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,if you applied the Laplace criterion,what is the lowest payoff?

A) $46.00 million B) $20.67 million C) $43.20 million D) $33.20 million A) $46.00 million B) $20.67 million C) $43.20 million D) $33.20 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.For the various demand scenarios,if you applied the Laplace criterion,what is the lowest payoff?

A) $39.33 million B) $34.00 million C) $31.33 million D) $43.33 million A) $39.33 million B) $34.00 million C) $31.33 million D) $43.33 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.For the various demand scenarios,if you applied the Laplace criterion,what is the payoff for the "build capacity" option?

A) $36.67 million B) $20.67 million C) $33.20 million D) $41.55 million A) $36.67 million B) $20.67 million C) $33.20 million D) $41.55 million

Exam 29: Decision-Making Tools

Use the following data to answer questions 77-87. -Refer to the data on Expected Demand for Acme Widgets.Based on the Hurwicz criterion,what is the payoff for the "build capacity" option if you used the coefficient of realism of 0.6?

(Multiple Choice)

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Question 81

Which of the following is FALSE about the steps involved in a systematic decision-making process?

(Multiple Choice)

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Question 82

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 alternative using the Laplace criterion solution.Assume equal likelihood for low demand and high demand.

(Multiple Choice)

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Question 83

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,if you applied the Laplace criterion,what is the lowest payoff?

(Multiple Choice)

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Question 84

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 alternative using the maximin criterion.

(Multiple Choice)

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Question 85

After drawing a decision tree,it is analyzed from ______.

(Multiple Choice)

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Question 86

In decision trees,the decision tree criterion is to choose the initial decision that has ______.

(Multiple Choice)

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Question 87

Using a payoff matrix to compute the expected values of a decision is appropriate as long as ______ decision(s)is/are to be made at a given point in time.

(Multiple Choice)

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Question 88

In a decision tree,a circle node represents a(n)______.

(Multiple Choice)

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Question 89

Weigh the cost and time related to selecting and implementing each alternative.This statement applies to which of the following steps involved in a systematic decision-making process?

(Multiple Choice)

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Question 90

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,compute the expected regret for the option of subcontracting additional capacity. $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\text { Demand }$ 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 91

Use the following data to answer questions 77-87. -Refer to the data on Expected Demand for Acme Widgets.For the various demand scenarios and their associated probabilities,the option to outsource has an expected value of ______.

(Multiple Choice)

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Question 92

The values the decision-maker places on each combination of actual decisions and states of nature are referred to as ______.

(Multiple Choice)

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Question 93

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,if you applied the Laplace criterion,what is the lowest payoff?

(Multiple Choice)

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Question 94

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,if you applied the Laplace criterion,what is the payoff for the "build capacity" option?

(Multiple Choice)

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Question 95

Any decision-making situation is comprised of ______ elements.

(Multiple Choice)

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Question 96

______ is the difference between the best payoff for a given state of nature and the payoff associated with the actual decision made for that particular state of nature.

(Multiple Choice)

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Question 97

Which of the following statements is FALSE about systematic decision-making process?

(Multiple Choice)

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Question 98

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 alternative using the minimax regret criterion.

(Multiple Choice)

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Question 99

The risk of making the wrong decision is higher when the degree of uncertainty is ______.

(Multiple Choice)

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Question 100

Exam 29: Decision-Making Tools

Use the following data to answer questions 77-87. -Refer to the data on Expected Demand for Acme Widgets.Based on the Hurwicz criterion,what is the payoff for the "build capacity" option if you used the coefficient of realism of 0.6?

Which of the following is FALSE about the steps involved in a systematic decision-making process?

After drawing a decision tree,it is analyzed from ______.

In decision trees,the decision tree criterion is to choose the initial decision that has ______.

Using a payoff matrix to compute the expected values of a decision is appropriate as long as ______ decision(s)is/are to be made at a given point in time.

In a decision tree,a circle node represents a(n)______.

Weigh the cost and time related to selecting and implementing each alternative.This statement applies to 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 and their associated probabilities,the option to outsource has an expected value of ______.

The values the decision-maker places on each combination of actual decisions and states of nature are referred to as ______.

Any decision-making situation is comprised of ______ elements.

______ is the difference between the best payoff for a given state of nature and the payoff associated with the actual decision made for that particular state of nature.

Which of the following statements is FALSE about systematic decision-making process?

The risk of making the wrong decision is higher when the degree of uncertainty is ______.

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

Master Scheduling and Material Requirements Planning

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

Detailed Scheduling

Linear Programming

The Transportation Models

Waiting Line Models

Simulation

Learning Curves

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