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An operations manager's staff has compiled the information below for four manufacturing alternatives (A, B, C, and D) that vary by production technology and the
An operations manager's staff has compiled the information below for four manufacturing alternatives (A, B, C, and D) that vary by production technology and the capacity of the machinery. All choices enable the same level of total production and have the same lifetime. The four states of nature represent four levels of consumer acceptance of the firm's products. Values in the table are net present value of future profits in millions of dollars. If maximin were used, which alternative would be chosen? States of Nature Alternative A Alternative B Alternative 50 55 60 65 30 50 80 130 70 80 70 65 Alternative D -100 _10 150 220
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