The model formulation process includes decisions, outcomes, structure, and data according to (Baker, 2009).
Decision: refers to possible choices or actions that we might take. An example of decision process is like some of the items in out influence charts like the price, these are factors determined by choice.
Outcome: refers to the consequences of the decision the performance measures we use to evaluate the results of taking action. An outcome process example are the items enclosed in the hexagon on the charts, the outcome is the result from decisions made.
Structure: refers to logic and the mathematics that link the elements of our model together. Structure process is when to factor determine one variable; in the influence charts the price and the quantity sold structure make up the total revenue.
Data: refers to specific numerical assumption. In addition, the data process involves all of the information needed to structure and come to an outcome in a model starting with the outcome and working backwards.
