SUBJECT $-$ BUSINESS ANALYTICS $-$Question $3$

Soon, the production executive realized demand has increased consistently over

the quarters. There is a need to reevaluate either to build another production

line or outsource a few $\%$ of internal production schedule.

The information is given below. There is an associate with the probability of

economic condition as demand remain volatile to each option and the estimated

returns. The table below shows the details. $\backslash$table$[[$Options$,$Macro Condition,Probability,Cost $($RM$/$m$),$Revenue $(5$Years$)-$ RM$/$m$],[$Outsource$,$Positive,$70\%,4500,5600],[,$Poor,$30\%,,4500],[,,,,],[$Increase Production Line,Positive,$70\%,8500,8500],[,$Poor,$30\%,,6500]].$ Based on the above information, help the production executive to make a good

decision.

Your answers should contain:

$1.$ A decision tree.

$2.$ Analysis of Estimated Monetary Value

$3.$ Conclusion