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2.5 Decision support systems

The DSS is a computerised decision aid and it represents a good balance between human abilities and the processing power of the modern computer for problem solving. It is because the nature of each problem is different and some problems are solved more efficiently by computers while humans solve other types of problems more efficiently. Modern computers can solve a problem very efficiently when the problem is very well structured and when it can formulated in logical terms by decision rules. On the other hand, unstructured problems are solved better by humans.

In real business life most problems are semi structured and a DSS is a suitable tool for bringing human expertise to interact with the computer for effective decision making.

Reading 2.9

Power, DJ (2002) 'A brief history of decision support systems', DSSResources.COM , URL: http://DSSResources.COM/history/dsshistory.html [5 pages]

Figure 2.5 Decision support systems are best for semi-structured problems which can not be solved by computers alone. (McLeod 1995)

Figure 2.5 Decision support systems are best for semi-structured problems which can not be solved by computers alone. (McLeod 1995)

Chapter 12 in your text covers details of DSSs for supply chains extensively. We will summarise the main concepts here.

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