When future demand is uncertain and sequential decisions are involved in capacity planning, a manager should use a:
A) waiting line model.
B) cash flow analysis.
C) decision tree.
D) gap analysis.

Question

Quizplus · Accepted Answer

When future demand is uncertain and sequential decisions are involved in capacity planning, a decision tree is the best tool to use. Decision trees can help to identify the potential outcomes of different decisions at different stages, which can help managers make informed decisions about capacity planning._waiting line models are appropriate for analyzing queuing situations, cash flow analysis is used for financial planning, and gap analysis is used to identify performance gaps in processes.

When Future Demand Is Uncertain and Sequential Decisions Are Involved