Decision: To purchase or not purchase rental car insurance In December of 2011, I will be traveling to Salem, Oregon to celebrate Christmas with my family. I have decided to stay for Christmas in Salem, Oregon for a week. The total trip is exactly a 1000 mile down the Interstate 5 highway each way from Oceanside, California to Salem, Oregon, and vice versa with a total of 2000 miles round trip. However, the expenses identified with air travel versus driving, I made my final decision to drive
Words: 1224 - Pages: 5
WEEK 10, Discussion Question 1: “Transshipment Problems” Can we apply transshipment models to inventory applications? Why or why not? Is the transportation model an example of decision making under certainty or decision making under uncertainty? Why? Can we apply transshipment models to inventory applications? Why or why not? Yes, transshipment models can be applied to inventory applications. This will ensure lower costs through proper management and disbursement of the inventory while providing
Words: 797 - Pages: 4
The three decision-making environments presented in the book are decision making under certainty, decision making under uncertainty, and decision making under risk. Decision-making under certainty – Decision makers knows the outcomes of every alternative or choice. They will make a decision based on what will benefit them the best. I’m a firm believer of eating healthy foods all the time. The healthier you eat the better your reproductive system will respond and the better you will
Words: 763 - Pages: 4
transported from one destination to another just like inventory applications. Is the transportation model an example of decision making under certainty or decision making under uncertainty? Why? Transportation model is an example of decision making under certainty because the destinations of the goods are decided and are not unknown which makes the decision making a certainty because the destination is known. The transshipment model is an extension of the transportation model in which intermediate
Words: 403 - Pages: 2
Limitations of Rational Decision-making Managers as Decision-makers The Rational Model Non-rational Models Decision-making Process Types of Managerial Decisions Programmed Decisions Non-programmed Decisions Decision-making Under Certainty, Uncertainty and Risk Management Information System vs Decision Support System The Systems Approach to Decision-making Group Decision-making Forms of Group Decision-making Decision-making Techniques Summary Decision-making describes
Words: 555 - Pages: 3
Operations Management Decision Making Under Certainty, Uncertainty, Environment is effect on the decisions which are making undercertainty.Certainty and undercertainty are reciprocal to each other,the degree will be vary certainty to uncertainty Decisions making associate with different kinds of risks. Certainty situation refer to who people think they are making reasonable decisions and what will be next in future and they predict analysis and make decisions . The reliable information
Words: 366 - Pages: 2
proposition follows from either of two criteria of rational decision-making: (1) the maximization of profits, and (2) the maximization of market value. Under either formulation, the cost of capital is equal to the rate of interest on bonds. These have equivalent implications under certainty (Certainty Equivalent Approach) but not under uncertainty. The attempt of allowing uncertainty takes the form of superimposing on the results of the certainty analysis the notion of a risk discount to be subtracted
Words: 921 - Pages: 4
Introduction What is involved in making a good decision? A good decision is one that is based on logic, considers all available data and possible alternatives, and the quantitative approach. Decision theory is an analytic and systematic approach to the study of decision making The Six Steps in Decision Making 1. Clearly define the problem at hand 2. List the possible alternatives 3. Identify the possible outcomes or states of nature 4. List the payoff or profit of each combination
Words: 3369 - Pages: 14
experience to distinguish between good and bad decisions. A “good” decision is one that is based on logic and all available information. A “bad” decision is one that is not based on logic and all available information. It is possible for an unfortunate or undesired outcome to result from a “good” decision (witness a patient expiring after open-heart surgery). It is also possible to have a favorable or desirable outcome result from a “bad” decision (you win at Blackjack, even though you drew a card
Words: 446 - Pages: 2
for Management, 11e (Render) Chapter 3 Decision Analysis 1) Expected monetary value (EMV) is the average or expected monetary outcome of a decision if it can be repeated a large number of times. Answer: TRUE Diff: 2 Topic: DECISION MAKING UNDER RISK 2) Expected monetary value (EMV) is the payoff you should expect to occur when you choose a particular alternative. Answer: FALSE Diff: 2 Topic: DECISION MAKING UNDER RISK 3) The decision maker can control states of nature. Answer:
Words: 8111 - Pages: 33
