The Individually Responsible and Rational Decision Approach to Economic Lot Sizes for One Vendor and Many Purchasers: A Comment*

Joglekar and Tharthare [6] presented an alternate approach for minimizing total inventory carrying and ordering costs of a vendor and the purchaser(s). This approach permits the vendor and the purchaser(s) to rationally select their operating policies. Joglekar and Tharthare claimed that their approach is more economical than the joint lot-size approach. In this note we identify some conceptual issues in their approach and demonstrate the superiority of the joint lot-size approach with the help of an example.     

Fading Frames: Data Presentation and Framing Effects*

This article describes three experiments that investigate the impact of data presentation on framing, which is the differential evaluation of objectively equivalent information given different frames of reference. The experiments were designed to vary the amount of information and the format of presentation (tables versus graphs) provided to the decision maker to gain an understanding of the mechanism underlying framing. The inferred information model proposed by Johnson and Levin [11] is utilized to explain the results of the three experiments in terms of the redistribution of weights attached by the decision makers to the attributes of the prospective outcomes. The results of the three experiments indicate that framing effects are observed only when the presentation of data facilitates the shifting of weights among the attributes of the available alternatives. The results further indicate that framing is eliminated as more information is displayed. However, presentation of additional information does not eliminate framing when a graphical format is utilized. Finally, no framing effects are observed when uneven amounts of information are used to describe two alternatives in the same decision task.     

A Learning Curve Analysis of Expert System Use*

In this article, we study how an expert system affects novice problem solving in a financial risk analysis domain. We demonstrate that novice performance is improved after exposure to an expert system. Further, we show that novice performance continues to improve when the system is withdrawn. By comparing learning curves for people with exposure to those without, we can assess how much the system has benefitted its users. We demonstrate a quantitative methodology to measure the increment of learning due to the use of an information technology. We also explore the issue of how expertise is transferred from the system to the user.     

The Design of a Knowledge-Based Decision Support System to Support the Information Analyst in Determining Requirements

Decision support system (DSS) researchers and designers continue to look for unstructured organizational tasks where there is a critical need for intelligent computer-based support. One such decision task is information requirements determination. Requirements determination is recognized as the most crucial phase of the systems development life cycle. Unfortunately, most methodologies and CASE tools focus only on how to specify the requirements once they are determined. There is very little computer support for the process of determining requirements. This paper discusses the conceptual design and development of a knowledge-based DSS to support information analysts in the critical decision task of determining requirements for the design of effective information systems. The expert modeling support system has the expertise to assist the analyst in studying the organization as a whole and in modeling the system under study in the context of the overall organization's goals and needs. The focus of the paper is on the problems associated with building the knowledge base component of the intelligent decision support system. A prototype implementation of the system is described.     

Constrained Forecasting: Some Implementation Guidelines

Constrained forecasting has become a popular approach to the complex task of predicting future sales. Mixed performance results have been obtained by companies employing constrained forecasting systems software packages which probably reflects the lack of any clear system implementation guidelines. A number of important operational parameters such as the number of product families, criterion used to define product families, number of system levels, etc. must be specified. This study reports on an investigation of two of these parameters: product group size and appropriate grouping criterion. Different tests are performed with the constrained forecasting system and compared to a traditional forecasting approach using product data from the Cummins Engine Company of Columbus, Indiana.     

Discretionary Use of Computers: An Empirically Derived Explanatory Model*

This study identifies variables that explain variations in computer use. Factor analysis of data gathered from 422 business administration faculty reveal eight themes among the independent variables. Seven of these factors significantly discriminate among non, minimal, and high users. These results suggest an empirical model for future studies and provide policy insights for decision makers seeking to stimulate computer usage. Additionally, the study shows that there is much commonality between the previously separate organizational innovation and information systems implementation streams. It also demonstrates that motivation theory may be a valid framework within which to study computer use.     

Cognitive Fit: A Theory-Based Analysis of the Graphs Versus Tables Literature*

A considerable amount of research has been conducted over a long period of time into the effects of graphical and tabular representations on decision-making performance. To date, however, the literature appears to have arrived at few conclusions with regard to the performance of the two representations. This paper addresses these issues by presenting a theory, based on information processing theory, to explain under what circumstances one representation outperforms the other. The fundamental aspects of the theory are: (1) although graphical and tabular representations may contain the same information, they present that information in fundamentally different ways; graphical representations emphasize spatial information, while tables emphasize symbolic information; (2) tasks can be divided into two types, spatial and symbolic, based on the type of information that facilitates their solution; (3) performance on a task will be enhanced when there is a cognitive fit (match) between the information emphasized in the representation type and that required by the task type; that is, when graphs support spatial tasks and when tables support symbolic tasks; (4) the processes or strategies problem solvers use are the crucial elements of cognitive fit since they provide the link between representation and task; the processes identified here are perceptual and analytical; (5) so long as there is a complete fit of representation, processes, and task type, each representation will lead to both quicker and more accurate problem solving. The theory is validated by its success in explaining the results of published studies that examine the performance of graphical and tabular representations in decision making.     

Graphical Presentations of Data Envelopment Analyses: Management Implications from Parallel Axes Representations*

The conversion of multivariate data analysis into information that managers can readily use in their decision making has always been a challenging task. In this paper we provide a parallel axis representation of multivariate data and demonstrate how this representation may be used as a tool for implementing the results of data envelopment analysis. We use an analysis of the efficiency of electricity generating plants to illustrate the technique.     

A Probabilistic Dealing Strategy

A probabilistic dealing strategy is proposed which allows all premium brands in an established market to earn nonnegative profits without cooperation. Following the strategy, brands take turns attracting deal-responsive customers. Relative to a reactive competitive strategy, the proposed strategy improves the positions of all premium brands. With use of the strategy, average deal sizes are positively related to a brand's market share, the proportion of quality conscious customers, the proportion of informed customers, the span of regular prices in a market, and the range of customers' acceptable prices.