Question: Your task is to build a decision tree based on the following scenario.OM , Inc., a manufacturer of widgets, is considering the possibility of producing
Your task is to build a decision tree based on the following scenario.OM Inc., a manufacturer of widgets, is considering the possibility of producing a new superduper widget. However, they cannot decide between using an automatic D printing manufacturing technique or producing the widgets by traditional methods. This new project will require OM Inc. to either purchase a highend D printer or hire and train four additional employees. The market for the new widget could be either favorable or unfavorable. Ultimately, OM Inc. can also decide not to develop the new widget.Sales for favorable customer acceptance would be widgets selling for $ each. With unfavorable acceptance, sales of the widgets would only be widgets at a selling price of $ each. The initial setup cost of the D printing system is $; however, the hiring and training of the four new employees would cost only $ In the end, manufacturing costs are $ for each widget when manufacturing without D printing and $ each when D printed.The probability of favorable acceptance of the new widgets is ; the probability of unfavorable acceptance is
Step by Step Solution
There are 3 Steps involved in it
1 Expert Approved Answer
Step: 1 Unlock
Question Has Been Solved by an Expert!
Get step-by-step solutions from verified subject matter experts
Step: 2 Unlock
Step: 3 Unlock
