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Farm Grown, Inc., produces cases of perishable food products. Each case contains an assortment of vegetables and other farm products. Each case costs P7 to

Farm Grown, Inc., produces cases of perishable food products. Each case contains an assortment of vegetables and other farm products. Each case costs P7 to produce and sells for P15. If there are any cases not sold by the end of the day, they are sold to a large food processing company for P3 a case. If its own supply of cases is less than the demand, it buys the necessary vegetables from a competitor. The estimated cost of doing this is P11 per case. The probability that daily demand will be 100 cases is 0.3, the probability that daily demand will be 200 cases is 0.4, and the probability that daily demand will be 300 cases is 0.2 and the probability that daily demand will be 400 cases is 0.1.

Complete the table below:

Pay off table

Demand

100

200

300

400

Order size

100

Answer

Answer

Answer

Answer

200

Answer

Answer

Answer

Answer

300

Answer

Answer

Answer

Answer

400

Answer

Answer

Answer

Answer

Probabilities

0.3

0.4

0.2

0.1

Expected value of CM

Demand

100

200

300

400

Order size

100

Answer

Answer

Answer

Answer

Answer

200

Answer

Answer

Answer

Answer

Answer

300

Answer

Answer

Answer

Answer

Answer

400

Answer

Answer

Answer

Answer

Answer

Expected value of perfect information CM

CM

Probability

Total

100

Answer

0.3

Answer

200

Answer

0.4

Answer

300

Answer

0.2

Answer

400

Answer

0.1

Answer

Expected CM given perfect information

Answer

EV of CM on best course of action

Answer

EVPI

Answer

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