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Decision Making Process
Decision making is the process of choosing among alternatives. There are 7 steps that should be followed as shown in figure below:
Figure: The decision-making, planning and control processFigure above represents a diagram of a decision-making model. The first five stages symbolize the decision-making of the planning process. Planning includes making choices among alternatives and is mainly a decision-making activity. The final two stages symbolize the control procedure, which is the procedure of measuring and correcting real performance to ensure that the alternatives that are chosen and the plans for implementing them are carried out. Let consider each of the elements of the decision-making and control process.
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Ordering Costs These are incurred in getting purchased items into the company’s inventory or stores, and usually consist of clerical costs of: • Making the purchase demand.
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