Salem is an operations manager whose budget of $555,000 was approved to buy four new machines in order to increase production by 15%.After seeing what the suppliers had to offer,he realized that the model which would best suit his company's needs was very expensive and he could only purchase three machines rather than four.He requested a budget increase and was denied.Salem decided that the three machines will serve the purpose.This is an example of ________.
A)evaluating results
B)bounded rationality
C)rational decision-making
D)classical decision model
E)cost benefit analysis

Question

Quizplus · Accepted Answer

Salem's decision-making process demonstrates bounded rationality, as he was limited by his budget and ultimately had to settle for a solution that was less optimal than his original plan. This is a common occurrence in real-world decision-making, where managers are often faced with constraints and have to make trade-offs between competing priorities.

Salem Is an Operations Manager Whose Budget of $555,000 Was