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

question 6

Essay

An operations manager's staff has compiled the information below for four manufacturing alternatives (A, B, C, and
D) 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.

(a) Assuming a maximax strategy, which alternative would be chosen?
(b) If maximin were used, which would be chosen?
(c) If the states of nature were equally likely, which alternative should be chosen?

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Definitions:

Basic Rights

Fundamental entitlements inherent to all human beings, without discrimination, including rights to life, liberty, and personal security.

Human Rights

The fundamental rights and freedoms that every person is entitled to, regardless of nationality, sex, ethnic origin, color, religion, language, or any other status.

Basic Rights

Fundamental rights that are considered to be inherent and inalienable to every individual, often encompassing freedom, equality, and justice.

Economic Justice

The aim to create opportunities for every individual to have a fair stance in economic activities, distribution of resources, and wealth.