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



Tanuja Kaushik and Monica Bhardwaj


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.


Decision Support System, Linear Programming, Transportation, Decision Making, Resource Optimization.


  • Abreu, C.F., May, J.H., Spangler, W. E. and Vargas, L.G. (2008) ’Conflict Identification And Reconciliation in a Collaborative Manufacturing Scheduling Task’, International Journal of Information Technology & Decision Making, 7:1, pp. 147–174.
  • Derigs, U. and Friederichs, S. (2009) ’On the application of a transportation model for revenue optimization in waste management- a case study’, Central European Journal of Operations Research, 17:1, pp. 81-93.
  • Karlsson, J., Ronnqvist, M. and Frisk, M (2006) ‘Road Opt: A decision support system for road upgrading in forestry’, Scandinavian Journal of Forest Research, 21:7, pp. 5-15.
  • Mahdi, B. and Seyed, H. (2009) ‘A fuzzy group decision support system for multifacility location problems’, International Journal of Advanced Manufacturing Technology, 42:5/6, pp. 533.
  • Pavloudakis, F., Galetakis, M. and Roumpos, C. (2009) ‘A spatial decision support system for the optimal environmental reclamation of open-pit coal mines in Greece’, International Journal of Mining, Reclamation and Environment, 23:4, pp. 291–303.
  • Teive, R. C. G., Lange, T., Arfux, G. A. B., Queiroz, A. K. and Rosa, L. F. S. C. (2011) ‘A Decision support system for Energy trading and Portfolio Optimization’, Journal of Energy and Power Engineering, 5, pp. 349-355.

RNI Registration No. CHAENG/2016/68678