The Types of Decision Structures,
1. Simple Decision Structure
This type of structure is used when there is only one condition to evaluate. If the condition is true, a specific action is taken. For example, if sales are low, the company might reduce prices to attract customers. It is straightforward and easy to use for basic decisions.
2. Sequential Decision Structure
In this structure, decisions are made step by step in a particular order. Each step depends on the result of the previous one. For example, a company might first check its stock levels, then check its budget, and finally decide whether to purchase new inventory. This structure ensures decisions are logical and organized.
3. Multi-Way Decision Structure
This is used when there are several conditions, each leading to a different action. For instance, if profits are high, a company may decide to expand; if profits are moderate, it may maintain its current operations; and if profits are low, it may cut costs. This structure helps in managing multiple possibilities.
4. Nested Decision Structure
In a nested structure, one decision is made within another. For example, if it is raining, a person might then check if they have an umbrella. If they do, they can go outside. This structure is useful for handling complex situations with multiple levels of decision-making.
5. Iterative Decision Structure
This structure repeats a decision-making process until a condition is met. For example, a business might keep advertising a product until it reaches its sales target. It is useful for tasks that require continuous effort or monitoring.
6. Decision Tables
A decision table organizes conditions and their corresponding actions in a table format. For example, a company can use a table to decide whether to increase production or stop it based on stock availability and demand. This structure is helpful for handling multiple variables clearly and systematically.
7. Probabilistic Decision Structure
This structure is used when decisions involve uncertainty and probabilities. For instance, a business might invest in a project if there is a high probability of success. It helps in making informed decisions in situations where outcomes are not guaranteed.
In conclusion, these decision structures help organizations make decisions more effectively by organizing the process based on the situation’s complexity. They ensure better outcomes and save time by simplifying decision-making.