You are on page 1of 3
i S.6.0r7 cuser, Y soLution | The decison eee shown in Figure A | 1 t Problems* “eantet ‘ide the toting conional yl ble, deerine 2 Mtv 1) Masimin i © gull ihely Phe i ‘States of Navare Alternatives __“Market___Market “Market Build new plant $350,000” $340,000 $300,000 ‘Subcontract ‘$180,009 880,000 =s 20,00 Overtime $110,000 $60,000 -$ 10,000 Do nothing. Se eee + .2 Even though independent gusoine stations have been Wig sc, eso ie em ten Ing te oWn independent gesoline station, Susan's problem is to ») Compnte the expected value of pertect information EVP provides Clay Wayback het ed Raymond Jacobs «wns «health and fines en Muscle-Up, in Ashland, He is considering adding more Cee gat to met increasing demi. He wall either add no flor su! ‘moderne area of floor space (M), a lange area of lar sac tn area of floor space that doubles the size of the fay Demand wil either sty fixed, increase slighty. o ines et The following are the changes in Muscle-U's annul prion ‘cach combination of expansion level and demand change lee ‘Expansion Level M L uy § go, Sian -Sio;00 S008 $2,000 $8,000 § 6.00) $4 $3,000 __ $9,000 _s2no00 $00 i i \ | | | 1 \ ‘The probailiesascoised withthe sites of rate ae ne | y ce itr Wee and wi eft a hss eae 2 shuld he don Bag AS. Mowe Wie, tn apr seeming tev et TF WEisn as aso yo EH o Fo fllow with» compe ot te peas ante 000 Was air ee OAS. Wen cs ATR * sembly tn an ate ‘ess ill expects $10,000 prea ATR tc nat! Be i poi of bom I a ga a sressepets ows of Stenayg, NE Hr ne eet he EMV 6 cach dish, 1) compute the expected vac of pee ‘Ae Deborah Wawwn’s facts cai EF MEINE a ape a ee pmeaches are increasing cepacia rane SF fooreequinmcet. Demand wilt nese imfaty (MD, OF steal) (Ch. The pee Sh possible scenario are wollen oercr—_e—e—_ ——— Pemand Seenarie Pe % comideting thee Ml These same en

You might also like