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The owner of the Wynston Transport Company must decide among manufacturing 10 new transport trucks, manufacturing 20,000 new electric scooters, or leasing all their
The owner of the Wynston Transport Company must decide among manufacturing 10 new transport trucks, manufacturing 20,000 new electric scooters, or leasing all their manufacturing equipment 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 Transport 1800 350 -2500 cision Scooters 1910 820 -450 Leasing 600 1000 700 ermine the best decision using the Hurwicz criterion with a = 0.2. O Decision: Scooters based on 1438 = max(940,1438,920) O Decision: Transport based on -1640 = min(-1640,22,680) O Decision: Leasing based on 680 = max(-1640,22,680) O Decision: Stable based on 862 = max(862,480,-1860)
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