Operations and Supply Chain Management 9th edition
9th Edition
ISBN: 9781119320975
Author: Roberta S. Russell, Bernard W. Taylor III
Publisher: WILEY
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Textbook Question
Chapter 1.S, Problem 9P
Telecomp, a computer manufacturer with a global supply chain, is adding a new supplier for some of its component parts, and the suppliers it's considering are in China, India, Thailand, and the Philippines. As part of its risk management program Telecomp wants to assess the possible impact of a supplier shutdown in the event of a natural disaster, such as a flood, fire, or an earthquake. The following payoff table summarizes Telecomp's losses (in millions of dollars) for supplier shutdowns given different levels of event severity.
Determine the best decision using each of the following criteria.
- a. Minimm
- b. Minimax
- c. Equal likelihood
- d. Minimax regret
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Build-Rite Construction has received favorable publicity from guest appearances on a public TV home improvement program. Public TV programming decisions seem to be unpredictable, so Build-Rite cannot estimate the probability of continued benefits from its relationship with the show. Demand for home improvements next year may be either low or high. But Build-Rite must decide now whether to hire more employees, do nothing, or develop subcontracts with other home improvement contractors. Build-Rite has developed the following payoff table:
The best decision according to laplace criterion is alternative to what? and the weighted payoff for this decision is what?
Build-Rite Construction has received favorable publicity from guest appearances on a public TV home improvement program. Public TV programming decisions seem to be unpredictable, so Build-Rite cannot estimate the probability of continued benefits from its relationship with the show. Demand for home improvements next year may be either low or high. But Build-Rite must decide now whether to hire more employees, do nothing, or develop subcontracts with other home improvement contractors. Build-Rite has developed the following payoff table:
Demand for Home Improvements
Alternative
Low
Moderate
High
Hire
($250,000)
$100,000
$625,000
Subcontract
$100,000
$150,000
$415,000
Do nothing
$50,000
$80,000
$300,000
Which alternative is best, according to each of thefollowing decision criteria?a. Maximinb. Maximaxc. Laplaced. Minimax regret
Build-Rite Construction has received favorable publicity from guest appearances on a public TV home improvement
program. Public TV programming decisions seem to be unpredictable, so Build-Rite cannot estimate the probability
of continued benefits from its relationship with the show. Demand for home improvements next year may be either
low or high. But Build-Rite must decide now whether to hire more employees, do nothing, or develop subcontracts
with other home improvement contractors. Build-Rite has developed the following payoff table:
Demand for Home Improvements
Alternative
Low
Moderate
High
($140,000)
$86,000
$100,000
$138,000
$296,000
$130,000
$587,000
$416,000
$421,000
Hire
Subcontract
Do nothing
Which alternative is best, according to each of the following decision criteria?
a. The best decision according to maximin criterion is alternative
and the payoff for this decision is
$
(Enter your response as an integer.)
Chapter 1 Solutions
Operations and Supply Chain Management 9th edition
Ch. 1.S - Prob. 1PCh. 1.S - Prob. 2PCh. 1.S - Prob. 3PCh. 1.S - Prob. 4PCh. 1.S - Prob. 5PCh. 1.S - In Problem S1-5 assume that Nicole, with the help...Ch. 1.S - Prob. 7PCh. 1.S - Prob. 8PCh. 1.S - Telecomp, a computer manufacturer with a global...Ch. 1.S - Prob. 10P
Ch. 1.S - Prob. 11PCh. 1.S - Prob. 12PCh. 1.S - Prob. 13PCh. 1.S - Prob. 14PCh. 1.S - Prob. 15PCh. 1.S - Prob. 16PCh. 1.S - Prob. 17PCh. 1.S - Prob. 18PCh. 1.S - In Problem S1-18, assume the Weight Club is able...Ch. 1.S - Prob. 20PCh. 1.S - Prob. 21PCh. 1.S - Prob. 22PCh. 1.S - Prob. 23PCh. 1.S - Prob. 24PCh. 1.S - Prob. 25PCh. 1.S - Prob. 26PCh. 1.S - Prob. 27PCh. 1.S - Prob. 28PCh. 1.S - Prob. 29PCh. 1.S - Prob. 30PCh. 1.S - Prob. 31PCh. 1.S - Prob. 33PCh. 1.S - Prob. 34PCh. 1.S - Alex Mason has a wide-curving, uphill driveway...Ch. 1.S - Prob. 36PCh. 1.S - Prob. 39PCh. 1.S - Prob. 40PCh. 1.S - State University has three healthcare plans for...Ch. 1.S - The Orchard Wine Company purchases grapes from one...Ch. 1.S - Prob. 43PCh. 1.S - Prob. 1.1CPCh. 1.S - Prob. 2.1CPCh. 1.S - Evaluating Projects at Nexcom Systems Nexcom...Ch. 1 - Feeding America Each year, the Feeding America...Ch. 1 - Feeding America Each year, the Feeding America...Ch. 1 - Feeding America Each year, the Feeding America...Ch. 1 - Feeding America Each year, the Feeding America...Ch. 1 - Prob. 1QCh. 1 - What constitutes operations at (a) a bank, (b) a...Ch. 1 - Prob. 3QCh. 1 - Prob. 4QCh. 1 - Prob. 5QCh. 1 - Prob. 17QCh. 1 - What is the difference between an order winner and...Ch. 1 - Prob. 21QCh. 1 - Prob. 22QCh. 1 - Prob. 23QCh. 1 - Prob. 24QCh. 1 - Prob. 1PCh. 1 - Prob. 2PCh. 1 - Prob. 3PCh. 1 - Prob. 4PCh. 1 - Prob. 5PCh. 1 - Omar Industries maintains production facilities in...Ch. 1 - Rushing yardage for three Heisman Trophy...Ch. 1 - Carpet City recorded the following data on carpet...Ch. 1 - Prob. 9PCh. 1 - Prob. 10PCh. 1 - Prob. 11PCh. 1 - Prob. 12PCh. 1 - Prob. 13PCh. 1 - Prob. 14PCh. 1 - Prob. 15PCh. 1 - Prob. 1.1CPCh. 1 - Prob. 1.2CPCh. 1 - Prob. 1.3CPCh. 1 - Prob. 1.4CPCh. 1 - Prob. 1.5CPCh. 1 - Prob. 2.1CPCh. 1 - Prob. 2.2CP
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