412DA-Examples-Abdu[1]

# 412DA-Examples-Abdu[1] - 2. ALKARNAK hospital buys blood...

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1. JAIPUR Express is setting up a delivery service near or in Delhi. JAIPUR is unsure whether to locate in the city, in a near suburb, or in a rural area. The city requires higher rent (fixed cost) but lower transportation expenses (variable costs). The costs are as follows: City Suburb Rural Fixed Cost \$ 1000 800 400 Variable cost \$/job 10 20 50 (I) find the break-even point (s). (ii) JAIPUR estimates the distribution of jobs for the coming year as follows Number of Jobs 6 10 15 25 Probability 0.2 0.3 0.3 0.2 Which of the three locations should be selected? Why?
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Unformatted text preview: 2. ALKARNAK hospital buys blood every 3 weeks from a blood bank at \$ 30 per pint. Any blood not used must be discarded after 3 weeks. If the hospital runs out of blood during the 3 weeks period, it makes an emergency purchase of blood of \$ 50 per pint. Demand estimates &amp; probabilities are as follows: No. of Pints per 3 weeks 100 120 160 200 Probability 0.1 0.4 0.3 0.2 (i) Please identify the decision that minimizes the expected cost. (ii) Please repeat (a) if it costs ALKARNAK \$10 per pint to discard the unused blood. (iii) Find the value of perfect Information....
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## This note was uploaded on 10/19/2011 for the course DS 412 taught by Professor Eng during the Spring '07 term at S.F. State.

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