An operations manager 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 three states of nature represent three levels of consumer demand for the firm's products. Values in the table are net present values of future profits in millions of dollars. Show your workings in a table format to get credit for your answers. High Medium Low Demand Demand Demand Alternative A 90 72 86 Alternative B 70 34 95 Alternative C 41 88 100 Alternative D 85 69 55 Which alternative is best according to maximax criterion? Which alternative is best according to maximin criterion? If the states of nature were equally likely, what is the expected value of each alternative and which alternative should be chosen? Construct a regret table, and determine which alternative is best according to minimax regret criterion? If further study revealed that the probability of high demand is 0.5, the probability of medium demand is 0.3, and the probability of low demand is 0.2, which alternative is best? If the coefficient of optimism (α) is 0.6, which alternative is best according to Hurwicz criterion?
Critical Path Method
The critical path is the longest succession of tasks that has to be successfully completed to conclude a project entirely. The tasks involved in the sequence are called critical activities, as any task getting delayed will result in the whole project getting delayed. To determine the time duration of a project, the critical path has to be identified. The critical path method or CPM is used by project managers to evaluate the least amount of time required to finish each task with the least amount of delay.
Cost Analysis
The entire idea of cost of production or definition of production cost is applied corresponding or we can say that it is related to investment or money cost. Money cost or investment refers to any money expenditure which the firm or supplier or producer undertakes in purchasing or hiring factor of production or factor services.
Inventory Management
Inventory management is the process or system of handling all the goods that an organization owns. In simpler terms, inventory management deals with how a company orders, stores, and uses its goods.
Project Management
Project Management is all about management and optimum utilization of the resources in the best possible manner to develop the software as per the requirement of the client. Here the Project refers to the development of software to meet the end objective of the client by providing the required product or service within a specified Period of time and ensuring high quality. This can be done by managing all the available resources. In short, it can be defined as an application of knowledge, skills, tools, and techniques to meet the objective of the Project. It is the duty of a Project Manager to achieve the objective of the Project as per the specifications given by the client.
An operations manager 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 three states of nature represent three levels of consumer demand for the firm's products. Values in the table are
High Medium Low
Demand Demand Demand
Alternative A 90 72 86
Alternative B 70 34 95
Alternative C 41 88 100
Alternative D 85 69 55
- Which alternative is best according to maximax criterion?
- Which alternative is best according to maximin criterion?
- If the states of nature were equally likely, what is the expected value of each alternative and which alternative should be chosen?
- Construct a regret table, and determine which alternative is best according to minimax regret criterion?
- If further study revealed that the probability of high demand is 0.5, the probability of medium demand is 0.3, and the probability of low demand is 0.2, which alternative is best?
- If the coefficient of optimism (α) is 0.6, which alternative is best according to Hurwicz criterion?
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