APPLICATION OF DECISION TREE IN DECISION MAKING OF FIRMS IN THE MANUFACTURING SECTOR: A STUDY OF AKER NIGERIA LIMITED, PORT HARCOURT, RIVERS STATE

Abstract

This study focused on the application of Decision Tree in decision making of firms in the manufacturing industry, with reference to Aker Nigeria Limited Port Harcourt. The objective of the study was to examine the effect of decision tree on effective decision making in Aker Nigeria Limited. The study makes use of secondary data obtained from the management of Aker Nigeria Limited. The study examined the two decision alternatives open to Aker Nigeria Limited; building a large plant and building a small plant which necessitated the use of the decision tree model to identifying the decision alternative with the highest payoff. The study proved that it was better to build a small plant with a payoff of 4.0 m than to build a large plant with a payoff of 3.4m. The implication of the work is that, it is of practical significance to Aker Nigeria limited, scholars, managers, businessmen and students alike. The paper recommended the use of the decision tree in other firms.