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ABC Inc. must make a decision on its current capacity for next year. Estimated profits (in $000s) based on next year's demand are shown in the table below.                      Next Year's Demand Alternative         Low        High Expand                $100       $200 Subcontract          $50        $120 Do nothing            $40        $50  Using the information above, which alternative should be chosen based on the maximin criterion?

ABC Inc. must make a decision on its current capacity for next year. Estimated profits (in $000s) based on next year's demand are shown in the table below.                      Next Year's Demand Alternative         Low        High Expand                $100       $200 Subcontract          $50        $120 Do nothing            $40        $50  Using the information above, which alternative should be chosen based on the maximin criterion?

Practical Management Science
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
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ABC Inc. must make a decision on its current capacity for next year. Estimated profits (in $000s) based on next year's demand are shown in the table below.

                     Next Year's Demand
Alternative         Low        High
Expand                $100       $200
Subcontract          $50        $120
Do nothing            $40        $50 

Using the information above, which alternative should be chosen based on the maximin criterion?

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