User Account

All Pages

Ethiopian economic-chance for aggregate market

Assignment Help Operation Management
Reference no: EM133506680

Question

DALOL Mountain Bicycle Shop is considering three options for its facility next year. Owner of the shop can expand his current shop, move to a larger facility, or make no change. With a good market, the annual payoff would be $76,000 if he expands, $90,000 if he moves, and $40000 if he does nothing. With an average market, his payoffs will be $30,000 $41,000 and $15,000, respectively. With a poor market, his payoff will be -$17,000, -$28,000, and $4,000, respectively

a. Which option should the shop owner choose if he uses the maximax criterion?

b. Which option should the shop owner if he uses the maximin criterion?

c. Which option should the shop owner choose if he uses the equally likely criterion?

d. Which option should the shop owner choose if he uses the criterion of realism with α=0.4?

e. Which option should the shop owner choose if he uses the minimax regret criterion?

f. Ethiopian Economic commission has estimated that next year the chance for aggregate market to be good is 60%. Based this, which option(s) do you recommend based on Expected monetary value and minimax regret criterion? How much should the shop owner pay for additional information?

Reference no: EM133506680

Questions Cloud

What qualitative issues might affect your final decision : Identify any costs or issues that are not part of your analysis that might affect your decision. What is your recommendation regarding what FlexCon should do
How can nutritional information on yogurt vary : How can nutritional information on yogurt vary? What does this tell you about the laws surrounding nutritional labeling?
What the impact on a firm decision to raise capital : explain how this occurs and what the impact on a firm's decision to raise capital by equity, as opposed to debt.
Discuss the role of suppliers in ensuring that the companies : Discuss the role of suppliers in ensuring that the companies from which their products are sourced provide safe working conditions for their employees.
Ethiopian economic-chance for aggregate market : Ethiopian Economic commission has estimated that next year the chance for aggregate market to be good is 60%.
Evaluate how tourism and hospitality organisations : evaluate how tourism and hospitality organisations can implement models of cross-cultural human resource management. Review the emergence of international
Different types of communication-models and theories : Identify and explain the different types of communication, models, and theories, of communication,
Healthcare systems abroad : Her experience with healthcare systems abroad has made her realize how the Department of Health could improve its healthcare
Identify the cluster with the highest average income : identify the cluster with the highest average income. What is the average frequency of online backpack purchases?

Reviews

Write a Review

Operation Management Questions & Answers

  Book review - the goal

Operations Management is about a book review. Title of the book is "Goal". This book has been written by Dr. Eliyahu Goldartt. The book has been appreciated by many as one of those books which offers an insight into the operations and strategic capac..

  Operational plan in hospitality enterprise

Operational plan pertaining to a hospitality enterprise is given in detail in the solution. The operational plan is an important plan or preparation which gives guidelines regarding the role and responsibilities of each and every operation at all lev..

  Managing operations and information

Recognise the importance of a strategic approach to the development and deployment of organisational information systems. Demonstrate an understanding of the importance of databases and their integration to the organisation's overall information mana..

  A make-or-buy analysis

An analysis of the holding costs, including the appropriate annual holding cost rate.

  Evolution and contributor of operations management

Briefly explain Evolution and contributor of Operations management.

  Functions and responsibilities of an operations manager

A number of drivers of change have transformed the roles, functions and responsibilities of an operations manager over recent years. These drivers have not only been based on technological innovations but also on the need for organisations to develop..

  Compute the optimal order quantity

Compute the Optimal Order quantity of DVD players. Determine the appropriate reorder point.

  Relationship to operations practice in the organisation

Evaluate problems in operations and identify approaches to overcoming them. Critically evaluate operating plans and identify areas for improvement. Justify, implement and evaluate changes to operations in line with modern approaches.

  A make or buy analysis

Develop a report for Figi Fabricating that will address the question of whether the company should continue to purchase the part from the supplier or begin to produce the part itself.

  Prepare a staffing plan

Prepare a staffing plan showing the change of your unit from medical/surgical staffing to oncology staffing.

  Leadership styles in different organizations

Ccompare the effectiveness of different leadership styles in different organizations

  Risk management tools and models

Be able to understand the concept of risk, roles and responsibilities for risk management and risk management tools and models.

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +91-977-207-8620

Phone: +91-977-207-8620

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

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