Course Learning Outcomes and Business Decision Making with QM Software

Recognize the major quantitative, theoretical and conceptual frameworks used in business decision making

Upon completion of this course, the student will be able to :

1. Recognize the major quantitative, theoretical and conceptual frameworks used in business decision making.

2. Apply appropriate quantitative analysis software to solve business problems.

3. Analyze business problems using quantitative analysis.

4. Propose business solution by standard methods using software’s.

RAKZ is considering the purchase of two types of industrial robots. The Robot 1 (alternative 1) is a large robot capable of performing a variety of tasks, including welding and painting. The Robot 2 (alternative 2) is a smaller and slower robot, but it has all the capabilities of Robot 1. The robots will be used to perform a variety of repair operations on large industrial equipment. Of course, RAKZ can always do nothing and not buy any robots (alternative 3). The market for the repair operation could be either Growing or Declining. RAKZ has constructed a payoff matrix showing the expected returns of each alternative and the probability of a favorable or unfavorable market. The data are presented:

Provide your advises (best solutions) to the decision maker through using the QM software using the following criteria:

First:

1. Expected Monitory Value
2. Equally likely (Laplace),Maximax and Maximin,
3. Criterion of Realism (Hurwicz), where Hurwicz coefficient  =0.70,
4. Minimax regret decision and
5. Discuss your decisions (a) to (d)

Second:

RAKZ is considering the possibility of conducting a survey on the market potential for industrial equipment repair using robots. The cost of the survey is $5,000.  

Use QM software to:

1. Develop the Decision Tree for RAKZ decision analysis
2. Compute the Expected Monetary Value (EMV) as criterion on which you make your decisions.
3. Discuss your decisions by exploring your ideas and thoughts regarding the use of the Decision Tree technique.