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F.J. Brewerton Retailers Inc., must decide whether to build a small or a large facility at a new location in south Texas. Demand at the location will either be low or high, with probabilities 0.1 and 0.6, respectively. If Brewerton builds a small facility and demand proves to be high, he than has the option of expanding the facility. ha small facility is built and demand proves to be big% and then the retailer expands the facility, the payoff is $270,000. If a small facility is built and demand proves to be high, but Brewerton then decides not to expand the facility, the payoff is $223,000. If a small facility is built and demand proves to be low, then there is no option to expand and the payoff is $200 000 If a large facility is built and demand proves to be low, Brewerton then has the option of stimulating demand through local advertising. If he does not exercise this option, then the payoff is $40,000. If he does exercise the advertising option, then the response to advertising will either be modest or sizable, with probabilities of 0.3 undo.?, respectively. If the response is modest, the payoff is $20,000. If it is sizable, the payoff is $220,000. Finally, if a large facility is built and demand proves to be high, then no advertising is needed and the payoff is $800,000.a) What should Brewerton do to maximize his expected payoff?b) What is the value of this expected payoff?
The CP policy is the formal policy that will guide the efforts of the subordinate teams in developing their plans, and the overall operations of the organization during contingency operations.
Which of the international operations strategies involves low cost reductions and low local responsiveness?
Solutions provides a computer-based document processing service
Determine the average amount of time that a guest spends checking in. How would this change under each of the stated options? Which option would you recommend?
nbsp1.briefly trace the development and growth of walmart from 1969 to the present through the application of corporate
The hunt is on: Rich's 13 year old daughter Alexandra is going to give him an introductory trombone concert later in the day, and he wants to purchase earplugs before then.
Discuss the principal reasons why project management has become such a popular business tool in recent years.
500 words with 2 references words that respond to the following questions with your thoughts ideas and comments. this
what are the main issues with executive pay and how do you think these practices need to be changed?
Finally, they looked this value up in the Normal Table (or computed it utilizing Excel). The number returned was: 0.0489. Specified this returned value, Illustrate what is the percent chance that the project will take longer than the assigned due ..
How do formal workplaces differ from informal workplaces?
what course of action would you take to minimize the liability during the new product development cycle.
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