What is the best decision alternativeunder Maximax criterion? (Providecomplete decision table solution)DIHL Co. is a Danao-based logisticscompany owned by Engr. Donald H.Lalican. Anticipating the growingdemand for delivery services, hedeveloped a strategic plan for theyear 2022. The options are to hireadditional delivery crews in theirMandaue facility, construct a newfacility in Talisay City, orsubcontract Ohlala Move, a small-time company. A study conductedby the marketing departmentforecasted the following payoffvalues, which are summarized in thetable below. The values areexpressed as gains and alpha = 0.6.States of NatureDecision AlternativesFailureLowModerateHighHire additional Drivers in Mandaue-450,000-250,000250,000500,000Construct a facility in Talisay-800,000-400,000300,000700,000Subcontracting Ohlala Move-100,000-10,000150,000300,000Hire Additional Drivers in MandaueConstruct a Facility in TalisayO Subcontracting Ohlala MoveBoth Hiring Additional Drivers inMandaue and Subcontracting OhlalaMoveO Other:

Answered: What is the best decision alternative…

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 manager of the greeting card section of Mazey’s department store is considering her order for a particular line of Christmas cards. The cost for each box of cards is $3; each box will be sold for $5 during the Christmas season. After Christmas, the cards will be sold for $2 a box. The card section manager believes that all leftover cards can be sold at that price. The estimated demand during the Christmas season for the line of Christmas cards, with associated probabilities, is shown as follows. Demand (boxes) Probability 25 26 27 28 29 30 .10 .15 .30 .20 .15 .10 a. Develop the payoff table for this decision situation. b. Compute the expected value for each alternative, and identify the best decision. c. Compute the expected value of perfect information.
The Aggies will host Tech in this year’s homecoming football game. Based on advance ticket sales, the athletic department has forecast hot dog sales as shown in the following table. The school buys premium hot dogs for $1.50 and sells them during the game at $3.00 each. Hot dogs left over after the game will be sold for $0.50 each to the Aggie student cafeteria, where they will be used in making hotdog casserole.Sales Quantity Probability2,000 0.103,000 0.304,000 0.305,000 0.206,000 0.10Use a payoff matrix to determine the number of hot dogs to buy for the game.
Sports of All Sorts produces, distributes, and sells high-quality skateboards. Its supply chain consists of three factories (located in Detroit, Los Angeles, and Austin) that produce skateboards. The Detroit and Los Angeles facilities can produce 350 skateboards per week, but the Austin plant is larger and can produce up to 700 skateboards per week. Skateboards must be shipped from the factories to one of four distribution centers, or DCs (located in Iowa, Maryland, Idaho, and Arkansas). Each distribution center can process (repackage, mark for sale, and ship) at most 500 skateboards per week. Factory/DCs Detroit Los Angeles Austin 1 2 3 Retailers/DCs Just Sports Sports 'N Stuff Iowa The Sports Dude 25.00 35.00 40.00 8 9 4 1 Shipping Costs ($ per skateboard) Iowa 30.00 27.50 Maryland 30.00 25.00 4 45.00 40.00 Skateboards are then shipped from the distribution centers to retailers. Sports of All Sorts supplies three major U.S. retailers: Just Sports, Sports 'N Stuff, and The Sports…
Two vaccination schemes are recently adopted in Lebanon, Pfizer and Astrazenica The profit for each one of these is dependent on the site (clinic or hospital) performing the vaccination process. This is shown in the following payoff table. Ministry of health considering the maximum profit to be able to cover the cost of staff where vaccination process can either be in a small clinics, or medium size hospitals or in main hospitals Alternative capacity for new store Pfizer Astrazenica Clinics 10 Small Hospitals Main Hospitals 7 6. 3 (a) Assume the payoffs represent profits. Determine the alternative that would be chosen under each of these decision criteria: Maximin, Maximax, Laplace, In your own opinion, which alternative likely to be excluded and why? (b) The ministry of health would like to check the possible loss. Find out the minimax regret table and identify the recommended alternative. (c) Assuming the probability of getting Pfizer is 0.6 and getting Astrazenica is 40%, determine…
Explain corner-point feasible (CPF) solution?
Customers arrive to a local bakery with an average time between arrivals of5 minutes. However, there is quite a lot of variability in the customers’ arrivals, asone would expect in an unscheduled system. The single bakery server requires anamount of time having the exponential distribution with mean 4.5 minutes to servecustomers (in the order in which they arrive). No customers leave without service.d. Calculate the probability a customer will spend more than an hour at the bakery(time in queue plus service time).
Prescott Industries transports sand and stone extracted from its open-pit mines located in Odessa and Bryan to its concrete block manufacturing facilities in Abilene, Tyler and San Angelo. For the capacities, locations, and shipment costs per truckload shown in the tableau below, determine the shipping pattern that will minimize transportation costs. What are the estimated transportation costs associated with this optimal allocation pattern? Source Odessa Bryan Demand Source Odessa Bryan Abilene $90 Demand $45 4,500 Abilene $90 $45 Destination Tyler 4,500 $25 $90 Fill in the tableau below by indicating the optimal number of shipments from a source to a destination in each cell. (Enter your responses as whole numbers. A response of "0" is equivalent to no shipments being planned.) The corresponding optimal total cost is $ 8,400 Destination Tyler $25 $90 San Angelo $75 8,400 $50 6,100 San Angelo $75 $50 Capacity 6,100 8,400 10,600 Capacity 8,400 10,600 (Enter your response as a whole…
Lorraine has received a lump sum of R500 000.00 from her retirement fund. She intends to use these funds to start a student accommodation business. In order to start this business, Lorraine would need approximately R1 million, funds are needed for building the students accommodation apartments and to register with various regulatory bodies. She has to source additional funding in order to realise this dream. In the business plan, Lorraine has outlined the following:• Accommodation will be offered ONLY to students in Cape Town, Johannesburg, Mpumalanga and Polokwane.• ONLY females will be approved to reside in these houses, between the age of 18 - 35.• Marketing of the business will be done on community Radio stations only at the four mentioned cities.• It is going to be a family business, Friends and relatives Q.4.2Suggest any TWO sources of finance that Lorraine should consider. Justify your choice.Tip: you will be awarded marks for theory and justification
5 X Month fx B C D E F G H Problem 7 Given the following forecast and cost information, determine the total cost of a chase plan that uses regular time production output of 400 units per month, overtime is used when needed up to a maximum of 40 units per month, and subcontracting is used if additional units are needed to meet the forecast. 1 2 3 45 6 Font Forecast Cover 440 400 450 460 480 490 Totals Problem 6 Accessibility: Investigate √5 Level Production. Production Overtime Problem 7 Alignment Subcontr acting Inventory Total Holding Cost Problem 8 Problem 18 F Number Ty Costs Formatting Table Styles Production Costs. Regular Overtime Subcontracting $ 555 E 50.00 65.00 75.00 Regular Time Overtime Subcontracting Total Cost M
Wiebe Trucking, Inc., is planning a new warehouse to servethe western United States. Denver, Santa Fe, and Salt LakeCity are under consideration. For each location, annual fixedcosts (rent, equipment, and insurance) and average variablecosts per shipment (labor, transportation, and utilities) arelisted in the following table. Sales projections range from500,000 to 600,000 shipments per year. a. Plot the total cost curves for all the locations on a singlegraph.b. Which city provides the lowest overall costs?
Micromedia offers computer training seminars on a variety of topics. In the seminars each student works at a personal computer, practicing the particular activity that the instructor is presenting. Micromedia is currently planning a two-day seminar on the use of Microsoft Excel in statistical analysis. The projected fee for the seminar is $610 per student. The cost for the conference room, instructor compensation, lab assistants, and promotion is $8,160. Micromedia rents computers for its seminars at a cost of $135 per computer per day. (a) Develop a model for the total cost (C) to put on the seminar. Let x represent the number of students who enroll in the seminar. C = (b) Develop a model for the total profit (P) if x students enroll in the seminar. P = (c) Micromedia has forecast an enrollment of 50 students for the seminar. How much profit will be earned if their forecast is accurate? P(50) = $ (d) Compute the break-even point. X =
Mount Isa Mines is one of the world’s great metal mines. Its main operations are at Mount Isa, in Queensland, Australia, where it mines adjacent deposits of copper and silver-lead-zinc ores. Production levels changes with world demand and prices, but in atypical year 7 million tonnes of ore are mined to give 150,000 tonnes of copper and lead (containing silver) and 200,000 tonnes of zinc. Mount Isa has serious transport problems. It produces huge quantities of ore in a remote area of Australia, while the main demand for finished metals is in the industrialised areas of the world, particularly Europe. The problem is to process the ores and move them to final markets as cheaply as possible. You can see the scope of the problem from an outline of the journey for copper, this starts with underground explosions to break up the ore body. The broken ore is collected by front-end loaders and put onto ore trains that carry it to underground crushers. The crushed ore is then hoisted to the…

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