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The owner of the Party City Toronto Company must decide among building a mega centre store, building 5 new stores, or leasing 10 of their
The owner of the Party City Toronto Company must decide among building a mega centre store, building 5 new stores, or leasing 10 of their locations to another company. The profit that will result from each alternative will be determined by whether material costs remain stable, increase moderately, or increase significantly. In the payoff table below the estimated profits/losses are given in $thousands. Material Costs Moderate Significant Stable Increase Increase Mega 1800 1010 -160 Centre Decision New Stores 1000 950 1150 Leasing 2200 600 -2450 Determine the best decision using the Maximin decision criterion. O Decision: Leasing based on -2450 = min(-160,950,-2450) O Decision: Mega Centre based on 160 = min(160,950,600) O Decision: New Stores based on 950 = max(-160,950,-2450) O Decision: Stable based on 1000 = max(1000,600,-2450)
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