Question: Many decisions are simple, preprogrammed, or already made. For example, retailers do not have to think long to decide how to deal with anew customer.

Many decisions are simple, preprogrammed, or already made. For example, retailers do not have to think long to decide how to deal with anew customer. Some operations research models provide “ready-made ” decisions, such as finding an optimal inventory level using an order-quantity formula or determining an optimal production mix using linear programming. Contrast these decisions with unstructured or strategic decisions, such as choosing a career or locating a nuclear power plant. What kinds of decisions are appropriate for a decision-analysis approach? Comment on the statement, “Decision making is what you do when you don’t know what to do.”

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For the most part decision analysis is most appropriate for strategic or onetime decisions These are ... View full answer

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