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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
$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?
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