What is the best of the worst decision alternative? DİHL Co. is a Danao-based logistics company owned by Engr. Donald H. Lalican. Anticipating the growing demand for delivery services, he 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 = 0.6. 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 O Hire Additional Drivers in Mandaue O Construct a Facility in Talisay O Subcontracting Ohlala Move Both Construct a Facility in Talisay and Subcontracting Ohlala Move O None of Them
What is the best of the worst decision alternative? DİHL Co. is a Danao-based logistics company owned by Engr. Donald H. Lalican. Anticipating the growing demand for delivery services, he 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 = 0.6. 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 O Hire Additional Drivers in Mandaue O Construct a Facility in Talisay O Subcontracting Ohlala Move Both Construct a Facility in Talisay and Subcontracting Ohlala Move O None of Them
Purchasing and Supply Chain Management
6th Edition
ISBN:9781285869681
Author:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
Publisher:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
ChapterC: Cases
Section: Chapter Questions
Problem 5.1SC: Scenario 3 Ben Gibson, the purchasing manager at Coastal Products, was reviewing purchasing...
Related questions
Question
![What is the best of the worst decision
alternative?
DİHL Co. is a Danao-based logistics
company owned by Engr. Donald H. Lalican.
Anticipating the growing demand for
delivery services, he 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 = 0.6.
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
Hire Additional Drivers in Mandaue
Construct a Facility in Talisay
O Subcontracting Ohlala Move
Both Construct a Facility in Talisay and
Subcontracting Ohlala Move
None of Them](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fabbc5cba-661c-48a4-8b54-f51e0e7d64bd%2Fe2dc7f22-b5c2-4166-be55-57728250f79d%2Fqkfxduf_processed.jpeg&w=3840&q=75)
Transcribed Image Text:What is the best of the worst decision
alternative?
DİHL Co. is a Danao-based logistics
company owned by Engr. Donald H. Lalican.
Anticipating the growing demand for
delivery services, he 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 = 0.6.
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
Hire Additional Drivers in Mandaue
Construct a Facility in Talisay
O Subcontracting Ohlala Move
Both Construct a Facility in Talisay and
Subcontracting Ohlala Move
None of Them
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