a. Construct a payoff table to display all possible Contribution outcomes if Belmullet Ltd. was to enter into a contract to supply Ballina Ltd. b. Determine what contract quantity Belmullet Ltd should agree to supply to Ballina Ltd using each of the following decision criteria.i. Expected Valueii. MaxiMiniii. MaxiMaxiv. Minimax Regret c. Calculate how much Belmullet Ltd. would be prepared to have access to perfect information about the state of demand in the market.

gamma has been producing a quality component for the automotive industry for many years. The component has a vaablejnsts of 16 per unit and currently sells at 28. The monthly demand for the component is uncertain and the probabilities for various demand levels is as follows Demand Prob ability 500 0.1 600 0.3 800 0.4 900 0.2 The company has been approached a customer who is prepared to enter into a contract whereby they commit to purchase a specied number of units on a monthly basis. The customer (Ballina Ltd) will sign a contract to buy either 400,600,800 or 900 units per month. Ballina Ltd is prepared to pay a maximum of 24 per unit irrespective of the size of the contact. We; Ltd. can vary its production capacity but it has a maximum capacity of 1,400 units per month. It cannot carry forward any unsold stock. Once Wd enters into the contact it must supply Ballina rst before selling components into the market