Lewrice, an apparel manufacturer, has been finding it difficult to deliver its products to its retailers on time. The time taken to deliver the products has been more than the estimated time in almost all instances. The managers of the company have to make a decision on how to resolve the issue. In the context of rational decision making, which of the following is the first step that the managers should ideally take?
A) Computing the optimal decision
B) Identifying and defining the problem
C) Generating alternative courses of action
D) Identifying decision criteria

Question

Quizplus · Accepted Answer

The first step in rational decision making is to identify and define the problem. Without identifying the problem, it is difficult to generate alternative courses of action, identify decision criteria, or compute the optimal decision. Once the problem is defined, the managers can move on to other steps in the decision-making process.

Lewrice, an Apparel Manufacturer, Has Been Finding It Difficult to Deliver