Use a Payoff Table or Decision Tree A) Outsource

question 5

Multiple Choice

Use a payoff table or decision tree.
-A mid-size company is transitioning to a new ERP system. Consequently, company
Files need to be modified and / or updated so as to be compatible for transfer to the new
System. The company is considering three alternatives to deal with this extra work load:
(1) outsourcing (2) hiring temporary staff or (3) using full time staff in overtime. The
Estimated costs (in $100,000) associated with each of these actions depend on the
Difficulty level associated with file modification and transfer, which can be at one of
Three levels (easy, moderately difficult, or extremely difficult) as shown below. Using the
Minimax approach, the company should $$\begin{array} { | l | l | l | l | } \hline \text { Action } & \text { Easy } & \text { Moderately Difficult } & \text { Extremely Difficult } \\\hline \text { Outsource } & 2.5 & 3.0 & 3.5 \\\hline \text { Temporary Staff } & 1.5 & 2.6 & 4.0 \\\hline \text { Overtime } & 1.2 & 2.8 & 4.2 \\\hline\end{array}$$

• A) outsource.
• B) hire temporary staff.
• C) use full time staff in overtime.
• D) outsource if the file modifications are extremely difficult.
• E) use full time staff in overtime if the file modifications are easy.

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Definitions:

Parasitic

Pertaining to organisms that live on or in a host organism and may cause harm by deriving nutrients at the host's expense.

Shearing

The action or process of applying a force that causes different layers of a material to slide past each other, often related to skin and tissue injuries.

Unlicensed Assistive Personnel

Individuals who provide basic care services under the supervision of licensed healthcare professionals, without having a professional license themselves.

Mobility

The ability or ease of moving or being moved freely and easily.