Iron Butterfly, Inc. project manager for the LOGON project, Frank Wesley, is concerned about the development time for the robotic transporter. Although the subcontractor, Creative Robotics has promised a delivery time of 6 weeks, Frank knows that the actual delivery time will be a function of the number of other projects Creative Robotics is working on at the time. As incentive to speed up Creative Robotic ’ s delivery of the transporter, Frank has three options:

S1: Do nothing.

S2: Promise Creative Robotics a future contract with Iron Butterfly.

S3: Threaten to never contract with Creative Robotics again.

He estimates the impact of these actions on delivery time would be as follows:

What strategy should Frank adopt based upon uncertainty criteria? Use criteria similar to the maximax, maximin, minimax regret, and maximum expected payoff, except note that the criteria need to be adapted because here the goal is to minimize the payoff (time), which contrasts to the usual case of maximizing the payoff (profit).

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Payoffs: Strategy Slow Creative robotics workload Average Busy S1 S2 S3 433 4 6 3 4 3 6 6 918 7