Use the following data to answer questions 88-100. \[\begin{array}{l} \quad \quad \quad \quad \quad \quad \quad \quad \text { Expected Demand for Weston Gadgets, Inc. }\\ \begin{array} { | l | l | l | l | } \hline \text { Decision Alternative } & \text { Low 35\% } & \text { Medium 30\% } & \text { High 35\% } \\ \hline \text { Outsource } & \$ 16.00 \text { million } & \$ 28.00 \text { million } & \$ 66.00 \text { million } \\ \hline \text { Build capacity } & \$ 4.00 \text { million } & \$ 32.00 \text { million } & \$ 26.00 \text { million } \\ \hline \text { Do nothing } & \$ 9.00 \text { million } & \$ 18.00 \text { million } & \$ 66.00 \text { million } \\ \hline \end{array} \end{array}\] -Refer to the data on Expected Demand for Weston Gadgets,Inc.For the various demand scenarios and their associated probabilities,what is the maximum expected value?

A) $37.10 million B) $26.71 million C) $32.55 million D) $17.85 million A) $37.10 million B) $26.71 million C) $32.55 million D) $17.85 million

Use the following data to answer questions 88-100. \[\begin{array}{l} \quad \quad \quad \quad \quad \quad \quad \quad \text { Expected Demand for Weston Gadgets, Inc. }\\ \begin{array} { | l | l | l | l | } \hline \text { Decision Alternative } & \text { Low 35\% } & \text { Medium 30\% } & \text { High 35\% } \\ \hline \text { Outsource } & \$ 16.00 \text { million } & \$ 28.00 \text { million } & \$ 66.00 \text { million } \\ \hline \text { Build capacity } & \$ 4.00 \text { million } & \$ 32.00 \text { million } & \$ 26.00 \text { million } \\ \hline \text { Do nothing } & \$ 9.00 \text { million } & \$ 18.00 \text { million } & \$ 66.00 \text { million } \\ \hline \end{array} \end{array}\] -Refer to the data on Expected Demand for Weston Gadgets,Inc.Based on the Hurwicz criterion,what is the payoff for the option to build if you used the coefficient of realism of 0.6?

A) $46.00 million B) $20.80 million C) $43.20 million D) $33.20 million A) $46.00 million B) $20.80 million C) $43.20 million D) $33.20 million

Exam 29: Decision-Making Tools

Which of the following is a decision-making approach used when the probabilities of the states of nature are unknown,assumed as equal,and the different decision alternatives should be evaluated using the expected value of their payoffs?

Free

(Multiple Choice)

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Question 1

Correct Answer:

Verified

Revenues,profits,and income are examples of ______.

Free

(Multiple Choice)

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Question 2

Correct Answer:

Verified

Which of the following is a decision-making approach that attempts to find a compromise between the two extremes posed by the pessimistic maximin criterion and the optimistic maximax criterion by applying a certain percentage weight (α)to the most optimistic outcome,and (1-α)to the most pessimistic outcome.

Free

(Multiple Choice)

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Question 3

Correct Answer:

Verified

Decisions are made when the state of nature is known under which of the following scenarios?

(Multiple Choice)

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Question 4

Which of the following is FALSE about constructing and analyzing decision trees?

(Multiple Choice)

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Question 5

______ is the difference between the expected value of the decision with perfect information and the expected value of the decision without perfect information.

(Multiple Choice)

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Question 6

Mutually exhaustive events are events that ______.

(Multiple Choice)

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Question 7

ABC operates a factory in the United Kingdom.Because the company's existing factory doesn't have the capacity to meet the future demands,it is considering various options.Consider the payoff matrix that shows the payoff for each combination of decision and state of nature.Determine the best maximum payoff for low demand.

(Multiple Choice)

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Question 8

Evaluate the results to determine if the desired objectives were achieved in the established timeframe.This statement applies to which of the following steps involved in a systematic decision-making process?

(Multiple Choice)

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Question 9

Use the following data to answer questions 88-100. Expected Demand for Weston Gadgets, Inc. Decision Alternative Low 35\% Medium 30\% High 35\% Outsource \ 16.00 million \ 28.00 million \ 66.00 million Build capacity \ 4.00 million \ 32.00 million \ 26.00 million Do nothing \ 9.00 million \ 18.00 million \ 66.00 million -Refer to the data on Expected Demand for Weston Gadgets,Inc.For the various demand scenarios and their associated probabilities,what is the maximum expected value?

(Multiple Choice)

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Question 10

Use the following data to answer questions 88-100. Expected Demand for Weston Gadgets, Inc. Decision Alternative Low 35\% Medium 30\% High 35\% Outsource \ 16.00 million \ 28.00 million \ 66.00 million Build capacity \ 4.00 million \ 32.00 million \ 26.00 million Do nothing \ 9.00 million \ 18.00 million \ 66.00 million -Refer to the data on Expected Demand for Weston Gadgets,Inc.Based on the Hurwicz criterion,what is the payoff for the option to build if you used the coefficient of realism of 0.6?

(Multiple Choice)

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Question 11

Decisions are made when there are not only multiple states of nature,but they are also unpredictable and the decision maker cannot even make an educated guess about the chances,or probabilities,of their coming.This statement relates to which of the following scenarios?

(Multiple Choice)

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Question 12

Costs,losses,and expenditures are examples of ______.

(Multiple Choice)

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Question 13

Reduce the defect rate of a manufacturing process by 5% over the next 6 months.This example is an illustration of which of the following steps involved in a systematic decision-making process?

(Multiple Choice)

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Question 14

Use the following data to answer questions 77-87. -Refer to the data on Expected Demand for Acme Widgets.For the various demand scenarios,if you applied the Laplace criterion,what is the highest payoff?

(Multiple Choice)

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Question 15

Which of the following is a technique used for making sequential decisions that allow the decision maker to visually map each possible decision alternative to determine the best decision?

(Multiple Choice)

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Question 16

XYZ is a paint product manufacturer,and one of the plants is experiencing a substantial increase in demand.The future demand for the products could be low,medium,or high,with probabilities estimated to be 25%,50%,and 30%,respectively.The company wants to determine the financial impact associated with the three decision alternatives under the varying levels of demand.Given the following payoff matrix,determine which option has the lowest expected regret.The company should ______. $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\text { Demand }$ Decision Aternative Low (20\%) Medium (50\%) High (30\%) Subcontract additional capacity \ 7 million \ 40 million \ 70 m illion Build a new plant -\ 55 million \ 25 million \ 100 million Do nothing \ 15 million \ 30 illion \ 85 million

(Multiple Choice)

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Question 17

The outcomes that result given the actual decision made and the state of nature that occurs are referred to as ______.

(Multiple Choice)

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Question 18

______ is the weighted average of the values of all possible outcomes of the decision,or the average payoff that would be realized if the decision were to be repeated many times.

(Multiple Choice)

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Question 19

In Hurwicz criterion,the coefficient α is often called the ______.

(Multiple Choice)

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Question 20

Showing 1 - 20 of 100

Exam 29: Decision-Making Tools

Which of the following is a decision-making approach used when the probabilities of the states of nature are unknown,assumed as equal,and the different decision alternatives should be evaluated using the expected value of their payoffs?

Revenues,profits,and income are examples of ______.

Decisions are made when the state of nature is known under which of the following scenarios?

Which of the following is FALSE about constructing and analyzing decision trees?

______ is the difference between the expected value of the decision with perfect information and the expected value of the decision without perfect information.

Mutually exhaustive events are events that ______.

Evaluate the results to determine if the desired objectives were achieved in the established timeframe.This statement applies to which of the following steps involved in a systematic decision-making process?

Decisions are made when there are not only multiple states of nature,but they are also unpredictable and the decision maker cannot even make an educated guess about the chances,or probabilities,of their coming.This statement relates to which of the following scenarios?

Costs,losses,and expenditures are examples of ______.

Reduce the defect rate of a manufacturing process by 5% over the next 6 months.This example is an illustration of which of the following steps involved in a systematic decision-making process?

Use the following data to answer questions 77-87. -Refer to the data on Expected Demand for Acme Widgets.For the various demand scenarios,if you applied the Laplace criterion,what is the highest payoff?

Which of the following is a technique used for making sequential decisions that allow the decision maker to visually map each possible decision alternative to determine the best decision?

The outcomes that result given the actual decision made and the state of nature that occurs are referred to as ______.

______ is the weighted average of the values of all possible outcomes of the decision,or the average payoff that would be realized if the decision were to be repeated many times.

In Hurwicz criterion,the coefficient α is often called the ______.

Introduction to Managing Global Operations and Supply Chains

Operations and Supply Chain Strategies

Project Management

Supplement: Project Management

Product and Service Innovations

Supplement: Reliability

Managing for Quality

Quality Improvement and Control Tools

Capacity Planning

Supply Chain Design and Location Planning

Process Design and Layout Planning

Supplement: Tools for Analyzing, Designing, and Selecting Processes and Layouts

Supplier Management

Logistics Management

Demand Management and Customer Service

Demand Forecasting Methods

Lean Operations and Supply Chains

Inventory Management

Inventory Control Models

Sales and Operations Planning

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Supplement: Capacity Requirements Planning, MRP II, ERP, and DRP

Detailed Scheduling

Linear Programming

The Transportation Models

Waiting Line Models

Simulation

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