Given is a decision payoff table.AlternativesSmall FacilityMedium FacilityLarge FacilityLow2618-7Future DemandModerate213130High182242a) The best decision under uncertainty using MAXIMAX is to select Blank 1 facilityb) The best decision under uncertainty using MAXIMIN is to select Blank 2 facilityc) The best decision under uncertainty using LAPLACE/EQUALITY LIKELY is to select Blank 3 facilityd) If the probabilities for Future Demand when it is Low-0.35, Moderate -0.30, and High-0.35, the expected monetary value (EMV) forthe large facility-Blank 4. Small FacilityMedium FacilityLarge Facility2618-7213130182242a) The best decision under uncertainty using MAXIMAX is to select Blank 1 facilityb) The best decision under uncertainty using MAXIMIN is to select Blank 2 facilityc) The best decision under uncertainty using LAPLACE/EQUALITY LIKELY is to select Blank 3 facilityd) If the probabilities for Future Demand when it is Low-0.35, Moderate-0.30, and High-0.35, the expected monetary value (EMV) forthe large facility - Blank 4.e) If the probabilities for Future Demand when it is Low-0.35, Moderate-0.30, and High-0.35, the best decision under risk is to selectBlank 5 facility.

Answered: Given is a decision payoff table.…

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...

See similar textbooks

Similar questions

A landowner is considering a community development project. Even though he realizes that the current market for housing is not very favourable, he believes that there will be an influx of retirees into the area within the next five years. He is trying to decide between two alternatives: (1) building detached homes in a planned retirement community or (2) building a smaller townhouse/condominium complex. Mortgage interest rates will affect his outcomes as shown (in $ millions) in the accompanying payoff table. According to the maximax approach, what should the landowner do? Click the icon to view the payoff table. ..... A. Build townhouses/condominiums B. Build detached homes in a planned retirement community if interest rates go up, otherwise build townhouses/condominiums C. Build detached homes in a planned retirement community D. Build detached homes in a planned retirement community if interest rates go down, otherwise build townhouses/condominiums O E. Build detached homes in a…
The Zhao family of Atlanta, Georgia, is planning its annual summer vacation. Three vacation locations along with criteria weights and location ratings follow. What is the recommended vacation location? Criteria Travel distance Vacation Entertainment available Outdoor activities Unique experience Family fun O Myrtle Beach, South Carolina OSmoky Mountains Branson, Missouri Weight 2 5 3 2 4 5 Myrtle Beach, South Carolina 5 5 7 9 5 8 Ratings Smoky Mountains 9 6 4 6 9 9 Branson, Missouri 3 8 4 5 9 8
Decision Tree Analysis
The Giant Farmer Company processes food for salein discount food stores. It has two plants: one inChicago and one in Houston. The company also oper-ates warehouses in Miami, Florida; Denver, Colorado;Lincoln, Nebraska; and Jackson, Mississippi. Forecastsindicate that demand soon will exceed supply and thata new plant with a capacity of 8,000 cases per week isneeded. The question is where to locate the new plant.Two potential sites are Buffalo, New York, and Atlanta,Georgia. The two tables at the bottom of this page givedata on capacities, forecasted demand, and shippingcosts that have been gathered.For each alternative new plant location, determine the ship-ping pattern that will minimize total transportation costs.Where should the new plant be located?
The owner of the Party City Toronto Company must decide among building a mega centre store, building 5 new stores, or leasing 10 of their locations to another company. The profit that will result from each alternative will be determined by whether material costs remain stable, increase moderately, or increase significantly. In the payoff table below the estimated profits/losses are given in $thousands. Material Costs Stable Mega Centre Decision New Stores Leasing Determine the best decision using the Maximax decision criterion. 2130 Moderate Increase 1850 840 530 1050 940 O Decision: Mega Centre based on 2470 = max(2470,1850,1040) O Decision: Mega Centre based on 2130 = max(2130,1850,1040) Decision: Stable based on 2130 = max(2130,1050,1040) O Decision: Leasing based on 2820 = max(190,2750,2820) Significant Increase -2470 -150 1040
* 00 T 35 R Miles used the information on the table to develop a Decision Tree for this situation and indicate which type of truck should he select. What would Miles's decision be based on Baye's Decision Rule? $16,000 3. $19,000 2 $21,000 $15,000 .5 Compact 000'0 000 $24,000 2. Full-size .2 000 0 Subcompact Can't be determined with the information provided Compact All of the answer choices are correct Full size MacBook Air 000 000 DD F7 F2 F3 F5 F8 F4 & $ 9. 7. 4. J K
Determine Fall's seasonal factor from the information below. Seasons Past Sales Spring 350 Summer 200 Fall 600 Winter 450 Total 1,600 Group of answer choices a. 0.8 b. 1.8 c. 2.5 d. 1.5 e. 2.0
Location Fixed Cost Variable Cost A $100,000 $10 B $150,000 $7 C $200,000 $5 600 Annual 500 Cost ($000) 400 300 200 100 2 4 6 8 10 14 16 18 20 Q (000s of units) i. Plot the total cost curves in the chart provided above and identify the range over which each location would be best. ii. Use break-even analysis to calculate exactly the break-even quantity that defines each range.
Hillary’s Flight Operations offers maintenance and repair services for business jets located in Atlanta. They are considering whether they should expand their operations. Hillary has decided that they have a number of options—four to be precise. They can keep their current facilities; they can modify their facilities to make them more efficient; they can expand their current facility; or they can rent additional space. The decision as to which option they should select is predicated upon the estimation of the direction of the economy for the next four years. Hillary’s Flight Operations developed the following decision matrix. What option should Hillary’s Flight Operations make based on Maximax criterion? Future Air Traffic Alternatives Down Same Up Keep As Is ($40,000) $70,000 $100,000 Remodel ($60,000) $65,000 $200,000 Expansion ($150,000) $50,000 $400,000 Rent ($50,000) $60,000 $80,000 Group of answer choices
9
Mrs. Z, vice president for operations of XY, Inc., a manufacturer of imaginary product T, is constrained from meeting her 5-year forecast by limited capacity at the company’s two existing facilities, which are in San Diego, California (F1) and Grenville, South Carolina (F2). As her able assistant, you have been told that because of existing capacity constraints and the expanding market for the company’s product, a third plant is to be added. The real estate department has advised Mrs. Z that two potential sites seem particularly good, located in Waco, Texas (F3), and Norfolk, Nebraska (F4). The company ships the products to three demand markets in East (M1), Mid-West (M2), and West (M3), via its two cross-docking distribution centers in Colorado (D1) and Kentucky (D2). You are asked to find the optimal distribution strategy that will determine where the third facility be located (F3 or F4), and the best distribution pattern across the supply chain. The company consider the…
A manager received an analysis of several cities being considered for a new office complex. The data (10 points maximum) are as follows: Factor Business services Community services Real estate cost Construction costs Cost of living Taxes Transportation A с Thus, Location Score A A B с Thus, 17 17 17 8 6 4 3 2 8 9 B 6 6 Click here for the Excel Data File a. If the manager weights the factors equally, how would the locations stack up in terms of their composite factor rating scores? 8 7 7 19 19 19 5 7 is/are the best. C 6 7 7 6 8 b. If business services and construction costs are given weights that are double the weights of the other factors, how would the locations stack up? is/are best and 4 8 is/are least desirable.

SEE MORE QUESTIONS

Recommended textbooks for you

Practical Management Science

Operations Management

ISBN:

9781337406659

Author:

WINSTON, Wayne L.

Publisher:

Cengage,

Operations Management

ISBN:

9781259667473

Author:

William J Stevenson

Publisher:

McGraw-Hill Education

Operations and Supply Chain Management (Mcgraw-hi…

Operations Management

ISBN:

9781259666100

Author:

F. Robert Jacobs, Richard B Chase

Publisher:

McGraw-Hill Education

Practical Management Science

Operations Management

ISBN:

9781337406659

Author:

WINSTON, Wayne L.

Publisher:

Cengage,

Operations Management

ISBN:

9781259667473

Author:

William J Stevenson

Publisher:

McGraw-Hill Education

Operations and Supply Chain Management (Mcgraw-hi…

Operations Management

ISBN:

9781259666100

Author:

F. Robert Jacobs, Richard B Chase

Publisher:

McGraw-Hill Education

Business in Action

Operations Management

ISBN:

9780135198100

Author:

BOVEE

Publisher:

PEARSON CO

Purchasing and Supply Chain Management

Operations Management

ISBN:

9781285869681

Author:

Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson

Publisher:

Cengage Learning

Production and Operations Analysis, Seventh Editi…

Operations Management

ISBN:

9781478623069

Author:

Steven Nahmias, Tava Lennon Olsen

Publisher:

Waveland Press, Inc.

SEE MORE TEXTBOOKS