Question
The company A has acquired a textile company and wants to make a decision regarding the future of one of its main facilities located in
The company A has acquired a textile company and wants to make a decision regarding the future of one of its main facilities located in Antalya. There are three alternative decisions that can be made. First, the decision can be made to expand the facility. Second, the current state can be maintained. Third, the factory can be sold. The table below shows how the structure varies depending on the state of the economy.
In case of a strong economy | In case of a decline in the economy | |
expand | 800,000 $ | $ 500,000 |
Maintain the current state | 1,300,000 | -150,000 |
Sell now | 320,000 | 320,000 |
Accordingly, determine the best decision using the decision criteria below and explain each decision criterion:
Maximax
Maximin
Minimax regret
Hurwicz
Equal probability
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