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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?
A payoff a. is always measured in profit. b. is always measured in cost. c. exists for each pair of decision alternative and state of nature. d. exists for each state of nature.
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I have 3 questions involving linear programming, solving using both a) the enumerating the corner points method and b) the iso-profit line method.
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