Using the decision table for this problem, use the following criterion to choose the right order quantity:

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Using the decision table for this problem, use the following criterion to choose the right order quantity:

a. maximax

b. maximin

c. equally likely

d. minimax regret

e. Hurwicz using a = 0.8 Jim is the inventory manager at a Target store and needs to place an order for Christmas cards in October. He is considering order quantities of 200, 400, 600, and 800 boxes of cards. The following decision table shows the payoffs for demand levels of the same amounts during the Christmas season.
Demand Alternative 200 400 600 800 Order 200 boxes $3,800 $3,800 $3,800 $3,800 Order 400 boxes $1,200 $7,600 $7,600 $7,600 Order 600 boxes -$1,400 $5,000 $11,400 $11,400 Order 800 boxes -$4,000 $2,400 $8,800 $15,200.AppendixLO1

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Business Statistics

ISBN: 9780133852288

2nd Edition

Authors: Robert A Donnelly, Robert Donnelly Jr

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