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Company must decide how many lots of chocolate muffin premix to order for its three stores. Information on pricing, sales, and inventory costs has led to the following payoff table, in thousands. Demand Order size Low medium High 1 lot 12 15 15 2 lots 9 25 35 3 lots 6 35 60
1-what decision should be made by the optimist?
2-what decision should be made by the conservative?
3-what decision should be made using minimal regret? Show the regret table.
4-assume that the payoff table provides cost rather than profit payoffs. What is the recommended decision using optimistic, conservative, and minimal regret approaches?
What does Just in Time Manufacturing mean and how does it relate to manufacturing operations?
Maxwell Manufacturing makes two models of felt tip marking pens. Requirements for each lot of pens are given below. Fliptop Model Tiptop Model Available Plastic 3 4
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ABC Aircraft uses 2,000 drill bits annually. Each drill bit costs $50 and each order ABC places costs $30. The annual carrying rate is 20% of unit cost. ABC has contracted with the
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