Trey Leeman,Operations Manager at National Consumers,Inc

question 65

Multiple Choice

Trey Leeman,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 maximin criterion,the appropriate alternative would be: _____________.

• A) Lease New Equipment
• B) Purchase New Equipment
• C) Add Third Shift
• D) Do Nothing
• E) Do everything

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Definitions:

Maintenance

The process of preserving a condition or situation or the work necessary to keep something functioning or in service.

Accessory Equipment

Additional or supplemental devices or tools used to enhance or support the main functionality of a primary product or system.

Business Products

Goods and services that are sold to other businesses for further production, resale, or use in operations.

Copiers

Machines used to make copies of documents and images.