O'Reilly logo

Operations Management: Processes and Supply Chains, 12th Edition by Larry P. Ritzman, Manoj K. Malhotra, Lee J. Krajewski

Stay ahead with the world's most comprehensive technology and business learning platform.

With Safari, you learn the way you learn best. Get unlimited access to videos, live online training, learning paths, books, tutorials, and more.

Start Free Trial

No credit card required

Decision Trees

The decision tree method is a general approach to a wide range of processes and supply chain decisions, such as product planning, process analysis, process capacity, and location. It is particularly valuable for evaluating different capacity expansion alternatives when demand is uncertain and sequential decisions are involved. For example, a company may expand a facility in 2015 only to discover in 2018 that demand is much higher than forecasted. In that case, a second decision may be necessary to determine whether to expand again or build a second facility.

A decision tree is a schematic model of alternatives available to the decision maker along with their possible consequences. The name derives from the treelike appearance of ...

With Safari, you learn the way you learn best. Get unlimited access to videos, live online training, learning paths, books, interactive tutorials, and more.

Start Free Trial

No credit card required