M & M Chemicals Inc is a supplier of chemicals and equipment for industrial processes. One of its products is the High Tech-7 (HT-7) for which they normally maintain inventories every week of 11, 12 or 13 boxes of 10 packs of 50 flue ounces. For each box sold you get a utility as indicated in the table below. Because the HT-7 is very unstable, it has a very short life and if a box has not been sold at the end of the week, it should be decommissioned. Since its cost is as indicated in that table, a loss of exactly that amount is incurred if there is a need to remove the box. The probability of selling 11 boxes is 0.45, for 12 boxes it is .35 and for 13 boxes it is .20.

Utility per box	Cost per box
$35	$56

1. Prepare a decision table.
2. Which course of action is the most recommended?
3. A product that stabilizes HT-7 is being developed and in that case there is no need to remove the excess product at the end of the week, How does the recommended course of action change?

Origin

Microsoft Translator