SBC Packers Co. is a logistics company owned by Engr. Sheera Bee Cabanlit. Anticipating the growing demand for delivery services, she developed a strategic plan for the year 2022. The options are to hire additional delivery crews in their Mandaue facility, construct a new facility in Talisay City, or subcontract Ohlala Move, a small-time company. A study conducted by the marketing department forecasted the following payoff values, which are summarized in the table below. The values are expressed as gains and alpha = 0.4. *   Which decision alternative has a minimum payoff value from the maximum regrets? Which realism approach decision alternative has maximum payoff?

Principles of Management
OER 2019th Edition
ISBN:9780998625768
Author:OpenStax
Publisher:OpenStax
Chapter2: Managerial Decision-making
Section2.3: Programmed And Nonprogrammed Decisions
Problem 2CC: Give an example of a nonprogrammed decision.
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SBC Packers Co. is a logistics company owned by Engr. Sheera Bee Cabanlit. Anticipating the growing demand for delivery services, she developed a strategic plan for the year 2022. The options are to hire additional delivery crews in their Mandaue facility, construct a new facility in Talisay City, or subcontract Ohlala Move, a small-time company. A study conducted by the marketing department forecasted the following payoff values, which are summarized in the table below. The values are expressed as gains and alpha = 0.4. *

 

Which decision alternative has a minimum payoff value from the maximum regrets?

Which realism approach decision alternative has maximum payoff?

States of Nature
Decision Alternatives
Failure
Low
Moderate
High
Hire additional Drivers in Mandaue
-450,000
-250,000
250,000
500,000
Construct a facility in Talisay
-800,000
-400,000
300,000
700,000
Subcontracting Ohlala Move
-100,000
-10,000
150,000
300,000
Transcribed Image Text:States of Nature Decision Alternatives Failure Low Moderate High Hire additional Drivers in Mandaue -450,000 -250,000 250,000 500,000 Construct a facility in Talisay -800,000 -400,000 300,000 700,000 Subcontracting Ohlala Move -100,000 -10,000 150,000 300,000
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