Find the minimax regret decision

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Reference no: EM132853418

Question - XPRO Manufacturing is considering the introduction of a family of new products. John Avalon, the VP of Operations considering three different production processes (batch manufacturing, custom manufacturing, and group technology. The demand and profit depends on the state of economy as provided in table below.

Production Process

Poor Economy

Fair Economy

Good Economy

Excellent Economy

Batch

-$20.0 million

$50m

$125m

$150m

Custom

$10m

$20m

$50m

$80m

Group Technology

-$100m

-$70m

$30m

$200m

Probability

0.10

0.40

0.30

0.20

Required -

a- Find the Maximax, Maximin, Equally likely, and Hurwicz Decisions. Must show all work and calculations in tabular Excel format.

b- Find the Minimax regret decision. Use Tabular Excel format.

c- Based on above analysis, what is your recommendations to John Avalon?

Reference no: EM132853418

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