Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

This is a operations research question. Please take your time when answering the questions no rush and explain the answer so I can better understand

image text in transcribed

This is a operations research question. Please take your time when answering the questions no rush and explain the answer so I can better understand The notes are stored on Google Drive and Dropbox Link 1 https://drive.google.com/file/d/1GcwxrsRrlRYcMfG4CQ2CkzDqJvmb_n3W/view?usp=drivesdkLink 2https://www.dropbox.com/s/seh9tvkjtudj1a9/Question%203%202018%20update%20.pdf?dl=0Link 3https://toffeeshare.com/c/ZehaidLCSQ

image text in transcribed
Question 3 A. The owner of Winifred Restaurant is considering three options for a facility next year. She can expand her current shop, move to a larger facility or make no change. Her decision will be guided by the information below: Winifred Restaurant Payoff Table Payoffs are Profits States of Nature (Market) Decision Favourable Average Unfavourable Alternatives Expand $56 000 $21 000 - $29 000 Move $70 000 $35 000 - $45 000 No Change $30 000 $10 000 $ 5 000 i. Which option would be best if she uses the LaPlace criterion? ii. If a maximax approach is used, what alternative should be adopted? iii. If the probability of a favourable market is 25%, that of an average market, 45%, and of an unfavourable market, 30%, and EMV is used, what should be her option? What is that optimal expected value? iv. What is the most that the owner would be willing to pay for additional information? Use Minimum Expected Regret (Minimum EOL). v. Use the alternative method to verify EVPI. B. The annual demand for an item is 12 000 units. Ordering cost is $80 per order and carrying cost is 20% of the unit cost of $15. Calculate: i. The Economic order quantity ii. Annual ordering cost iii. Annual carrying cost iv. Total annual cost

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Concepts In Differential Geometry

Authors: K N P Singh

1st Edition

9353146399, 9789353146399

More Books

Students also viewed these Mathematics questions