I am the current owner of Street Taco which is food truck business offering authentic street style tacos. I pay out about $100 every day to purchase fresh local ingredient and I also have 1 other employee working with me. I want to expand but my concern would be the cost of a new truck and paying out more employees. The advantage would be reaching customers in other segments along with expanding my brand and product.

Three alternatives would be:

1. Opening 3 more trucks
2. Opening 2 more truck
3. Not expanding

Three state of nature would be:

1. There would be a large increase in demand for tacos
2. There would be a moderate increase in demand for tacos
3. There would be no increase in demand for tacos

On a busy day I make $300

On a moderate day I make $150

On a slow day I make $50

Would you agree/disagree with the decision strategy above? Are there any factors that have been overlooked that would affect his or her decision process? Would you choose the same two decision strategies under uncertainty?

Maximax Decision Process

Busy Day

Moderate Day

Slow Day

Alternative value

3 Trucks

Hurwicz Criteria Decision Process

a=

0.75

Busy Day

Moderate Day

Slow Day

Alternative value