Tuesday, April 20, 2010

Summarize 2.3.1 including the influence chart

Section 2.3.1 is the first example of an influence chart that illustrates profit, which according to the text is defined as the outcome measure. To determine profit you need to know total revenue (product of quantity sold and unit cost) and total cost.
The hexagon represents outputs, boxes represents decisions, circles represent variables, triangles represent variables as inputs and double circles represent variables that are random.

No comments:

Post a Comment