A payoff matrix has to be prepared with three alternative products Α1,Α2 and 3 Α . The respective cost costs of these products are $2, $2.50 and $4 per unit and their sale prices are $3, $4 and $5 per unit respectively. The normal production capacity of the plant for production of each of the products 1 2 Α ,Α and 3 Α is 3,000, 2,000 and 1,000 units respectively. i. Showing all the working clearly, prepare the payoff table if the states of demand are high ( ) 1 S , moderate ( ) 2 S and low ( ) 3 S with respective demand levels of 3,000, 2,000 and 1, 000 units. The stocks unsold will be worth half the cost price for the next period.
A payoff matrix has to be prepared with three alternative products Α1,Α2 and 3 Α . The respective cost costs of these products are $2, $2.50 and $4 per unit and their sale prices are $3, $4 and $5 per unit respectively. The normal production capacity of the plant for production of each of the products 1 2 Α ,Α and 3 Α is 3,000, 2,000 and 1,000 units respectively. i. Showing all the working clearly, prepare the payoff table if the states of demand are high ( ) 1 S , moderate ( ) 2 S and low ( ) 3 S with respective demand levels of 3,000, 2,000 and 1, 000 units. The stocks unsold will be worth half the cost price for the next period.
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter6: Optimization Models With Integer Variables
Section: Chapter Questions
Problem 56P
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Question
A payoff matrix has to be prepared with three alternative products Α1,Α2 and 3 Α . The
respective cost costs of these products are $2, $2.50 and $4 per unit and their sale prices
are $3, $4 and $5 per unit respectively. The normal production capacity of the plant for
production of each of the products 1 2 Α ,Α and 3 Α is 3,000, 2,000 and 1,000 units
respectively.
i. Showing all the working clearly, prepare the payoff table if the states of demand
are high ( ) 1 S , moderate ( ) 2 S and low ( ) 3 S with respective demand levels of 3,000,
2,000 and 1, 000 units. The stocks unsold will be worth half the cost price for the
next period.
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