PortShanghaiMumbaiManilaSantosVeracruzLogistics CostsSame$3.9Decrease$2.72.11.73.54.13.84.34.55.1Increase$6.36.56.15.75.4 35. Suntrek, a global apparel company, is adding a new supplierfor denim fabric that it uses to manufacture denim jeans, and thesuppliers it's considering are located near the ports of Shanghai,Mumbai, Manila, Santos, and Veracruz. A major factor in thecompany's decision is transportation and shipping costs, whichare dependent on several factors including port traffic, containercosts, and future oil prices. The following payoff tablesummarizes the total monthly shipping costs (in $100,000s) forthe suppliers in each of the ports, given the future state of relatedlogistics costs.Logistics CostsPortDecreaseSame IncreaseShanghai$2.7$3.9$6.3Mumbai2.13.86.5Manila1.74.36.1Santos3.54.55.7Veracruz4.15.15.4Determine the best decision using each of the following criteria.a. Miniminb. Minimaxc. Equal likelihoodd. Minimax regret

Mathematic models of decision-making help businesses take the correct decision for their operational…

Answered: a. Minimin b. Minimax C. Equal…

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter2: Introduction To Spreadsheet Modeling

Section: Chapter Questions

Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...

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Lorraine has received a lump sum of R500 000.00 from her retirement fund. She intends to usethese funds to start a student accommodation business. In order to start this business, Lorrainewould need approximately R1 million, funds are needed for building the students accommodationapartments and to register with various regulatory bodies. She has to source additional funding inorder to realise this dream. In the business plan, Lorraine has outlined the following:• Accommodation will be offered ONLY to students in Cape Town, Johannesburg,Mpumalanga and Polokwane.• ONLY females will be approved to reside in these houses, between the age of 18 - 35.• Marketing of the business will be done on community Radio stations only at the fourmentioned cities.• It is going to be a family business, Friends and relatives are in support of the idea but arenot able to support the business financially There are three types of Market coverage. Explain the type of market coverageapplicable to Lorraine’s…
FloorsRUs is considering new locations for its manufacturing plants. Costs for constructing a new facility in Huntsville are $1,100,000 and the company estimates that for every product from its new line, there would be an additional cost of $3. If the company were to locate in Hays, the new facility would cost $1,800,000 and each product would incur a $2 incremental cost. The company plans to sell the products to retailers for $7. At what volume is the point of indifference? At what forecasted volumes should FloorsRUs select Huntsville as their new manufacturing location and what volumes should the company select Hays and why?
Janice Gould of Krebs Consulting is in the process of makinga recommendation to a client regarding the corporate-widepurchase of an analytical software platform. She has madethe following estimates on management’s most importantperformance criteria and has rated three Software packagesacross these criteria a. Which software platform would you recommend?b. Assume that the client changes their mind and nowargues that the maintenance and support criterion isalready accounted for by the total cost criterion. Further,the client asks Ms. Gould to drop maintenance and support and add its factor weight to total cost. Will this clientrequest alter the recommendation?
Suppose a payoff table for player 1 in a two person zero sum game is a follows where both the players have three strategy: Player-2 Player-1 1 2 3 1 1 -3 4 2 7 5 -1 3 5 4 -3 Find the optimal strategy for player 1 using graphical procedure. Also find the value of that game. Is it a fair game? Justify your answe.
to celebrate the end of high school and the beginning of college, frankie is planning to spend three months backpacking through europe. frankie wants to see a lot of sites and do a lot of things, but he doesn't have much cash to spend. Given his financial situation, what type of lodging property would you recommended to Frankie for his trip? a. sleeping room or hostel b. destination resort c. timeshare resort d. extended stay hotel
A company has three existing warehouses to which it will ship furniture from a new factory whose location must be decided. The factory will receive raw materials from its wood supplier and fabric supplier. The annual number of shipments, shipment costs and the location of the suppliers and warehouses are shown below Existing facilities Annual L to or from fact cost Coordinate location Wood supplier 120 10 (100, 400) Fabric supplier 200 10 (800,700) Ware h 1 61 10 (300, 600) Ware h 2 40 10 (200, 100) Ware h 3 70 10 (600, 200) Using the median load answer the following questions –Where the factory should be located to minimize annual transportation cost –What will be the minimum annual transportation cost
Variable cells Cell Name Final Value Reduced Cost Objective Coefficient Allowable Increase Allowable Decrease $B$6 Activity 1 3 0 30 23 17 $C$6 Activity 2 6 0 40 50 10 $D$6 Activity 3 0 –7 20 7 1E+30 Constraints Cell Name Final Value Shadow Price Constraint R.H. Side Allowable Increase Allowable Decrease $E$2 Resource A 20 7.78 20 10 12.5 $E$3 Resource B 30 6 30 50 10 $E$4 Resource C 18 0 40 1E+30 22 What is the optimal objective function value for this problem?
When a country has a comparative advantage in the production of a good, it means that it can produce this good at a lower opportunity cost than its trading partner. Then the country will specialize in the production of this good and trade it for other goods. The following graphs show the production possibilities frontiers (PPFs) for Freedonia and Desonia. Both countries produce lemons and tea, each initially (i.e., before specialization and trade) producing 24 million pounds of lemons and 12 million pounds of tea, as indicated by the grey stars marked with the letter A. Freedonia has a comparative advantage in the production of ________ , while Desonia has a comparative advantage in the production of _______ . Suppose that Freedonia and Desonia specialize in the production of the goods in which each has a comparative advantage. After specialization, the two countries can produce a total of______ million pounds of tea and__________ million pounds of lemons. Suppose that…
J 2 An electronics store wants to identify a location for a warehouse that will ship to five retail stores. The coordinates and annual number of truckloads are given in the accompanying table. Develop a model to find the best location, assuming that straight-line distances can be used between the locations. Experiment with the model by testing each of the possible best solutions, included, to find the best location. Click here to view the data for the store locations and annual numbers of truckloads. Click here to view some possible best solutions. The best location is at____. (Type an ordered pair. Round each coordinate to the nearest integer as needed.)
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PetSmart and PetCo are two major competitors offering pet supplies and pet food. Given the location decisions of PetSmart and PetCo in this city, you conclude that: a. PetSmart focuses on raising its quantity sold rather than raising its profit margin on each unit. b. PetSmart and Petco engage in intense price undercutting. c. PetSmart and PetCo differentiate themselves by location. d. PetCo chose its location primarily using demand side considerations.
Given is a decision payoff table. Future Demand Alternatives Low Moderate High Small Facility 52 42 43 Medium Facility 50 49 49 Large Facility -15 38 51 a) The best decision under uncertainty using MAXIMAX is to select ( ) facility b) The best decision under uncertainty using MAXIMIN is to select ( ) facility c) The best decision under uncertainty using LAPLACE/EQUALITY LIKELY is to select ( ) facility d) If the probabilities for Future Demand when it is Low = 0.35, Moderate = 0.30, and High = 0.35, the expected monetary value (EMV) for the large facility = .e) If the probabilities for Future Demand when it is Low = 0.35, Moderate = 0.30, and High = 0.35, the best decision under risk is to select ( ) facility.

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a. Minimin b. Minimax C. Equal likelihood