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information acquisition device (DIAD) at the beginning of CHAPTER 4 • Foundations of Decision Making 137
committed to ORION, saying that “a driver together with
his shift each workday, what comes up are two possible ways ORION is better than each alone.” 61
to make the day’s package deliveries: one that uses ORION
and one that uses the “old” method. The driver can choose Discussion Questions
to use either one but if ORION is not chosen, the driver is 4-14 Why is efficiency and safety so important to UPS?
asked to explain the decision. The roll-out of ORION hasn’t 4-15 Would you characterize a driver’s route decisions as structured
been without challenges. Some drivers have been reluctant or unstructured problems? Programmed or nonprogrammed
to give up autonomy; others have had trouble understanding decisions? Explain.
ORION’s logic—why deliver a package in one neighborhood 4-16 How would ORION technology help drivers make better
in the morning and come back to the same neighborhood decisions? (Think of the steps in the decision-making process.)
later in the day. But despite the challenges, the company is 4-17 How is UPS being a sustainable corporation?

Case aPPliCation 2
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Galloping to the Right Decision

orseracing has rich traditions dating back to the first decision makers. Each decision can be the difference between
races in 4500 BC and the early civilizations of Central winning and losing. Not just a sport for pleasure, owners with
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HAsia, the Mediterranean, and Europe. Once consid- small and large pocketbooks seek returns on their investment.
ered the “Sport of Kings”, today’s horse racing has evolved in And a jockey’s livelihood for the month can be decided in a
to multi-billion dollar entertainment industry. Owners, jockeys, matter of seconds.
trainers, and horses travel the globe in search for a win. Crossing An owner must assess whether to invest in the potential
the finish line in one of the top three places can produce signifi- of young colt or buy an experienced mare. Pedigree, age, and
cant earnings from the modest past performance are just a few
racing circuits in small cities factors alongside sentiment.
to the extravagant payouts of Managing HORSE RACING . . . Tradition can influence a buyer
the most prestigious venues. In Numbers or Emotion, Which to seek a thoroughbred from
the Hong Kong circuit alone, Works Better? England’s hallowed breeding
winning owners can earn up to grounds in Newmarket or to
60% of prize money ranging lean toward the bloodline of
from $100,000 to over $3 million per weekly race over a season. an Arabian. Evaluating the return on investment must be weighed
A winning jockey and trainer can easily earn 10% each from an against the cost of ownership including training and boarding fees.
owner’s winnings. Decisions do not just rest in ownership. A jockey makes
Fans from all walks of life share in the enthusiasm as they split second decisions during a race while galloping at speeds
fill massive grand stands and hotel rooms. Hong Kong’s world exceeding 35mph. Not knowing a horse’s tendencies or using
class Happy Valley Racecourse can draw up to 55,000 spectators the wrong race strategy could lead to life threatening injury to
on any given night. The Dubai Cup with the largest purse in all horse or rider. A well prepared jockey studies course dimen-
of horseracing at a $10,000,000 attracts not only the top horses sions and the patterns of competitors. Horse preparation relies
in the world but entices tourists to visit the United Arab Emirates on the daily decision of trainer who must decide optimal diets
eager to experience the spectacular Meydon Hotel overlook- and appropriate equipment such as proper fitting horseshoes.
ing the Dubai racecourse. And the Kentucky Derby continues This extends to exercise routines monitored by data collected
to draw record-breaking crowds to the U.S. city of Louisville via smartphone apps and tracking of graphical data.
where ticket prices for this spectacle can range from $43 for gen- The rationality of science continues to permeate the sport.
eral admission tickets to $11,000 for an upper clubhouse seat. Race teams seek competitive advantage via genetic testing and
As the big business of horse racing continues to grow, risk aerobic measurements. Yet, at the end of the day, many deci-
and uncertainty in this high stakes affair looms heavy for its sions are still made by one’s love and feel for the horse.