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Practical Management Science

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter7: Nonlinear Optimization Models

Section: Chapter Questions

Problem 79P

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Question

What is the final value of the decision tree?

Large manufacturing
Small manufacturing
Economics
Good (.6)
Economics
Poor (.4)
Economics
Good (.6)
Economics
Poor (.4)
Rent empty structure
Rent floor space
70,000
50,000
65,000
55,000
--5000
Rent empty structure
Rent floor space30,000

OA) 45,000
OB) 68,000
OC) 42,000
OD) 33,000
SOE) 75,000

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