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Global Computer, a computer manufacturer with a global supply chain, is adding a new supplier for some of its component parts, and the suppliers it

Global Computer, a computer manufacturer with a global supply chain, is adding a new supplier for some of its component parts, and the suppliers its considering are in China, India, Thailand, and Vietnam. As a part of its risk management program, Global Computer wants to assess the possible impact of a supplier shutdown in the event of a natural disaster, such as a flood, fire, an earthquake. The following payoff table summarizes its profits (in millions of dollars) for supplier shutdowns given three different levels of event severity.
Supplier country Low severity Moderate severity High severity
China $32 $18-$8
India $30 $15-$6
Thailand $28 $20-$3
Vietnam $26 $15-$5
1) Find the best option by
a. Maximax payoff
b. Maximin payoff
c. Minimax regret
2) For more thorough planning, they hired a consultant, and the consultant forecasted the probability of moderate severity as 50%, and the probability of high severity as 30%. Which location should be the best option?

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