Discuss a time when you have used each tool for a business-related decision.

Cost benefit analysis is often used when considering whether or not to invest in capital projects. For example, recently we were considering the purchase of new machinery for the production line. Using cost-benefit analysis, I calculated the expected costs associated with purchasing and maintaining the machinery against its expected benefits such as increased efficiency and reduced labor costs over time. After weighing these factors against each other and assessing their long term implications for our bottom line, we decided that it was indeed worth investing in this project.

Likewise, decision trees are also useful when making complex decisions with multiple possible outcomes. Recently we needed to decide how best to meet increasing customer demand while minimizing disruption to our production schedule due to limited resources. Using a decision tree diagramed out all possible options based on different criteria such as budget constraints, lead times and resource availability, allowing us to choose the most efficient path forward while avoiding any potential pitfalls along the way.