Captain Ferdinand's Magellan Trip - My ancestor's decisions
Francis Magellan was at home in the comfort of his sofa, and
looked at the earth globe next to him and remembered the story of his ancestor
Ferdinand Magellan.
He started pointing with his finger the path done by his
forebear and started wondering what kind of decisions he had to take while
travelling around the world.
One particular part of the journey that always kept the
attention to Francis was the stop in Porto San Julian (current Argentina).
Due to a mutiny among the fleet he had to make his own decision making process: 1- Obtain information among the sailors, 2- Predict about the Future Cost (return back to Spain and risk to be killed by the king), 3 - choose an alternative (continue his trip and achieve glory),4- going ahead with the decision that would mean fight back the future rebellion/mutiny.
Captain Magellan knew that the unavoidable costs whatever the
decision was (there was no food, and they would probably not survive until
reaching Spain again, the same if they continue the trip) it would be huge! However, he had nothing to lose just to gain as the eternal glory could be guaranteed if
they reach their goal.
The opportunity cost of making the decision of going against
the mutiny was the loss of 2 of the 5 caravels that initiated the trip. As a
result, Captain Magellan had some capacity constrains he had to deal with as
there was not enough space in the caravels and he had decide the most important product among all to proceed the trip...
And can you guess the decision rule?
Wine! He knew that what would bring him the biggest contribution margin
among the all products! At that time it was the fuel the sailors need to
continue the trip!
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