Describe the difference between programmed and Nonprogrammed decisions. Provide an example of each type of decision.

Programmed decisions simply implement solutions that have already been determined by past experience as appropriate for the problem at hand. Examples of programmed decisions are reordering inventory automatically when stock falls below a predetermined level and issuing a written reprimand to someone who violates a certain work procedure. Nonprogrammed decisions are created to deal specifically with a unique problem at hand. An example is a senior marketing manager who has to respond to the introduction of a new product by a foreign competitor. Although past experience may help deal with this competitive threat, the immediate decision requires a creative solution based on the unique characteristics of the present market situation.