Discussion Post
Consider the two capacity options for Arktec manufacturing and the three possible demand scenarios. First, draw the decision tree for Arktec Manufacturing. When drawing your tree, assume that managers must select a capacity option before they know what the demand level will actually be. Then, calculate the expected value for each decision branch. Which option would you prefer and why?
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.
Required Resources
Text: Bozarth, C. C., & Handfield, R. B. (2016). Introduction to operations and supply chain management (4th ed.). Upper Saddle River, NJ: Pearson.
a) Chapter 3: Process choice and layout decisions in manufacturing and services
b) Chapter 6: Managing capacity
c) Chapter 14: Managing projects
d) Chapter 15: Developing products and services.