OPERATIONS STRATEGY MGMT 707 Ellisson Seafood Company DECISION TREE Assignment

Sheet1

Operations Strategy MGMT 707
Decision Tree Solution
Ellisson Seafood Transportation Cost.
	# of	$ per .	Annual	Cost per	Total	Probability	Decision	Weighted
	Shipments	Shipment	Cost	year	Costs		Cost	Cost
Common	30	$750	$0	$22,500	$22,500	25%	$5,625
	50			$37,500	$37,500	60%	$22,500	$37,125
	80			$60,000	$60,000	15%	$9,000
Contract	30	$300	$5,000	$9,000	$14,000	25%	$3,500
	50			$15,000	$20,000	60%	$12,000	$19,850
	80			$24,000	$29,000	15%	$4,350
Lease	30	$50	$21,000	$1,500	$22,500	25%	$5,625
	50			$2,500	$23,500	60%	$14,100	$23,475
	80			$4,000	$25,000	15%	$3,750

Sheet2

Sheet3

Contract303030505050808080(25%) $22,500 $5,625(25%) $14,000 $3,500(25%) $22,500 $5,625(60%) $37,500 $22,500(60%) $20,000 $3,500(60%) $23,000 $14,000(15%) $60,000 $9.000(15%) $29,000 $4,350

(15%) $25,000$3,750

$37,125$19,850

$23,475

Operations Management BUSS 232Decision Tree Solution Sec. AEllisson Seafood Transportation Cost

Contract303030505050808080(25%) $22,500 $5,625(25%) $14,000 $3,500(25%) $22,500 $5,625(60%) $37,500 $22,500(60%) $20,000 $3,500(60%) $23,000 $14,000(15%) $60,000 $9.000(15%) $29,000 $4,350

(15%) $25,000$3,750

$37,125$19,850$23,475Operations Management BUSS 232Decision Tree Solution Sec. AEllisson Seafood Transportation Cost