An Operations Manager's Staff Has Compiled the Information Below for Four

question 44

Essay

An operations manager's staff has compiled the information below for four manufacturing alternatives (E,F,G,and H)that vary by production technology and the capacity of the machinery.All choices enable the same level of total production and have the same lifetime.The four states of nature represent four levels of consumer acceptance of the firm's products.Values in the table are net present value of future profits in millions of dollars.Forecasts indicate that there is a 0.1 probability of acceptance level 1,0.2 chance of acceptance level 2,0.4 chance of acceptance level 3,and 0.3 change of acceptance level 4.
Using the criterion of expected monetary value,which production alternative should be chosen?

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Definitions:

Environmental Justice

The fair treatment and meaningful involvement of all people regardless of race, color, national origin, or income with respect to the development, implementation, and enforcement of environmental laws, regulations, and policies.

Food Justice

The movement seeking equity in access to healthy, nutritious food for all individuals, regardless of socio-economic status.

Food Policy Councils

Collaborative networks that address food system issues and work toward more sustainable food policies at local, state, or national levels.

Tradeable Permit Plan

An environmental policy tool that allows companies or countries to buy and sell allowances for the emission of pollutants, encouraging reduction in emissions in a cost-effective manner.