Question
XPRO Manufacturing is considering the introduction of a family of new products. John Avalon, the VP of Operations considering three different production processes (batch manufacturing,
XPRO Manufacturing is considering the introduction of a family of new products. John Avalon, the VP of Operations considering three different production processes (batch manufacturing, custom manufacturing, and group technology. The demand and profit depends on the state of economy as provided in table below.
| Production Process | Poor Economy | Fair Economy | Good Economy | Excellent Economy |
| Batch | -$25.0 million | $60m | $155m | $200m |
| Custom | $12m | $22m | $60m | $100m |
| Group Technology | -$100m | -$60m | $40m | $150m |
| Probability | 0.10 | 0.20 | 0.40 | 0.30 |
- Find the Maximax, Maximin, equally likely, and Expected value decisions with respective profits.Must show all work and calculations in tabular Excel format.
- Find the Minimax regret decision and profit. Use Tabular Excel format.
- Based on above analysis, what is your recommendations to John Avalon?
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Statistics For Business And Economics
Authors: James T. McClave, P. George Benson, Terry Sincich
13th Edition
134506596, 978-0134506593
