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Thomsons Decision Tree With ExcelQM

The document outlines a decision tree creation process using Excel OM/QM, detailing how to edit nodes and interpret values associated with decision outcomes. It presents various scenarios involving market conditions and plant sizes, along with their respective cumulative profits and probabilities. The decision tree illustrates the potential financial impacts of different choices, including favorable and unfavorable market conditions.

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0% found this document useful (0 votes)
58 views1 page

Thomsons Decision Tree With ExcelQM

The document outlines a decision tree creation process using Excel OM/QM, detailing how to edit nodes and interpret values associated with decision outcomes. It presents various scenarios involving market conditions and plant sizes, along with their respective cumulative profits and probabilities. The decision tree illustrates the potential financial impacts of different choices, including favorable and unfavorable market conditions.

Uploaded by

roseadam93.ma
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as XLSX, PDF, TXT or read online on Scribd
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Created by Excel OM/QM Use the Decision Tree Creation Window to create the tree.

ndow to create the tree. Click on a node to edit the tree. Values are on top of nodes. For decision nodes,
70 Data row decision is displayed below the node. Values to the right of final nodes are the cumulative profits along the path

Problem title

0.78
Fav. Market 9 190000
116400 200,000
Large plant 6
0 0.22
Unfavorable 10 -190000
-180,000

0.78
0.45 116400 Fav. Market 11 90000
Pos. result 4 73600 100,000
0 6 Small plant 7
0 0.22
Unfavorable 12 -30000
-20,000

No plant 8 -10000
0
59200
Survey 2 0.27
-10,000 Fav. Market 16 190000
-77400 200,000
Large plant 13
0 0.73
Unfavorable 17 -190000
-180,000

0.27
0.55 12400 Fav. Market 18 90000
Neg. result 5 12400 100,000
0 14 Small plant 14
0 0.73
Unfavorable 19 -30000
49200 -20,000
1
2
No plant 15 -10000
0

0.5
Fav. Market 23 200000
10000 200,000
Large plant 20
0 0.5
Unfavorable 24 -180000
-180,000

0.5
40000 Fav. Market 25 100000
No Survey 3 40000 100,000
0 21 Small plant 21
0 0.5
Unfavorable 26 -20000
-20,000

No plant 22 0
0

Problem Data

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