Operations Management: Sustainability And Supply Chain Management Custom Edition For Temple University, Version 3
11th Edition
ISBN: 9781269383578
Author: HEIZER
Publisher: PEARSON
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Chapter A, Problem 5DQ
Summary Introduction
To define: The decision tree
Introduction: Decision-making is the process that helps to make decision. It is the process of choosing the best alternative by evaluating many alternatives.
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QUESTION TWO
A property development company is planning to build a block of student apartments in Lusaka’s Mass Media area. The company is yet to decide what size of block to build: a small, medium, or large. The payoffs of each size will depend on the demand for student accommodation in the area, which could be low, medium, high. The Developer estimates a 25%, 35%, and 40% chance of low, medium, and high demand, respectively.
Below is a payoffs matrix (in K’000) showing the annual payoffs for the decision problem.
Size of Block
Market Demand
Low
Medium
High
Small
400
400
400
Medium
200
500
500
Large
-400
300
800
Required:
Identify the decision alternatives and uncertain conditions surrounding them?
What is the optimal decision if the Developer is conservative?
What is the optimal decision if the Developer is a risk taker?
What is the optimal decision if the Developer wishes to minimize the Expected Opportunity Loss on the decision to…
Question 3
Make a decimal outline of any of these topics (choose one only): (a) Impact of CORONA-19 Pandemic on Teaching and Learning, (b) Impact of CORONA-19 Pandemic on Employment, and (c) Impact of CORONA-19 Pandemic on Business.
Question 4An investor is to purchase one of three types of real estate, as illustrated in Figure below. Theinvestor must decide among an apartment building, an office building, and a warehouse. Thefuture states of nature that will determine how much profit the investor will make are goodeconomic conditions and poor economic conditions. The profits that will result from eachdecision in the event of each state of nature are shown in Table below:
a) Find the optimal act using Maxi-Max criteriab) Find the optimal act using Mini-Max criteria c) Find the optimal act using Maxi-Min criteria
d) Find the optimal act using Min-Max regret table
Chapter A Solutions
Operations Management: Sustainability And Supply Chain Management Custom Edition For Temple University, Version 3
Ch. A - Prob. 1DQCh. A - Prob. 2DQCh. A - Prob. 3DQCh. A - Prob. 4DQCh. A - Prob. 5DQCh. A - Question: 6. Explain how decision trees might be...Ch. A - Prob. 7DQCh. A - Prob. 8DQCh. A - Question 9. Identify the five steps in analyzing a...Ch. A - Prob. 10DQ
Ch. A - Question 11. The expected value criterion is...Ch. A - Question 12. When are decision trees most useful?Ch. A - Given the following conditional value table,...Ch. A - Prob. 2PCh. A - Prob. 3PCh. A - Jeffrey Helm owns a health and fitness center...Ch. A - Prob. 5PCh. A - Prob. 6PCh. A - Prob. 7PCh. A - Prob. 8PCh. A - Prob. 9PCh. A - Prob. 10PCh. A - The University of Miami bookstore stocks textbooks...Ch. A - Palmer Jam Company is a small manufacturer of...Ch. A - Prob. 13PCh. A - Prob. 14PCh. A - Prob. 15PCh. A - Prob. 16PCh. A - Prob. 17PCh. A - Prob. 18PCh. A - Prob. 19PCh. A - Philip Musa can build either a large video rental...Ch. A - Prob. 21PCh. A - Prob. 22PCh. A - Prob. 23PCh. A - Question A.24 On the opening page of Module A and...Ch. A - Question Warehouse Tenting at the Port of Miami...Ch. A - Question Warehouse Tenting at the Port of Miami...Ch. A - Question Warehouse Tenting at the Port of Miami...
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