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

Scintillation detector, what is scintillation detector what is scintillation detector

Water, Ask Hardness of bore well water is less than sea water - justify Ask Hardness of bore well water is less than sea water - justify

Hybrid ic, HYBRID IC: Hybrid IC's are formed by utilizing various combi... HYBRID IC: Hybrid IC's are formed by utilizing various combinations of monolithic, thin-film and thick film techniques and may in certain circumstances contain discrete semicon

Data communiction & networking., give the subject on data communiction & n... give the subject on data communiction & networking.

Market segmentation analysis for an organization, 1. Briefly explain how to... 1. Briefly explain how to conduct a market segmentation analysis for an organization. Answer: There are a number of ways by which the market segmentation analysis of an organizatio

Career help, hey, i am doing b.e in chemical engineering but by aggregate i... hey, i am doing b.e in chemical engineering but by aggregate is 55%. i would like to know what courses and preparation i have to do to get a good job. pls reply as soon as possible

Demand schedual, How do I create a demand schedual for 1 year? How do I create a demand schedual for 1 year?

Phase array modelling, QUESTION: Modelling of phase array antenna for medic... QUESTION: Modelling of phase array antenna for medical imaging. INSTRUCTION: The expert must provide a correct mathematical model solution and detail by detail steps of how it can

Blanking, Blanking involves cutting of the sheet metal along a closed outl... Blanking involves cutting of the sheet metal along a closed outline in a single step to separate the piece from the surrounding stock. As shown in figure, the path that is cut out

Assembly programme, program to work as xor gate program to work as xor gate