Answered step by step
Verified Expert Solution
Link Copied!

Question

00
1 Approved Answer

A factory can produce three models of their product: A, B, and C. The raw materials used to produce each model are bought from

image text in transcribed

A factory can produce three models of their product: A, B, and C. The raw materials used to produce each model are bought from three suppliers: X, Y, Z. The decision is made according to different factors including the availability of all raw materials on the supplier side, the total cost, the delivery time, etc. The table below shows the cost (in thousands) to produce each of the three models next month. Suppose you are asked to answer the question: which model should be produced to eliminate the cost for the next month. Answer the following questions based on the data provided in the table: Y N A 5 3 B 10 80 4 5 2 4 1 1) 2) Determine the decision variable (s) and the output variable? Suppose the decision will be made under uncertainty and that the pessimistic approach will be used, which model would you choose? Justify your answer. 3) Suppose the decision will be made under risk and that the probability of providing the raw materials is 30% from X, 60% from Y, and 10% from Z, which model would be the best. Justify your answer.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Statistics For Business And Economics

Authors: James T. McClave, P. George Benson, Terry T Sincich

12th Edition

9780321826237

Students also viewed these General Management questions

Question

Become familiar with indexes for relational databases.

Answered: 1 week ago

Question

CLT HW Score: 0/19 0/19 answered Question 4 Answered: 1 week ago

Answered: 1 week ago