answers how a change in the coefficient of a variable in the objective function or right side of a constraint affects the optimal solutionCustomer can penetrate into the system with a large degree of customer contact - Customer has influence on service system / provision - System is reactive to customer needs - Customer gets Face to face total customization, Face to face loose specifications (Ex: Full restaurant where can alter dishes) Ex: Medical services 1) Find best outcome for each state of nature 2) Subtract the best column value from other values in the same column 3) Determine the maximum opportunity loss for each decision, and choose the decision with the smallest of theseChoose the decision alternative with the best of the worst possible payoffs (Minimax for minimization problems or Maximin for maximization problems)

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25 Questions

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25 Questions

❤ If you liked Fatskills, consider supporting us by checking out The Life Manuals You Never Got.

About | Explore | User Guide | Topics | Subjects | Doubt Solver | Career Aptitude Test | Answers | Free Tools | OSHA Basics Quiz | What Should We Know? Privacy | Terms |

Without work one finishes nothing. - Ralph Waldo Emerson© 2026 Fatskills.com

All trademarks, logos and brand names are the property of their respective owners. All company, product and service names used in this website are for identification purposes only. Use of these names, trademarks and brands does not imply endorsement.

About | Explore | User Guide | Topics | Subjects | Doubt Solver | Career Aptitude Test | Answers | Free Tools | OSHA Basics Quiz | What Should We Know?
Privacy | Terms |

Without work one finishes nothing. - Ralph Waldo Emerson
© 2026 Fatskills.com