Explain the model formulation process: Decision, Outcome, Structure and Data. Give an example showing the four model

Model formulation is the combination of abstracts with specific assumption and a model of the essential aspects of the real world. There are four features of the model:
1. Decisions- are choices or courses of action that might be taken. (An example would be how much inventory to order)
2. Outcomes- are the consequences of the decisions. (Examples include profit, cost or efficiency)
3. Structure- is the logic and the mathematics that link the elements of the model together. (An example would be calculating simple interest rates. I= (P)(r)(t) with
(P) for principal, (r) for rate, and (t) time.

4. Data- refers to specific numerical assumptions. (An example would be sales per quarter)