1. DIHL Co. isa Danao-based logisiCs company owned by Engr. Donaid H. Lalican. Antcipating thegrowing demand for delivery services, he developed a strategic plan for the year 2022. The options areto hire additional delivery crews in their Mandaue facility, construct a new facity in Talisay City, orsubcontract Ohiala Move, a smal-time company. A study conducted by the marketing departmentforecasted the following payoff values, which are summartzed in the tabie below. The values areexpressed as gains and alpha = 0.6. What decision will Engr. Lalcan make using the different criteriaunder conditions of uncertainty. Question is what is the worst possible decision he will make?States of NatureDecision AlternativesFailureLowModerateHighHire additional Drivers in Mandaue450,000250,000250,000500,000Construct a facility in Talisay800,000400,000300,000700,000Subcontracting Ohlala Move100,00010,000150,000300,000

1. DIHL CO.sa Danao-based logistcs company owned by Engr. Donaid H. Lalican. Antcipating the growing demand for delivery services, he developed a strategic plan for the year 2022. The options are to hire addtional delivery crews in their Mandaue facity, construct a new facity in Talkay City, or subcontract Onicla Move, a smal time company. A study conducted by the marketing department forecasted the following payof values, which are summarized in the table below. The values are expressed as gains and alpha = 0.6. What decision wil Engr. Lalcan make using the different crteria under condiftions of uncertainty. Question is what is the worst posibie decidion he wil maket States of Nature Decision Alternatives Failure Low Moderate High Hire additional Drivers in Mandaue 450,000 250,000 250,000 500,000 Construct a faciity in Talisay 800,000 400,000 300,000 700,000 Subcontracting Ohiala Mo 100,000 -40,000 150,000 300,000

1. DIHL CO.sa Danao-based logistcs company owned by Engr. Donaid H. Lalican. Antcipating the growing demand for delivery services, he developed a strategic plan for the year 2022. The options are to hire addtional delivery crews in their Mandaue facity, construct a new facity in Talkay City, or subcontract Onicla Move, a smal time company. A study conducted by the marketing department forecasted the following payof values, which are summarized in the table below. The values are expressed as gains and alpha = 0.6. What decision wil Engr. Lalcan make using the different crteria under condiftions of uncertainty. Question is what is the worst posibie decidion he wil maket States of Nature Decision Alternatives Failure Low Moderate High Hire additional Drivers in Mandaue 450,000 250,000 250,000 500,000 Construct a faciity in Talisay 800,000 400,000 300,000 700,000 Subcontracting Ohiala Mo 100,000 -40,000 150,000 300,000

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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