Ma9 - Decision-making Strategies and Product life cycle 1...

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Decision-making, Strategies and Product life cycle 1. Decision-making under certainty: When a decision-maker faces certainty, he or she is able to identify the state of nature that will occur. Decision-makers are rarely able to make decisions under complete certainty. 2. Decision-making under uncertainty : When a decision-maker faces uncertainty, he or she cannot reasonably assign probabilities to certain states of nature. That is, there is complete uncertainty as to which state of nature will occur. 3. Decision-making under risk : When a decision-maker faces risk, he or she is able to identify several possible states of nature and can assign probabilities to each of these states of nature. 4. Introduction stage of the product life cycle : The stage during which operations managers are concerned about designing and developing the product so that they can get it to market. During this period, production runs are short and production costs are high. 5.
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