Explain what is the expected value with perfect information, Operation Management

Assignment Help:

ABC Company, a soft-drink vendor, has created a table of payoffs for three stocking decisions for three different states of nature:

States of nature (Demand)

Alternatives Heavy Medium Low

Large stock $2,060 $1,510 $1,200

Average stock $1,390 $1,430 $1,290

Small stock $1,560 $1,550 $1,890

Probabilities associated with the states of nature are 0.4 for heavy demand, 0.2 for medium demand, and 0.4 for low demand. What is the expected value with perfect information? Specify only the amount. e.g. 14000


Related Discussions:- Explain what is the expected value with perfect information

Normal time, a time study was made of a punch press operator. the average o...

a time study was made of a punch press operator. the average observed time after discounting non normal occurrence was 0.52 minutes per unit. the operator performance was judged to

Who all are stakeholders affected by the stores'' decisions, Neda operates ...

Neda operates a small convenience store in a southern town that has a high tourist draw. After several years of operating the store, Neda has decided to no longer sell tobacco prod

Explain what are the impacts of culture on motivation, What are the impacts...

What are the impacts of culture on motivation? Are all cultures motivated by the same thing? Is there a slant in the research? Is there a theory you believe would work across cultu

Explain objectives of job evaluation, Explain objectives of job evaluatio. ...

Explain objectives of job evaluatio. Objectives of job evaluation: a) Decides the relative values of various jobs in an organization.  b) Helps to formulate a suitable a

Explain after a risk workshop has been completed, After a risk workshop has...

After a risk workshop has been completed, risk interviews are often completed with subject matter experts. Assess the value of the interviews to identify risk response strategies.

Economic order quantity, The Warehouse Company supplies spare parts for its...

The Warehouse Company supplies spare parts for its two plants, Plant A and PlantB. Plant A and Plant B do not have any significant storage space. Hence you want carryminimum possib

Explain hr use of social media it is for a term paper, HR use of social med...

HR use of social media it is for a term paper and i am just collecting some data and ideas.

What are the chase demand strategies, What are the Chase demand strategies?...

What are the Chase demand strategies? Chase demand strategies: It is just the opposite of a level capacity strategy. The organisation frequently chases customer demand an

Compute the probability, The probability Mary will receive an A in a class ...

The probability Mary will receive an A in a class is 0.51. Assuming independence, if she is taking 5 classes this semester, calculate the probability she will receive exactly 3 A's

Explain a market-product grid is a framework to relate the, A market-produc...

A market-product grid is a framework to relate the _____ to products offered or potential marketing actions by an organization. estimated expenses for products sold total ant

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd