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JYPE is contemplating the future of one of its plants located in South Korea. Three alternative decisions are being considered: (1) Expand the plant and produce lightweight, durable materials for possible sale to the military market, a market with little foreign competition; (2) maintain the status quo at the plant, continuing production of textile goods that are subject to heavy foreign competition; or (3) sell the plant now. if one of the first two alternatives is chosen, the plant will still be sold at the end of the year. The amount of profit that could be earned by selling the plant in a year depends on foreign market conditions, including the status of a trade embargo bill in Congress. The payoff table is presented in a separate file. (PICTURE ATTACHED) Determine the best decision using each of the decision criteria: 1. Maximax 2. Maximin 3. Minimax regret.

JYPE is contemplating the future of one of its plants located in South Korea. Three alternative decisions are being considered: (1) Expand the plant and produce lightweight, durable materials for possible sale to the military market, a market with little foreign competition; (2) maintain the status quo at the plant, continuing production of textile goods that are subject to heavy foreign competition; or (3) sell the plant now. if one of the first two alternatives is chosen, the plant will still be sold at the end of the year. The amount of profit that could be earned by selling the plant in a year depends on foreign market conditions, including the status of a trade embargo bill in Congress. The payoff table is presented in a separate file. (PICTURE ATTACHED) Determine the best decision using each of the decision criteria: 1. Maximax 2. Maximin 3. Minimax regret.

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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JYPE is contemplating the future of one of its plants located in South Korea. Three alternative decisions are being considered: (1) Expand the plant and produce lightweight, durable materials for possible sale to the military market, a market with little foreign competition; (2) maintain the status quo at the plant, continuing production of textile goods that are subject to heavy foreign competition; or (3) sell the plant now. if one of the first two alternatives is chosen, the plant will still be sold at the end of the year. The amount of profit that could be earned by selling the plant in a year depends on foreign market conditions, including the status of a trade embargo bill in Congress. The payoff table is presented in a separate file. (PICTURE ATTACHED)

Determine the best decision using each of the decision criteria:

1. Maximax

2. Maximin

3. Minimax regret.

PAYOFF TABLE FOR JYPE States of Nature Good Foreign Competitive Conditions Poor Foreign Competitive Conditions Decision Expand Maintains Status Quo $800,000 1,300,000 320,000 $500,000 -150,000 320,000 Sell Now
Transcribed Image Text:PAYOFF TABLE FOR JYPE States of Nature Good Foreign Competitive Conditions Poor Foreign Competitive Conditions Decision Expand Maintains Status Quo $800,000 1,300,000 320,000 $500,000 -150,000 320,000 Sell Now
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