Contribution of Decision Support System in Enhancing Productivity and Profitability of the Firm

Abstract

The business paradigms are changing amidst changing business environment. There are newer technologies at disposal, rising customer awareness and their expectations from the need to attain efficiency and effectiveness in business processes for survival and competitive advantage. This paper provides insights on the significance of business decision making and present state of organizations that are striving to achieve optimal utilization of limited business resources. The paper highlights the nature of linear programming model and its importance in effective business decision making. The business impact of model is illustrated in the case using the linear programming model and transportation method through excel solver in computer manufacturing firms to help in deciding optimum quantity to produce within limited resources and how the computers manufactured can be distributed to market places at minimal cost. The paper elicits the effectiveness of the linear programming model to realize good decision making in business by meeting the business objectives through optimal utilization of resources. It concludes that model driven decision support system enhances the productivity and profitability of the firm in a constrained environment and is a highly effective model for solving business problems.