When Will a Company Use a Predictive Decision Model

question 21

Multiple Choice

When will a company use a predictive decision model?

• A) when it wishes to determine the best product pricing to maximize revenue
• B) when it wishes to know how best to use advertising strategies to influence sales
• C) when it wishes to know sales patterns to plan inventory levels
• D) when it wishes to ensure that a specified level of customer service is achieved

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Definitions:

Portfolio Analysis

The process of reviewing or assessing the elements of a group of investments, assets, or products to make decisions based on performance and risk.

Strategic Goods

Products, services, or materials that are crucial to a company’s business strategy or to national security, often subject to trade controls.

Value Engineering (VE)

A systematic method to improve the "value" of goods or products and services by using an examination of function. Value, in this context, can be defined as the ratio of function to cost.

Value Analysis (VA)

is a method to improve product value by examining its function, design, and the cost of components, aiming for cost reduction while maintaining quality.