ReviewMidterm2Spring17 - DS 412 Review for Midterm#2 Julia Miyaoka 1 Topics Covered Decision Analysis Inventory Management EOQ\/ROP Newsvendor Fixed

ReviewMidterm2Spring17 - DS 412 Review for Midterm#2 Julia...

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1 DS 412 Review for Midterm #2 Julia Miyaoka
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2 Topics Covered Decision Analysis Inventory Management EOQ/ROP, Newsvendor & Fixed Order Interval No ABC Project Management Scheduling No Crashing or Risk Management
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3 About the Exam Closed book; One page of notes. 4 problems. There will be assigned seating. Show your work. Bring your calculator & ID. Normal table will be provided.
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4 Decision Analysis: Decision Making Under Uncertainty Criteria Description Maximin Determine the worst payoff for each alternative, then pick the best. Maximax Determine the best payoff for each alternative, then pick the best. Laplace Determine the average for each alternative, then pick the best. Minimax Regret Calculate the regret matrix. Determine the largest regret for each alternative, then pick the smallest one.
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Decision Making Under Risk Expected Monetary Value Possible Future Demand Alternatives Low (.30) Moderate (.50) High (.20) Small Facility $10 $10 $10 Medium Facility 7 12 12 Large Facility (4) 2 16 EMV small = 10 EMV medium = 7 x 0.30 + 12 x 0.50 + 12 x 0.2 = 10.5 EMV large = -4 x 0.30 + 2 x 0.5 + 16 x 0.20 = 3.0 Payoff Table
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