Flifla sells tomatoes every day in Suk al Marqazi, the downtown fruit and vegetable market. He finds that he can order tomatoes in crates of 25 kg and he is able to stock a maximum of four crates or 100 kg of tomatoes. His experience taught him that the daily demand ranges from 0 to100 kg of tomatoes. Flifla sells tomatoes at 1 dirham/kg. His cost is Dhs 0.70 per kg. Therefore, his profit is Dhs 0.30 per kg of tomatoes sold. For any unsold tomatoes, Flifla can sell them for Dhs 0.50 to a recycling firm that produces tomato paste. Flifla’s objective is to determine the quantity of tomatoes to buy each day to maximize his profits. Answer the following questions.
• Construct a conditional payoff table.
• What is the best decision according to the following criteria?
• Optimistic criterion
• Pessimistic criterion
• Equally likely
• Construct an opportunity loss table.
• What is the Minimax regret?
• Assume the following probability distribution:
Demand: 0 kg, 25 kg, 50 kg, 75 kg, 100 kg.
Probability: 0.05,0.10,0.30,0.35,0.20
What is the best decision according to the Expected Monetary Value?
• What is the best decision according to the Expected Opportunity Loss?
• What is the Expected Value of Perfect Information?

Posted Date: 6/4/2012 3:30:33 PM | Location : United States

Ask an Expert

Related Discussions:- case1, Assignment Help, Ask Question on case1, Get Answer, Expert's Help, case1 Discussions

Write discussion on case1
Your posts are moderated

Write your message here..

Related Questions

Accurate design of heat transfer systems, Hollow cylinders are useful build... Hollow cylinders are useful building structures commonly used for both industrial and domestic purposes. Tanks, cars and some transport machineries are all applications of inner-in

Barometric lag, My question is that i am working in a petrochemical plant w... My question is that i am working in a petrochemical plant where in final stage disc ring reactor the barometric lag is chocked completely the system is under vacuum if i introduce

Changes in temperature and pressure-aircraft maintenance, Changes in temper... Changes in temperature and pressure: The changes in temperature and pressure of the gases through a gas turbine engine are illustrated in Figure 1.5 The efficiency with which t

Uihuihuiui, jihjihjihjihuih jihjihjihjihuih

Engine fuel control systems - aircraft engine, Engine fuel control systems:... Engine fuel control systems: The thrust of a turbo jet is controlled by varying the amount of fuel that is burnt in the combustion system and in order to operate the safe tempe

False alarms & cm , False Alarms & CM  The mis-association of false ... False Alarms & CM  The mis-association of false alarms with target tracks has two main e!ects.  - It tends to increase the actual tracking errors in the system because

Random number Generation, how to generate random numbers in rectangular reg... how to generate random numbers in rectangular region?

Resection, method of solving resection method of solving resection

Industrial engineering, what is QCM? what is QCM?

Limitations of the powder metallurgy process, Q. What are the limitations o... Q. What are the limitations of the powder metallurgy process ? How are some of these overcome ? Ans. Limitations : 1. Dies and equipment costs are high. So, the process