Question
a. Use the Maximax, Maximin, and Equally Likely criterion to determine the best alternative? b. Calculate the EMV for each decision alternative? b. Which action
a. Use the Maximax, Maximin, and Equally Likely criterion to determine the best alternative?
b. Calculate the EMV for each decision alternative?
b. Which action should be selected?
c. What is the expected value with perfect information?
d. What is the expected value of perfect information?
Light Demand | Moderate Demand | Heavy Demand | |
Probability | 0.25 | 0.45 | 0.3 |
Wind-up action | $325,000 | $190,000 | $170,000 |
Pneumatic action | $300,000 | $420,000 | $400,000 |
Electrical action | -$400,000 | $240,000 | $800,000 |
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Operations Management Sustainability And Supply Chain Management
Authors: Jay Heizer, Barry Render, Chuck Munson
13th Edition
0135173620, 978-0135173626
