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Decisions that management may make from the break even analysis model:
? Decision on the selling price of the products in order to obtain certain profit.
? Marketing decision in order to make the required sales.
? Determining the variable costs of the products in order to make required profits.
This could be by buying cheaper raw materials.
? Decide the number of unit to be produced.
(ii) An expert system is a system that acts as an expert consultant to users. Reason for its use
include: -
? For consistency in the decision being made
? Speed- the expert system is faster than a human being expert.
? Permanence – the experts can die or leave but an expert system can be used for a long
time, use will only stop if it is changed.
? Remote areas – expert system can be used in areas where human being fear going eg.
Arid areas, bad climate area etc
? Objectivity – decisions made by expert systems are not guided by passions or feelings as
such decisions are always for the best interest of the organisation.
? Experts are costly to maintain, expert systems on the other hand involve only one off
costs, the acquisition.
gregorymasila answered the question on November 24, 2017 at 05:37
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