1. An operations manager's staff has compiled the information below for four manufacturing alternatives (A, B, C, and D) that vary by production technology and the capacity of the machinery. All choices enable the same level of total production and have the same lifetime. The four states of nature represent four levels of consumer acceptance of the firm's products. Values in the table are net present value of future profits in millions of dollars. Solve using the five criteria and choose the best alternative. a= 0.4, 0.2, 0.2, 0.2 respectively. Determine the best option using the following decision criteria: (a) Maximax (b) Maximin (c) Minimax Regret

1. An operations manager's staff has compiled the information below for four manufacturing alternatives (A, B, C, and D) that vary by production technology and the capacity of the machinery. All choices enable the same level of total production and have the same lifetime. The four states of nature represent four levels of consumer acceptance of the firm's products. Values in the table are net present value of future profits in millions of dollars. Solve using the five criteria and choose the best alternative. a= 0.4, 0.2, 0.2, 0.2 respectively. Determine the best option using the following decision criteria: (a) Maximax (b) Maximin (c) Minimax Regret

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter2: Introduction To Spreadsheet Modeling

Section: Chapter Questions

Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...

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Question

Please answer below attached problem solving of OPERATION RESEARCH and show solution per requirement. Thank you

1. An operations manager's staff has compiled the information below for four manufacturing alternatives (A, B,
C, and D) that vary by production technology and the capacity of the machinery. All choices enable the same
level of total production and have the same lifetime. The four states of nature represent four levels of consumer
acceptance of the firm's products. Values in the table are net present value of future profits in millions of
dollars. Solve using the five criteria and choose the best alternative. a= 0.4, 0.2, 0.2, 0.2 respectively.
Determine the best option using the following decision criteria: (a) Maximax (b) Maximin (c ) Minimax Regret
(d) Laplace and (e) Hurwicz
States of nature
1
2
3
4
Alternative A
50
55
60
65
Alternative B
30
50
80
130
Alternative C
70
80
70
65
Alternative D
-100
-10
150
220

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