APPLICATION OF THE DECISION TREE IN VEHICLE PROCUREMENT DECISION MAKING

Abstract

This paper discusses the problems of decision making when not all parameters for decision making are known, i.e. when future events must be predicted without the probabilities of events being known. Decision making under uncertainty has a very important role in today's business. Due to the lack of information and the unknown future state of the environment, decision makers find themselves in very ungrateful situations. The application of different decision making methods facilitates the decision making process. This paper describes the efficient application of the decision tree method to the vehicle procuring problem. A decision tree is a very good and simple tool which can expedite reaching an efficient solution and is extremely suitable for presentation due to its visual appeal. For the observed problem, a solution using the proposed decision tree method is presented under uncertainty during the procurement of vehicles. Calculation was performed to obtain a result, which is presented in graphical form.