Q3) An electronics company specialised in manufacturing modern electronic components; it also builds the equipment that produces
Question:
Q3) An electronics company specialised in manufacturing modern electronic components; it also builds the equipment that produces the components. The manager who is responsible for advising the president of the company on electronic manufacturing equipment has proposed four alternative facilities; Large, medium-sized, small and no facility. He predicts three states of the market; strong, stable and weak. The manager calculates the profit in ($) for each alternative at each state of nature as follows: The large facility will gain $550,000 in a strong market, $310,000 in a stable market is and in a weak market, $110,000. The medium-sized facility will gain $300,000 in a strong market, $129,000 in a stable market and $100,000 in a weak market. The small facility will gain $200,000 in a strong market, $110,000 in a stable market and $32,000 in a weak market. No facility gains zero profit in all the state of the market. You are required to put the above information in a payoff table. (5 marks)
Quantitative Analysis for Management
ISBN: 978-0132149112
11th Edition
Authors: Barry render, Ralph m. stair, Michael e. Hanna