Product Overview

The manager of a paper plant must decide whether to buy a new electrode boiler to replace a natural gas boiler. The challenge is to cut through complexities, such as uncertainty in boiler efficiency, energy prices, financing alternatives, and supplier/competitor relationships to arrive at a first-cut analysis and decision. Although the case is rich with issues, a considered decision can be made without using the sophisticated methods available to treat these complexities. The case is designed as an introductory class in which an agenda for a course in decision analysis/management science is established.