Question
A boutique resort operator is planning to replace its chiller machine for its resort located in Genting Highland, Malaysia. The resort operations manager received proposals
A boutique resort operator is planning to replace its chiller machine for its resort located in Genting Highland, Malaysia. The resort operations manager received proposals for five different machines, each incurring differing operating cost depending on the occupancy rate of the hotel (three possible scenarios S1, S2 and S3). The operational cost per hour of the five machines for each scenario is presented in Table 2- 1. Table 2-1 Proposal Cost Per Hour S1: High Occupancy S2: Medium Occupancy S3: Low Occupancy Machine 1 100 80 90 Machine 2 90 82 94 Machine 3 80 70 108 Machine 4 120 50 96 Machine 5 90 80 90 (a) Determine which proposal should the operations manager choose according to MiniMax Regret Approach. Show your Opportunity Loss Table.
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