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    Decision Tree

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    Usmän Mïrżä
    The document discusses expanding a small plant or building a large plant based on projected demand. A small plant expansion would cost $1.5 million but could only produce up to 300,000 units, while a large plant costs $2 million but can produce up to 600,000 units. There is a 70% chance of high demand requiring the larger capacity and a 30% chance of low demand where the smaller plant would be sufficient.

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    Decision Tree

    Uploaded by

    Usmän Mïrżä
    15 views1 page
    The document discusses expanding a small plant or building a large plant based on projected demand. A small plant expansion would cost $1.5 million but could only produce up to 300,000 units, while a large plant costs $2 million but can produce up to 600,000 units. There is a 70% chance of high demand requiring the larger capacity and a 30% chance of low demand where the smaller plant would be sufficient.

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    Decision tree.docx

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    The document discusses expanding a small plant or building a large plant based on projected demand. A small plant expansion would cost $1.5 million but could only produce up to 300,000 units, while a large plant costs $2 million but can produce up to 600,000 units. There is a 70% chance of high demand requiring the larger capacity and a 30% chance of low demand where the smaller plant would be sufficient.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as docx, pdf, or txt
    15 views1 page

    Decision Tree

    Uploaded by

    Usmän Mïrżä
    The document discusses expanding a small plant or building a large plant based on projected demand. A small plant expansion would cost $1.5 million but could only produce up to 300,000 units, while a large plant costs $2 million but can produce up to 600,000 units. There is a 70% chance of high demand requiring the larger capacity and a 30% chance of low demand where the smaller plant would be sufficient.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as docx, pdf, or txt
    of 1

    300,000

    High Demand
    70%

    70% 600,000

    Small Plant
    Expansion Cost 1.5M
    Cost 2 M

    Low Demand 30% 150,000

    30%
    500,000 100,000
    High Demand
    70%
    Large Plant
    Cost 2 M

    Low Demand 30%


    100,000

    Do Not Expanded

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