Use This Information to Answer the Following Questions -Refer to the Information Above

question 47

Essay

Use this information to answer the following questions.
ABC Inc.must make a decision on its current capacity for next year.Estimated profits (in $000s)based on next year's demand are shown in the table below.
$$\begin{array}{l}\text { Next Year's Demand }\\\begin{array} { l l l } \text { Alternative } & \text { Low } & \text { High } \\\hline \text { Expand } & \$ 100 & \$ 200 \\\text { Subcontract } & \$ 50 & \$ 120 \\\text { Do Nothing } & \$ 40 & \$ 50\end{array}\end{array}$$
-Refer to the information above.
a.Which alternative should be chosen based on the maximax criterion?
b.Which alternative should be chosen based on the maximin criterion?
c.Which alternative should be chosen based on the Lapalce criterion?
d.Which alternative should be chosen based on criterion of realism with alpha = 0.7?
e.Which alternative should be chosen based on the minimax regret criterion?

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Definitions:

Collective Bargaining Process

Process of negotiating a collective agreement, including the use of economic pressures by both parties

Strikes

A collective work stoppage initiated by employees as a form of protest, usually in response to workplace grievances.

Boycotts

Organized campaigns where individuals or groups refuse to purchase, use, or deal with goods or services from a particular company, country, or organization, often for political or ethical reasons.

Agency Shops

A workplace arrangement where all workers must pay union dues, but membership in the union is not mandatory.