Operations Management: Sustainability and Supply Chain Management (12th Edition)
12th Edition
ISBN: 9780134130422
Author: Jay Heizer, Barry Render, Chuck Munson
Publisher: PEARSON
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Textbook Question
Chapter A, Problem 1P
Given the following conditional value table, determine the appropriate decision under uncertainty using:
- a. Maximax
- b. Maximin
- c. Equally likely
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Students have asked these similar questions
3
Andrew Thomas, a sandwich vendor at Hard Rock Cafe's annual Rockfest, created a table of conditional values for the various alternatives (stocking decision) and
states of nature (size of crowd)
States of Nature (demand)
Average
$12,000
$9,000
$8,100
Big
Small
$22,000
-$2,000
Alternatives
Large Stock
Average Stock
Small Stock
$12,000
$6,000
$9,000
$4,000
The probabilities associated with the states of nature are 0.20 for a big demand, 0.45 for an average demand, and 0.35 for a small demand
a) The alternative that provides Andrew Thomas the greatest expected monetary value (EMV) is
Decision Making Under Uncertainty
In the Table, we apply the concept of Maximax choice, the Maxmin choice, and
the equally likely choice. Given the data/information in the Table, compute for the
row average. After that, determine the amount of the ROW AVERAGE that would
be adopted to be best alternative. The best alternative is the alternative with the
highest value of the row average. In this case, which option is more attractive?
Values in PhP
State of Nature
Favorable Unfavorable Maximum
Market
Minimum in
Row
Alternatives
Market
in Row
Row
Average
Project A
80,000.00
20,000.00 80,000.00
20,000.00
Project B
40,000.00
25,000.00 40,000.00
25,000.00
Project C
30,000.00 10,000.00
30,000.00 10,000.00
Project D (Do
Nothing)
Chapter A Solutions
Operations Management: Sustainability and Supply Chain Management (12th Edition)
Ch. A - Prob. 1DQCh. A - Prob. 2DQCh. A - Prob. 3DQCh. A - Prob. 4DQCh. A - Prob. 5DQCh. A - Question: 6. Explain how decision trees might be...Ch. A - Prob. 7DQCh. A - Prob. 8DQCh. A - Question 9. Identify the five steps in analyzing a...Ch. A - Prob. 10DQ
Ch. A - Question 11. The expected value criterion is...Ch. A - Question 12. When are decision trees most useful?Ch. A - Given the following conditional value table,...Ch. A - Prob. 2PCh. A - Prob. 3PCh. A - Jeffrey Helm owns a health and fitness center...Ch. A - Prob. 5PCh. A - Prob. 6PCh. A - Prob. 7PCh. A - Prob. 8PCh. A - Prob. 9PCh. A - Prob. 10PCh. A - The University of Miami bookstore stocks textbooks...Ch. A - Palmer Jam Company is a small manufacturer of...Ch. A - Prob. 13PCh. A - Prob. 14PCh. A - Prob. 21PCh. A - Prob. 22PCh. A - Prob. 23PCh. A - Prob. 24PCh. A - Prob. 25PCh. A - Prob. 26PCh. A - Philip Musa can build either a large video rental...Ch. A - Prob. 28PCh. A - Prob. 29PCh. A - Question A.24 On the opening page of Module A and...Ch. A - Question Warehouse Tenting at the Port of Miami...Ch. A - Question Warehouse Tenting at the Port of Miami...Ch. A - Question Warehouse Tenting at the Port of Miami...
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