2.) JK Chemicals have just finished the construction of a new chemical manufacturing plant overseas and is beginning to purchase raw materials to use in the manufacture of its products. Due to stiff competition and limited supplies, the company can only adopt one manufacturing strategy for the plant. An economic study had suggested the possible profits of the company according to different economic conditions; growing, stable and declining. Which manufacturing strategy should the company adopt? 1. Use the Maximin Criteria 2. Use the Maximax Criteria 3. Use the Hurwicz Alpha Criteria, alpha=0.75 4. Use the La Place Criteria Manufacturing Strategy Growing Economy Steady Economy Declining Economy $2,340,000 $896,000 $1,890,000 $950,000 $1,600,000 $700,000 $2,000,000 $780,000 $990,000 $789,000 $899,000 $500,000 $600,000 $345,000 $870,000 $213,400 $214,500 $234,800 $213,000 $500,000 A -874,300.00 100,000.00 -200,000.00 123,900.00 -100,000.00 200,000.00 -555,000.00 123,000.00 -1,000.00 -23,450.00 B D E F G H I J

2.) JK Chemicals have just finished the construction of a new chemical manufacturing plant overseas and is beginning to purchase raw materials to use in the manufacture of its products. Due to stiff competition and limited supplies, the company can only adopt one manufacturing strategy for the plant. An economic study had suggested the possible profits of the company according to different economic conditions; growing, stable and declining. Which manufacturing strategy should the company adopt? 1. Use the Maximin Criteria 2. Use the Maximax Criteria 3. Use the Hurwicz Alpha Criteria, alpha=0.75 4. Use the La Place Criteria Manufacturing Strategy Growing Economy Steady Economy Declining Economy $2,340,000 $896,000 $1,890,000 $950,000 $1,600,000 $700,000 $2,000,000 $780,000 $990,000 $789,000 $899,000 $500,000 $600,000 $345,000 $870,000 $213,400 $214,500 $234,800 $213,000 $500,000 A -874,300.00 100,000.00 -200,000.00 123,900.00 -100,000.00 200,000.00 -555,000.00 123,000.00 -1,000.00 -23,450.00 B D E F G H I J

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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