BBIT209   DECISION SUPPORT SYSTEMS.

UNIVERSITY EXAMINATIONS: 2018/2019
EXAMINATION FOR THE DEGREE OF BACHELOR OF BUSINESS IN INFORMATION
TECHNOLOGY
BBIT 209: DECISION SUPPORT SYSTEMS
FULL TIME/PART TIME/DISTANCE LEARNING
DATE: AUGUST ,2019 TIME: 2 HOURS
INSTRUCTIONS: Answer Question One & ANY OTHER TWO questions.

QUESTION ONE
a) Simon’s Model of the decision making process has several fundamental stages. List these with a
brief summary of each stage. Which is, in your opinion, the most important stage?
(4 Marks)
b) Distinguish between data-directed and goal-directed analysis in rule-based systems. Which is
preferred for medical diagnostic systems and why? (4 Marks)
c) Using relevant examples differentiate between the following decision theories :descriptive,
prescriptive and normative (6Marks)
d) We have been asked to create a wine recommender for a restaurant, following these rules. If the
customer is a connoisseur and orders a meat meal (veal, steak or spam) then we recommend the
“Bordeaux”. If customer is a connoisseur and orders a fish meal (salmon, sole or sardines) then we
recommend the “Sauvignon Blanc”. If the customer well informed and orders a meat meal, then
we recommend the “Merlot”. If the customer is well informed and orders a fish meal, we
recommend the “Chardonnay”, and for all other cases we recommend the “House Special.
Create a decision table using the information above (6 Marks)
e) Describe two examples of intelligent algorithms that can be used in DSS (4 Marks)
f) Compare the two common methods of modeling a problem structure: influence diagram
and decision tree. What are the focuses of each? (6 Marks)

QUESTION TWO
a) “Proper application of decision making tools increase productivity, efficiency and effectiveness
leading to competitive advantage. “ Justify ( 10 Marks)
b) Astrofuels produce two grades of petroleum from crude oil. Unleaded plus requires 1 hours of
processing time, while Premium Ultra requires 2 hours of processing time. Astrofuel has two
processing machines. Astrofuel operate a 5 day working week, and each working day is 8 hours
long. The company has six independent processing machines. Each machine requires 3 hours of
cleaning per day in order to maintain the purity of the product. 1 hour of processing time costs
€1. In addition additives and extra refinement costs an additional €1 for Premium Ultra, and €2
for Unleaded plus. Astrofuels has a standing order of 125 tons per month of Premium Ultra from
a major fuel distributor, Taxol. In order to meet revenue targets, management has demanded that
at least 350 tons of fuels be processed this month.
Your objective as production manager is to minimize production cost for the next month.
Describe how this can be achieved in which this is possible using the data provided above.( For
the purpose of calculation, you may assume a month consists of 4 weeks. )
(10 Marks)
QUESTION THREE
a) A Group Decision Support System (GDSS) is more likely to support the Intelligence phase of
Simon (1960)’s decision making model, whereas a rule-based Expert System (ES) is more likely to
support the Design and Choice phases. Discuss the extent to which you agree with this statement.
Include a definition of both GDSS and rule-based ES within your answer. (10 Marks)
b) How can sensitivity analysis help in the choice phase (6 Marks)
c) Discuss how can a computer help overcome the cognitive limits of human (4 Marks)
QUESTION FOUR
Clothes Entreprise is a leading clothing with over 100 departmental stores in Kenya. The
departmental stores have to reconsider the best way to secure and maintain a competitive advantage.
With increasing competition, they are planning on using a sophisticated decision support system.
The existing system in the company handles large amounts of data, however, inadequate data access
and analysis capabilities prevented managers from exploiting the wealth of information buried in
their business transaction.
i) Identify THREE (3) risks in implementing a DSS project in the company. (6 Marks)
ii) Explain how the company is able to gain competitive advantage against its competitors by the
new DSS. (6 Marks)
iii) Give THREE (3) decision situations which can be supported by the new decision support
system. (8 Marks)
QUESTION FIVE
You are getting into a business and want to take a loan. The bank requires that you show them your
projected profits. Develop calculate a forecast for the next five years starting 2017 the following data:
First order is for 100,000 units at a selling price of 6kshs per unit. Both numbers are projected to
increase by 20% yearly
Renting the production facility at 500,000kshs a year for five years
Variable manufacturing cost of 1.50kshs per unit with a projected increase of 10% yearly
Administration cost of 25,000kshs per year with a likely increase of 5%annually
Tax rate is at 36%
a) Develop a five year financial forecast showing profits before and after tax. (16 Marks)
b) Advice on whether the Loan should be granted or not granted (4 Marks)

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