Operations Management: Sustainability and Supply Chain Management (12th Edition)
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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Chapter A, Problem 6P
Summary Introduction

To determine: The approach to be taken for decision making process.

Introduction: Decision making Criteria

There are three decision making criteria under uncertainty

  1. 1. Maximax: Maximax is criteria that evaluates alternative that maximize the maximum outcome.
  2. 2. Maximin: It is a criteria that evaluate alternative that maximize minimum outcome.
  3. 3. Equally likely:  It is a criteria where equal probabilities is available in each of the state of nature.

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