Operations Management: Sustainability and Supply Chain Management, Twelfth Edition

Summary

This module examines two of the most widely used decision techniques—decision tables and decision trees. These techniques are especially useful for making decisions under risk. Many decisions in research and development, plant and equipment, and even new buildings and structures can be analyzed with these decision ­models. Problems in inventory control, aggregate planning, maintenance, scheduling, and production control also lend themselves to decision table and decision tree applications.

Key Terms

• Big data (p. 679)

• Decision table (p. 680)

• Maximax (p. 681)

• Maximin (p. 681)

• Equally likely (p. 681)

• Expected monetary value (EMV) (p. 682)

• Expected value of perfect information (EVPI) (p. 683)

• Expected value with perfect information (EVwPI) ...