Tom Jordan is a manager for a McDonald’s restaurant. Many of his key responsibilities include analyzing data and making key decisions for the success of his store. Tom’s store has been experiencing decreased sales for breakfast services over the past 3 months. Tom is unsure why breakfast revenues are down while lunch and dinner revenues remain unchanged. Tom believes that he can drive revenue up by implementing a few different breakfast promotions such as free coffee or hash browns with the purchase of a meal. Tom performs an extensive analysis of how continuous changes in breakfast promotions could impact his daily revenue. What type of DSS analysis is Tom performing?

Question

BlackTom AI · Accepted Answer

Tom is examining how incremental changes in breakfast promotions affect daily revenue, which is the classic purpose of sensitivity analysis: evaluating how variations in input assumptions or factors impact outputs.
Option 1: Sensitivity analysis. This choice aligns with the described activity, as it focuses on understanding the effect of changing breakfast promotions on revenue without necessarily aiming to hit a specific target or finding an optimal combination.
Option 2: Goal-seeking analysis. This approach involves adjusting inputs to reach a predefined goal or target value, such as achieving a target revenue, which isn’t explicitly stated in the scenario.
Option 3: Transaction analysis. This term is not a standard DSS analysis category for exploring how input changes affect outputs; it more generally refers to analyzing individual transactions rather than scenario-based input variation.
Option 4: Optimization analysis. Optimization seeks the best possible solution under given constraints, usually requiring a objective function to maximize or minimize; the description mentions testing various promotions to see impact rather than solving for the optimal promotion mix.

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