Informatics Corporation summarises international information reports (on a weekly basis), prints sophisticated data and forecasts, which are
Question:
Informatics Corporation summarises international information reports (on a weekly basis), prints sophisticated data and forecasts, which are purchased weekly by mutual funds, banks and insurance companies. This information is very expensive and the demand for the reports is limited to a maximum of 30 units. The possible demands are 0, 10, 20 and 30 reports per week. The profit per report sold is Rs 30 and the loss per report unsold is Rs 20. No production of extra reports during a week is possible. Further, there is a penalty cost of Rs 250 for not meeting the demand. Unsold reports cannot be carried on to the next week.
Using the pay-off table, find out the number of reports to be produced if:
(i) Maximin or pessimistic strategy is adopted.
(ii) Maximax or optimistic strategy is used.
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