Consider the Following to Answer the Question(s) Below

question 19

Multiple Choice

Consider the following to answer the question(s) below:
A farm owner who grows summer vegetables (e.g. tomatoes) must decide whether to employ additional pickers this season. If he does, he could hire either migrant workers or local teenagers who need summer employment. The migrant workers are more experienced, faster, but more expensive. Although the teenagers will work for less, they are not as experienced and tend to damage plants and produce. His profits, taking into account losses from unpicked perished or damaged produce, depend on whether there is a good or bad growing season. The payoffs are shown in the table below.
-If the farmer is risk averse, he would

• A) hire migrant workers.
• B) hire teenagers.
• C) not do any extra hiring.
• D) make the same decision as he would using the expected value approach.
• E) give up farming.

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Definitions:

Heuristics

Problem-solving methods or strategies that employ practical, experiential approaches rather than guaranteed, optimal solutions.

Layout Problems

Layout problems involve the arrangement of physical facilities, equipment, and workspaces to optimize processes and operations efficiency.

Product Layouts

The arrangement of machinery, equipment, and workstations in a production facility to optimize the workflow and manufacturing process.

Line Efficiency

Line efficiency refers to the ratio of the actual production output of a manufacturing line to its theoretical maximum capacity, indicating how well the production line is performing against its designed capabilities.