Trey Whitmore, Operations Manager at National Consumers, Inc

Multiple Choice

Trey Whitmore, Operations Manager at National Consumers, Inc.(NCI) , is evaluating alternatives for increasing capacity at NCI's Fountain Hill plant.He has identified four alternatives, and has constructed the following payoff table which shows payoffs (in $1,000,000's) for the three possible levels of market demand: If Trey uses the Hurwicz criterion with alpha = 0.4, the appropriate alternative would be: ___.

A) lease new equipment
B) purchase new equipment
C) add third shift
D) do nothing
E) do everything