An Operations Manager's Staff Has Compiled the Information Below for Four

question 69

Essay

An operations manager's staff has compiled the information below for four manufacturing alternatives (A,B,C,and D)that vary by production technology and the capacity of the machinery.All choices enable the same level of total production and have the same lifetime.The four states of nature represent four levels of consumer acceptance of the firm's products.Values in the table are net present value of future profits in millions of dollars.

a.Assuming a maximax strategy,which alternative would be chosen?
b.If maximin were used,which would be chosen?
c.If the states of nature were equally likely,which alternative should be chosen?

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Definitions:

European Populations

Refers to the human demographic groups that reside in Europe, characterized by distinct historical, cultural, and genetic backgrounds.

Advent Of Agriculture

The period in human history, approximately 10,000 years ago, when humans began to cultivate crops and domesticate animals, leading to settled communities.

H. Naledi

A species of extinct hominin discovered in South Africa, known for its unique mixture of primitive and modern anatomical features.

South African Cave

A general reference to archaeological sites in South Africa where early human fossils and artifacts have been discovered.