An Airline Company Uses a Computer-Based System to Assist in Scheduling

question 29

Multiple Choice

An airline company uses a computer-based system to assist in scheduling maintenance for planes. The system combines the knowledge and insights associated with aircraft landing schedules of approximately three dozen aircraft routing specialists. It uses about 500 decision rules to 'reason' on behalf of the users. This system is an example of:

• A) an old-fashioned idea in the computer field.
• B) likely to replace the judgements of new managers.
• C) not likely to work efficiently and effectively.
• D) an expert system.
• E) designed to handle programmed decisions.

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Definitions:

Precommitments

Actions or commitments made in advance to strategically constrain one's future actions or choices, often used to achieve a desired outcome.

Utility Maximization

The principle that individuals or firms aim to achieve the highest level of satisfaction or benefit from their choices, given their resources.

Opportunity Cost

is the value of the best alternative forgone when a choice is made between competing options, representing the trade-offs associated with every decision.

Revenue Potential

The maximum amount of income that could be generated from a particular market or product, under ideal conditions.