Ops | Operations Management homework help


Decision trees can be used to determine the best possible alternatives and potential payoff for a new product or solving other management problems where uncertainty is present.

Your task is to build a decision tree based on the following scenario.

OM, Inc., a manufacturer of widgets, is considering the possibility of producing a new super-duper widget using 3D printing. This new project will require OM, Inc. to either purchase a high-end 3D printer or hire and train three additional employees. The market for the new widget could be either favorable or unfavorable. In the end, OM, Inc., can also decide not to develop the new widget.

Sales for favorable acceptance by customers would be 30,000 widgets selling for $80 each. With unfavorable acceptance, sales of the widgets would only be 9,000 widgets as a selling price of $80 each. The cost of the 3D printing system is $600,000, however, the hiring and training of three new employees would cost only $100,000. In the end, manufacturing costs should drop from $60 for each widget when manufacturing without 3D printing to $45 each when 3D printed.

The probability of favorable acceptance of the new widget is .35; the probability of unfavorable acceptance is .65.

Before you start building your decision tree, review the How to Build a Decision Tree in Excel OM example presentation narrated by the course developer, Dr. Bob Walton.


Use Excel OM to build a decision tree. Make sure you carefully review the “Instructions & Example” provided in the OM plugin, and the example in your book. Submit your Excel decision tree along with a short explanation of what decision should be made by the company and how you arrived at your answer.

Calculate your order
Pages (275 words)
Standard price: $0.00
Client Reviews
Our Guarantees
100% Confidentiality
Information about customers is confidential and never disclosed to third parties.
Original Writing
We complete all papers from scratch. You can get a plagiarism report.
Timely Delivery
No missed deadlines – 97% of assignments are completed in time.
Money Back
If you're confident that a writer didn't follow your order details, ask for a refund.

Calculate the price of your order

You will get a personal manager and a discount.
We'll send you the first draft for approval by at
Total price:
Power up Your Academic Success with the
Team of Professionals. We’ve Got Your Back.
Power up Your Study Success with Experts We’ve Got Your Back.