Problem Synopsis:
Lands’ End has tens of millions of names in its customer database. It sells a wide range of women’s, men’s, and children’s clothing, as well various household wares. To match the right customer with the catalog, land’s end has identified 20 different specialty target markets. Customers in these target markets receive catalogs of merchandise that they are likely to buy, saving Lands’ End the expense of sending catalogs of all products to all 20 million customers. To predict customer demand, lands’ end needs to continuously monitor buying trends. And to meet that demand, lands’ end must accurately forecast sales levels. How does it accomplish these goals using the concept of the components of a Decision Support System?
Solution of the problem:
Land’s End can solve this problem using Decision Support System (DSS). We know DSS have four components. With the combination of these four components Land’s End can find a solution.
A. Data Management:
The data management component performs the function of storing and maintaining the information that the organization want its Decision Support System to use.
Here Land’s End will get three types of information.
1. Organizational Information
2. External Information
3. Internal Information
B. Model Management:
The model management component consists of both the Decision Support System models and the Decision Support System model management system. Businesses use models to represent variables and their relationships. Decision Support Systems help in various decision-making situations by utilizing models that allow you to analyze information in many different ways. The model management system stores and maintains the Decision Support System’s models.
Land’s End can create different models to identify user buying pattern, interests, most buying product etc. For example, Lands’ End uses a statistical model called regression analysis to determine trends in customer buying...