QUESTION 12(Using the same problem) A vendor for the local ballpark food stand is questioning whether to stock his concession with a large or smallinventory. He believes that it will depend upon the size of the crowd. He has developed a payoff matrix for the various alternatives (stockingdecision) and states of nature (size of crowd). What is the answer using the criterion of minimax regret?AlternativesLarge InventorySmall InventoryProbabilityO A) -$2,000O B) $130,000O C) $0O D) $20,000O E) $153,400LargeCrowd$220,000$90,000.20PROFIT ($)AverageCrowd$50,000$70,000.50SmallCrowd-$2,000-$5,000.30

The minimax regret approach is a decision-making technique that involves minimizing the maximum…

Answered: (Using the same problem) A vendor for…

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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The option attempts to absorb the demand fluctuations is : Capacity option Demand option
Andrew Thomas, a sandwich vendor at hard rock café annual rockfest, created a table of conditional values for the various alternatives (stocking decision) and state of nature (size of crowd) Alternatives Large stock average stock small stock probabilities associated with states of nature are Big Big 35000 20000 10500 0.3 State of nature (demand) Average Small 15000 10000 8000 Average 0.5 determine the alternative that gives Andrew the greatest expected monetary value (EMV) compute the extpected value of perfect information (EVPI). Small -3000 5000 3000 0.2
Deborah Holwager, a concessionaire for the Amway Center in Orlando, has developed a table of conditional values for the various alternatives (stocking decision) and states of nature (size of crowd) Alternatives States of Nature (size of crowd) Large Average Small Large Inventory Ave yge Inventory Smal Inventory $12,000 -51,000 $18,000 $15.000 $16,000 $4,000 $10,000 $5,000 Probabilities associated with the states of nature are 0.35 for a large crowd, 0.50 for an average crowd, and 0.15 for a small crowd. $6.000 a) The alternative that provides Deborah the greatest oxpected monetary value (EMV) is The EMV for this decision is s (enter your answer as a whole number).
3
QUESTIONS (Using the same problem) A vendor for the local ballpark food stand is questioning whether to stock his concession with a large or small inventory. He believes that it will depend upon the size of the crowd. He has developed a payoff matrix for the various alternatives (stocking decision) and states of nature (size of crowd). What is the Expected Monetary Value (EMV)? Alternatives Large Inventory Small Inventory Probability OA) $68,400 O B)-$20,000 O C) $10,000 O D) $51,500 O E) $78,400 Large Crowd $220,000 $90,000 .20 PROFIT ($) Average Crowd $50,000 $70,000 .50 Small Crowd -$2,000 -$5,000 .30
The average basket size per purchase per agent in the fashion category in April is Rp.180.000,-. A third of agents made only 1 purchase that month. A third made 2 purchases that month. The rest made an average of 3.5 purchases that month. What % of agents in April bought fashion? Sales of ABC Fashion category comes from two merchants: Verry Venka (VV) and Vuka Lavak (VL). VV typically constitutes 40% of the fashion sales in ABC. VV's COO came to us and said, "Let's make our relationship stronger. We would like to be the merchant of your agents." VV decided to launch a free shipping promotion for ABC agents during the 2ndhalf of May. The promotion is expected to grow VV's sales at ABC by 45% for the remainder of the month, over current forecasted figures for the rest of May. In addition to that, a third of VL's sales are expected to be shifted to VV. If this happens, by what % will ABC's overall fashion sales exceed target in May? If this happens, what % of fashion sales will come from…
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4 (Using the same problem) A vendor for the local ballpark food stand is questioning whether to stock his concession with a large or small inventory. He believes that it will depend upon the size of the crowd. He has developed a payoff matrix for the various alternatives (stocking decision) and states of nature (size of crowd). What is the Expected Monetary Value (EMV)? Alternatives Large Inventory Small Inventory Probability A) $68,400 O B)-$20,000 O C) $10,000 O D) $51,500 O E) $78,400 Large Crowd $220,000 $90,000 .20 PROFIT ($) Average Crowd $50,000 $70,000 .50 Small Crowd -$2,000 -$5,000 30
Taylor Smith owns a small clothing company, Cuteness for You, that offers an online subscription and personal shopping service targeted at busy families with children aged newborn to five years old. Currently, Taylor has one level of subscription service, the standard service. For $100 a month, the standard service provides its customers a monthly delivery of 10 clothing items carefully chosen to match the child's size, gender, and emerging style. The online clothing subscription market is fairly new but is growing rapidly and thus Taylor is considering extending the product line to increase its market share and profits. Taylor is debating whether to add a premium subscription service featuring profitable high-markup items for $125 per month, a basic subscription service that contains lower-markup popular items priced at $75 per month, or possibly both. Taylor knows that the new product lines provide an opportunity to attract more customers and possibly increase revenues and profit,…

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