Homework Help is Here – Start Your Trial Now!
Business
Operations Management
The following decision table organizes a decision that Eve Chapman needs to make regarding her home cake business. She has been providing custom cakes for over 5 years and it has been very successful. Eve now needs to decide whether or not to expand her business to accommodate more customers and if she expands, whether to expand with a small or a medium shop. Her decision will be heavily based on whether the demand is high or low for baked goods. Select the correct decision tree based on the given decision table. Alternatives Small shop Medium shop Do not expand Decision Table State of Nature High Demand 1200 1400 0 Low Demand -500 - 1400 0

The following decision table organizes a decision that Eve Chapman needs to make regarding her home cake business. She has been providing custom cakes for over 5 years and it has been very successful. Eve now needs to decide whether or not to expand her business to accommodate more customers and if she expands, whether to expand with a small or a medium shop. Her decision will be heavily based on whether the demand is high or low for baked goods. Select the correct decision tree based on the given decision table. Alternatives Small shop Medium shop Do not expand Decision Table State of Nature High Demand 1200 1400 0 Low Demand -500 - 1400 0

Practical Management Science
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
See similar textbooks
icon
Related questions
Question
100%
The following decision table organizes a decision that Eve Chapman needs to make regarding her home cake business. She has been providing custom cakes for over 5 years and it has been very successful. Eve now needs to decide whether or not to expand her business to accommodate more customers and if she expands, whether to expand with a small or a medium shop. Her decision will be heavily based on whether the demand is high or low for baked goods. Select the correct decision tree based on the given decision table. **Decision Table:** | Alternatives | State of Nature | |------------------|-----------------| | | High Demand | Low Demand | | Small shop | 1200 | -500 | | Medium shop | 1400 | -1400 | | Do not expand | 0 | 0 | This decision table helps analyze potential outcomes based on different levels of demand. Eve needs to weigh the possible benefits and drawbacks of each alternative before making her decision.
Transcribed Image Text:The following decision table organizes a decision that Eve Chapman needs to make regarding her home cake business. She has been providing custom cakes for over 5 years and it has been very successful. Eve now needs to decide whether or not to expand her business to accommodate more customers and if she expands, whether to expand with a small or a medium shop. Her decision will be heavily based on whether the demand is high or low for baked goods. Select the correct decision tree based on the given decision table. **Decision Table:** | Alternatives | State of Nature | |------------------|-----------------| | | High Demand | Low Demand | | Small shop | 1200 | -500 | | Medium shop | 1400 | -1400 | | Do not expand | 0 | 0 | This decision table helps analyze potential outcomes based on different levels of demand. Eve needs to weigh the possible benefits and drawbacks of each alternative before making her decision.
The image contains three decision trees, each illustrating potential business expansion strategies based on demand scenarios. Here's a detailed transcription and explanation of each: ### First Decision Tree - **Starting Points:** - High Demand - Decision 1: Expand to a **Small Shop**, **Medium Shop**, or **Do not expand**. - Low Demand - Decision 2: Expand to a **Small Shop**, **Medium Shop**, or **Do not expand**. ### Second Decision Tree - **Starting Points:** - High Demand - Decision 1: Expand to a **Small Shop**, **Medium Shop**, or **Do not expand**. - Low Demand - Decision 2: Expand to a **Small Shop**, **Medium Shop**, or **Do not expand**. ### Third Decision Tree - **Starting Points:** - Small Shop - Decision 1: Outcome based on **High Demand** or **Low Demand**. - Medium Shop - Decision 2: Outcome based on **High Demand** or **Low Demand**. - Do not expand: No further decisions or outcomes. ### Fourth Decision Tree - **Starting Points:** - Small Shop - Decision 1: Outcome based on **High Demand** or **Low Demand**. - Medium Shop - Decision 2: Outcome based on **High Demand** or **Low Demand**. - Do not expand: No further decisions or outcomes. These decision trees help illustrate the potential pathways and outcomes for a business considering expansion options under different demand scenarios. Each tree provides a structured approach to decision-making, assessing risks and opportunities of expanding based on market conditions.
Transcribed Image Text:The image contains three decision trees, each illustrating potential business expansion strategies based on demand scenarios. Here's a detailed transcription and explanation of each: ### First Decision Tree - **Starting Points:** - High Demand - Decision 1: Expand to a **Small Shop**, **Medium Shop**, or **Do not expand**. - Low Demand - Decision 2: Expand to a **Small Shop**, **Medium Shop**, or **Do not expand**. ### Second Decision Tree - **Starting Points:** - High Demand - Decision 1: Expand to a **Small Shop**, **Medium Shop**, or **Do not expand**. - Low Demand - Decision 2: Expand to a **Small Shop**, **Medium Shop**, or **Do not expand**. ### Third Decision Tree - **Starting Points:** - Small Shop - Decision 1: Outcome based on **High Demand** or **Low Demand**. - Medium Shop - Decision 2: Outcome based on **High Demand** or **Low Demand**. - Do not expand: No further decisions or outcomes. ### Fourth Decision Tree - **Starting Points:** - Small Shop - Decision 1: Outcome based on **High Demand** or **Low Demand**. - Medium Shop - Decision 2: Outcome based on **High Demand** or **Low Demand**. - Do not expand: No further decisions or outcomes. These decision trees help illustrate the potential pathways and outcomes for a business considering expansion options under different demand scenarios. Each tree provides a structured approach to decision-making, assessing risks and opportunities of expanding based on market conditions.
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 3 steps with 2 images

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Recommended textbooks for you
Practical Management Science
Practical Management Science
Operations Management
ISBN:
9781337406659
Author:
WINSTON, Wayne L.
Publisher:
Cengage,
Operations Management
Operations Management
Operations Management
ISBN:
9781259667473
Author:
William J Stevenson
Publisher:
McGraw-Hill Education
Operations and Supply Chain Management (Mcgraw-hi…
Operations and Supply Chain Management (Mcgraw-hi…
Operations Management
ISBN:
9781259666100
Author:
F. Robert Jacobs, Richard B Chase
Publisher:
McGraw-Hill Education
Business in Action
Business in Action
Operations Management
ISBN:
9780135198100
Author:
BOVEE
Publisher:
PEARSON CO
Purchasing and Supply Chain Management
Purchasing and Supply Chain Management
Operations Management
ISBN:
9781285869681
Author:
Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
Publisher:
Cengage Learning
Production and Operations Analysis, Seventh Editi…
Production and Operations Analysis, Seventh Editi…
Operations Management
ISBN:
9781478623069
Author:
Steven Nahmias, Tava Lennon Olsen
Publisher:
Waveland Press, Inc.
SEE MORE TEXTBOOKS