Answered: Construct a Decision Tree for the above…

Engineering

Computer Science

Construct a Decision Tree for the above scenario.

Operations Research : Applications and Algorithms

4th Edition

ISBN:9780534380588

Author:Wayne L. Winston

Publisher:Wayne L. Winston

Chapter16: Probabilistic Inventory Models

Section: Chapter Questions

Problem 2RP

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Concept explainers

Payback Period

Payback period analysis is a method used to determine the relative time value of a project. It measures the time that a project will take to return its initial investment. The total time taken by the project to return the initial investment made for the project is called the payback period.

Question

Amarillo Video Store is planning a promotional give-away for its long-standing customers. If the customer has been a member for 18 months or more he/she will receive a coupon booklet allowing him/her to hire 4 movies for free. If during that same 18 months he/she has hired at least 12 videos, he/she will receive an additional 3 free movie hire vouchers. If the customer’s membership is less than 18 months and he/she has hired at least 12 videos then he/she will receive 2 free movie hire vouchers. All members will receive a Thank You letter and “Yentia Obiaa” music video.

Construct a Decision Tree for the above scenario.

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Introduction

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Step 1: List the conditions:

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Step 2: Arrange the conditions and respective outcomes:

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Step 3: Decision Tree

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Conclusion

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