East West Distributing Is in the Process of Trying to Determine

question 44

Essay

East West Distributing is in the process of trying to determine where they should schedule next year's production of a popular line of kitchen utensils that they distribute.Manufacturers in four different countries have submitted bids to East West.However,a pending trade bill in Congress will greatly affect the cost to East West due to proposed tariffs,favorable trading status,etc.
After careful analysis,East West has determined the following cost breakdown for the four manufacturers (in $1,000's)based on whether or not the trade bill passes: $\begin{array}{c|cc}&\text{Bill Passes}&\text{Bill Fails}\\\hline\text { Country A } & 260 & 210 \\\text { Country B } & 320 & 160 \\\text { Country C } & 240 & 240 \\\text { Country D } & 275 & 210\end{array}$
a.If East West estimates that there is a 40% chance of the bill passing, which country should they choose for manufacturing?
b.Over what range of values for the "bill passing" will the solution in part (a) remain optimal?

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Definitions:

Cognitive-Behavioral

A form of psychotherapy that focuses on modifying dysfunctional emotions, behaviors, and thoughts by interrogating and uprooting negative or irrational beliefs.

Insight Therapies

Therapies in which the main goal is helping people gain insight with respect to their behavior, thoughts, and feelings.

Motives

Internal driving forces that compel individuals to act in a certain way or pursue particular goals.

Cognitive Therapy

Therapy in which the focus is on helping clients recognize distortions in their thinking and replacing distorted, unrealistic beliefs with more realistic, helpful thoughts.