Use the Following to Answer the Questions Below

question 67

Multiple Choice

Use the following to answer the questions below.
A company that is introducing a new product has to choose between three different manufacturing methods,referred to as methods A,B,and C.Depending on the demand for the product,they have forecast different levels of revenue for the year (values are in thousands) .The company has identified three possible states of nature for economic growth,and named them High,Medium,and Low.
Table A.2
-Using the information in Table A.2,which alternative is best in accordance with a decision criterion of maximin?

• A)A
• B)B
• C)C

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Definitions:

Outsourcing

The act of hiring third-party vendors to perform services or create goods that traditionally were performed in-house, as a strategy to focus on core business activities.

Rightsizing

The process of adjusting a company's workforce to its optimal size, often involving layoffs or restructuring.

Systematic Change

A long-term strategy that changes the organization's culture and attitudes, and employees' values, with the goals of reducing costs and enhancing quality.

Time Horizon

The length of time over which an investment, project, or strategic decision is expected to unfold or achieve certain goals.