Douclamp, a steel manufacturer, invests heavily in three iron ore plants that it considers acquiring. The chief financial officer of Douclamp decides to acquire the plant that performs the best in the following year. In this scenario, Douclamp is most likely using _____.

Question

Quizplus · Accepted Answer

Douclamp is using options-based planning, as it has the option to acquire any of the three iron ore plants based on their performance in the following year.

Douclamp, a Steel Manufacturer, Invests Heavily in Three Iron Ore