DECISION MAKING

Decision Making Process Used In Determining Product Mix



Decision Making Process Used Determining Product Mix

Introduction

In organizations to provide a service or offer a well needed synergy between core areas that form, such as finance, accounting, marketing and production, since it is much information to be exchanged for decision-making and there is real coordination. Between marketing and cost accounting should be an exchange of permanent information. Cost accounting should provide detailed information on costs incurred in marketing and sales, the costs and profits earned by each line of products, distribution channels used for sales territories and customers, only so many decisions can be taken such as breaking into a new market a new product design, pricing and discounts, select channels proper distribution or promotion.

In the present work are just some of the marketing decisions and disposal of products, quantities and combinations of products offered, where basic information reported by the cost accounting is the calculation of the cost structure. With the calculation of the structure can conduct an analysis of marginal profitability of products (Assel, 1985).

Information Systems and Decision Making

In all organizations make decisions, both tactical and strategic, some routine and the acquisition of raw materials and other less frequent and more momentous as a location for the new plant. Is common analysis of costs incurred for the adoption of countless decisions - What develop products? Do you make or buy certain part? Process your addition or sell semi-finished product? -, for all managers must make a proper distribution of scarce resources - financial and human - based in large extent, cost information.

There are certain steps in the decision-making, such as recognition of the existence of a problem or need, problem analysis, the proposed alternative solutions to the problem, selecting the best alternative and implementing the selected alternative. In each of these phases required to handle large amount of information, when the best alternative and implementation depends on the information, skills and experience of the manager to manipulate the variables, so as Poor information system can damage the best ideas and projects for the developing and improving products and processes.  (Bennis & Nanus, 1985).

In making decisions there are external and internal factors to consider. Within external factors is the consumer behavior, actions competition, state policies, the level of inflation and other variables macroeconomic, among others, these variables are uncontrollable, but must be considered when making decisions. Internal factors highlights the system financial reporting, much of which must be improved continuously to achieve the proper use of resources.

Decision-making and products range

Among the quality indicators of the company occupies an important place indicators such as production costs. It as a synthetic indicator reflects all aspects of production and financial activities of the organization. The level of production costs depend profit margins and profitability. Economical than the organization uses labor, material and financial resources in the manufacture of goods, works and service delivery, the greater the efficiency of the production process, the greater the profit.

An important point in management is the process of decision-making, during which determined ...