Trey Whitmore, Operations Manager at National Consumers, Inc

question 21

Multiple Choice

Trey Whitmore, Operations Manager at National Consumers, Inc.(NCI) , is evaluating alternatives for increasing capacity at NCI's Fountain Hill plant.He has identified four alternatives, and has constructed the following payoff table which shows payoffs (in $1,000,000's) for the three possible levels of market demand: If Trey uses the maximax criterion, the appropriate alternative would be: ___.

• A)lease new equipment
• B)purchase new equipment
• C)add third shift
• D)do nothing
• E)do everything

---

Definitions:

Compensation

The total amount of the monetary and non-monetary pay provided to an employee in exchange for work performed.

Reward System

A reward system is a structured plan to provide benefits, both monetary and non-monetary, to employees for their work achievements and performance.

Performance Bonuses

Additional financial rewards given to employees for achieving specific performance targets or exceptional work contributions.

Rewards Provided

The various forms of benefits, compensation, and recognition given to employees in acknowledgment of their work performance and contributions.