An Operations Manager Has Developed This Decision Tree to Evaluate

question 22

Multiple Choice

An operations manager has developed this decision tree to evaluate the alternatives for a planned expansion.If the probability of high demand is 0.6,what is the best course of action?

• A)Alternative A
• B)Alternative B
• C)Alternative C
• D)Alternative D

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Definitions:

Policy Decisions

Decisions that involve the formulation and implementation of strategies and guidelines aimed at achieving specific objectives.

Real-Life Systems

Systems encountered in everyday experience that are complex, often unpredictable, and involve interactions between various elements.

Operating Characteristics

Specifications or parameters describing the performance of a system or process.

Action Decisions

Decisions that lead to specific actions or interventions aimed at achieving defined goals or solving problems.