Question 5 question a plant manager is considering

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Question 5 . Question : A plant manager is considering buying additional stamping machines to accommodate increasing demand. The alternatives are to buy 1 machine, 2 machines, or 3 machines. The profits realized under each alternative are a function of whether their bid for a recent defense contract is accepted or not. The payoff table below illustrates the profits realized (in $000's) based on the different scenarios faced by the manager. Alternative Bid Accepted Bid Rejected Buy 1 machine $10 $5 Buy 2 machines $30 $4 Buy 3 machines $40 $2 Using the information above, which alternative should be chosen -933758074 MultipleChoice 16 True 0 -933758074 MultipleChoice 16
based on the minimax regret criterion?
Points Received: 0 of 3 Comments: Question 6 . Question : A bakery must decide how many pies to prepare for the upcoming weekend. The bakery has the option to make 50, 100, or 150 pies. Assume that demand for the pies can be 50, 100, or 150. Each pie costs $5 to make and sells for $7. Unsold pies are donated to a nearby charity center. Assume that there is no opportunity cost for lost sales. Using the information above, which alternative should be chosen based on the criterion of realism with alpha = 0.8? -933758073 MultipleChoice 21 False 0 -933758073 MultipleChoice 21
Points Received: 3 of 3 Comments: -933758072 MultipleChoice 28 True 0 -933758072 MultipleChoice 28

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