Question
You are a technology manager of firm that offers retail items in an on-line environment. The software that your firm current utilizes does not fully
You are a technology manager of firm that offers retail items in an on-line environment. The software that your firm current utilizes does not fully meet the requirements of you clients and you have three options, as outlined below, to correct the issues. Using a decision tree, determine the best option for the firm (Show All Calculations).
Process | Cost | Market Reaction | Probability of Success | Return-On-Investment |
Purchase New Software | $3,000,000 | Good | 90% | $4,000,000 |
Poor | 10% | $50,000 | ||
Create Software (In-House) | $1,500,000 | Good | 75% | $3,000,000 |
Poor | 25% | $250,000 | ||
Update Current Software | $500,000 | Good | 60% | $2,000,000 |
Poor | 40% | $250,000 |
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Matching Supply with Demand An Introduction to Operations Management
Authors: Gerard Cachon, Christian Terwiesch
3rd edition
73525200, 978-0073525204
