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The owner of a chain of auto-accessory shops in five different towns inputs sales figures into a computer model that displays the selling trends of...

      

The owner of a chain of auto-accessory shops in five different towns inputs sales figures into a computer model that displays the selling trends of each store. She uses her own observation form visits to the shops and information gained from the model
to make ordering decisions for each store.
Required:
Are the ordering decisions she makes structured, semi-structured or unstructured? Briefly
explain the reasons for your choice and outline what product related variables are involved
in the ordering decisions.

  

Answers


gregory
Structured decisions –these are repetitive and defined decisions. A standardized pre-
plannedapproach is used to make the decision and a specific methodology is applied routinely.
Semi structured decision –the information requirement and the methodology to be applied
areoften known, but some aspects of the decision still rely on the manager. As such the manager
can exercise some discretion in the making of decisions.
Unstructured decisions –tends to be unique. The information needed for decision–making
isunpredictable and no fixed methodology exists. Here the manager exercises a lot of discretion.
From the above definitions its clear that the decision made by the owner of this classic stone is
semi-structured. She incorporates the information from the computer which is automated and
uses judgment to make decision. The product related variables in making ordering decisions are :-
(i) The quality of the products.
(ii) The quantity to be ordered.
(iii) The availability of the products needed.
(iv) The availability of supplies and reliability.
(v) Availability of cash to purchase
gregorymasila answered the question on November 24, 2017 at 05:37


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