35. Suntrek, a global apparel company, is adding a new supplier for denim fabric that it uses to manufacture denim jeans, and the suppliers it's considering are located near the ports of Shanghai, Mumbai, Manila, Santos, and Veracruz. A major factor in the company's decision is transportation and shipping costs, which are dependent on several factors including port traffic, container costs, and future oil prices. The following payoff table summarizes the total monthly shipping costs (in $100,000s) for the suppliers in each of the ports, given the future state of related logistics costs. Logistics Costs Port Decrease Same Increase Shanghai $2.7 $3.9 $6.3 Mumbai 2.1 3.8 6.5 Manila 1.7 4.3 6.1 Santos 3.5 4.5 5.7 Veracruz 4.1 5.1 5.4 Determine the best decision using each of the following criteria. a. Minimin b. Minimax c. Equal likelihood d. Minimax regret
35. Suntrek, a global apparel company, is adding a new supplier for denim fabric that it uses to manufacture denim jeans, and the suppliers it's considering are located near the ports of Shanghai, Mumbai, Manila, Santos, and Veracruz. A major factor in the company's decision is transportation and shipping costs, which are dependent on several factors including port traffic, container costs, and future oil prices. The following payoff table summarizes the total monthly shipping costs (in $100,000s) for the suppliers in each of the ports, given the future state of related logistics costs. Logistics Costs Port Decrease Same Increase Shanghai $2.7 $3.9 $6.3 Mumbai 2.1 3.8 6.5 Manila 1.7 4.3 6.1 Santos 3.5 4.5 5.7 Veracruz 4.1 5.1 5.4 Determine the best decision using each of the following criteria. a. Minimin b. Minimax c. Equal likelihood d. Minimax regret
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
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Transcribed Image Text:35. Suntrek, a global apparel company, is adding a new supplier
for denim fabric that it uses to manufacture denim jeans, and the
suppliers it's considering are located near the ports of Shanghai,
Mumbai, Manila, Santos, and Veracruz. A major factor in the
company's decision is transportation and shipping costs, which
are dependent on several factors including port traffic, container
costs, and future oil prices. The following payoff table
summarizes the total monthly shipping costs (in $100,000s) for
the suppliers in each of the ports, given the future state of related
logistics costs.
Logistics Costs
Port
Decrease
Same Increase
Shanghai
$2.7
$3.9
$6.3
Mumbai
2.1
3.8
6.5
Manila
1.7
4.3
6.1
Santos
3.5
4.5
5.7
Veracruz
4.1
5.1
5.4
Determine the best decision using each of the following criteria.
a. Minimin
b. Minimax
c. Equal likelihood
d. Minimax regret
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