1. DİHL Co. is a Danao-based logistics company owned by Engr. Donald H. Lalican. Anticipating 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 facility in Talisay City, orsubcontract Ohlala Move, a small-time company. A study conducted by the marketing departmentforecasted the following payoff values, which are summarized in the table below. The values areexpressed as gains and alpha = 0.6. What decision will Engr. Lalican 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 Mandaue-450,000-250,000250,000500,000Construct a facility in Talisay-800,000-400,000300,000700,000Subcontracting Ohlala Move-100,000-10,000150,000300,000 Subcontracting Ohlala Move-100,000-10,000150,000300,000

Given data: States of Nature Decision Alternatives Failure Low Moderate High Hire…

Answered: DIHL Co. is a Danao-based logistics…

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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