Question

In: Operations Management

. A process description for “Pay Commission" is provided below:            For each COMMISSION EARNED           ...

. A process description for “Pay Commission" is provided below:

           For each COMMISSION EARNED

                        If EXTRA BONUS equals Y

                                  If PAYMENT TOTAL is greater than $80,000

                                                Add 3% to COMMISSION PERCENT

                                                Output SPECIAL LETTER

                                                Output AWARD LIST

                                           Else   Add 2% to COMMISSION PERCENT

                                                  Output AWARD LIST

                Else

                                    If PAYMENT TOTAL is greater than $80,000

Add 1% to COMMISSION PERCENT

                                                Output SPECIAL LETTER

                                   

Calculate COMMISSION = COMMISSION PERCENT times PAYMENT TOTAL

    Required:

    Construct a Decision Table for the above process description.

Solutions

Expert Solution

While if else statement is for system understanding Decision Table is better understood by individuls and management personnel.

Decision tables are a tabular and concise representation of step by step procedure which specify which action needs to be performed depending on which conditions.

To prepare decision table for above if-else statement we break the if else statement in four columns i.e condition , action, output and result

Condition Action Output Result : Total Commission
  • Extra Bonus Y
  • Payment Total < $ 80,000
  • Add 2% to Commission Percent
  • Award List
  • Commission = 2% of Payment Total
  • Extra Bonus Y
  • Payment Total > $ 80,000
  • Add 3% to Commission Percent
  • Special Letter
  • Award List
  • Comission = 3% of Payment Total
  • Payment Total > $ 80,000
  • Ad 1% to Commission Percent
  • Special Letter
  • Comission = 1% of Payment Total

There are many more ways of making a decision tree (can also be done in excel) and this is a simplest form of decison table.


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