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XYZ Company faces a typical make or buy decision . On one hand, XYZ couldproduce the BlenderforSmoothies itself. Cost estimates in this case are as
XYZ Company faces a typical make or buy decision On one hand, XYZ couldproduce the BlenderforSmoothies itself. Cost estimates in this case are as follows:Alternative: Make Blender for SmoothiesCost per Unit $Chance The company also could have the blendermade by a subcontractor. The subcontractor, however, faces similar uncertainties regarding the costs and has provided XYZ Companywith the following schedule of costs and chances:Alternative: Buy Blender for SmoothiesCost per Unit $Chance If XYZ Company wants to minimize its expected cost of production in this case should it make or buy? aDraw and solve the decision tree for the given problemto support your recommendation.bConstruct cumulative risk profiles for all possible strategies on one graph. Can you draw any conclusions regarding dominance? Explain.
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