Homework2 Solution.pdf - Homework#2 Solution 1. MCZ...

This preview shows page 1 - 2 out of 5 pages.

The preview shows page 1 - 2 out of 5 pages.
Homework#2 Solution1.MCZ Drilling ProductsMick Karra is the manager of MCZ Drilling Products, which produced a variety ofspecialty valves for oil field equipment. Recent activity in the oil fields has caused demandto increase drastically, and a decision has been made to open a new manufacturing facility.Three locations are being considered. The following table gives the estimated total monthlycost (in $1,0000s) for each possible location under each demand possibility.LocationsLow DemandMedium DemandHigh DemandArdmore, OK85110Sweetwater, TX90100Lake Charles, LA110120SolutionAlternativesDemandOptimisticPessimisticLowMediumHighBest Cost(Lowest)Worst Cost(Highest)Ardmore8511015085Sweetwater9010012090Lake Charles1101201301101.1which location would be selected based on the optimistic criterion?150120130150120130
1.2Which location would be selected based on the pessimistic criterion?
1.3Develop the opportunity loss table for this situation30525
1.4Which location would be selected based on the minimax regret criterion?

Upload your study docs or become a

Course Hero member to access this document

Upload your study docs or become a

Course Hero member to access this document

End of preview. Want to read all 5 pages?

Upload your study docs or become a

Course Hero member to access this document

Term
Fall
Professor
NoProfessor
Tags
Minimax

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture