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Recently, The Flower Doctor has received news that the supplier of organic fertilizer, GetGrowing, may increase price. In this case, the cost of using organic
Recently, The Flower Doctor has received news that the supplier of organic fertilizer, GetGrowing, may increase price. In this case, the cost of using organic fertilizer will increase. The Flower Doctor can now choose one of three actions: (1) continue to produce flower fertilizer with the original mix, (2) use another mix based on the new price of organic fertilizer, and (3) source from another supplier. The cost of the action depends on whether or not GetGrowing will increase price. Table 1 lists the monthly cost in various scenarios. Below shows the monthly cost varies according to The Flower Doctor's action and GetGrowing's price. Original mix Price increase: $40K No price increase: $30K New mix Price increase: $36K No price increase: $32K Change supplier Price increase: $35K No price increase: $35K Let denote the probability that GetGrowing will increase price. Identify the best action that The Flower Doctor should take when 0.5
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