Given the following conditional value table, determine the appropriate decision under uncertainty using maximin.

	STATES OF NATURE
ALTERNATIVES	VERY FAVORABLE MARKET	AVERAGE MARKET	UNFAVORABLE MARKET
Build new plant	$\$350,000$	$\$240,000$	-$\$300,000$
Subcontract	$\$180,000$	$\$90,000$	-$\$20,000$
Overtime	$\$110,000$	$\$60,000$	-$\$10,000$
Do nothing	$\$0$	$\$0$	$\$0$

Andrew Thomas, a sandwich vendor at Hard Rock Cafe's annual Rockfest, created a table of conditional values for the various alternatives (stocking decision) and states of nature (size of crowd):

The probabilities associated with the states of nature are $0.3$ for a big demand, $0.5$ for an average demand, and $0.2$ for a small demand.

Determine the alternative that provides Andrew the greatest expected monetary value (EMV).

The fire department has a number of failures with its oxygen masks and is evaluating the possibility of outsourcing preventive maintenance to the manufacturer. Because of the risk associated with a failure, the cost of each failure is estimated at $\$ 2,000$. The current maintenance policy (with station employees performing maintenance) has yielded the following history:

This manufacturer will guarantee repairs on any and all failures as part of a service contract. The cost of this service is $\$ 5,000$ per year.

What is the cost of the current maintenance policy?

What are the expected number of yearly breakdowns for the power generator at Orlando Utilities that has exhibited the following data over the past 20 years?

The fire department has a number of failures with its oxygen masks and is evaluating the possibility of outsourcing preventive maintenance to the manufacturer. Because of the risk associated with a failure, the cost of each failure is estimated at $2,000. The current maintenance policy (with station employees performing maintenance) has yielded the following history:

This manufacturer will guarantee repairs on any and all failures as part of a service contract. The cost of this service is$5,000 per year. What is the more economical policy?

Andrew Thomas, a sandwich vendor at Hard Rock Cafe's annual Rockfest, created a table of conditional values for the various alternatives (stocking decision) and states of nature (size of crowd):

The probabilities associated with the states of nature are $0.3$ for a big demand, $0.5$ for an average demand, and $0.2$ for a small demand.

Compute the expected value of perfect information (EVPI).

William Beville's computer training school, in Richmond, stocks workbooks with the following characteristics: Demand D = 19,500 units/year Ordering cost S = $25 order Holding cost H =$4/unit/year What are the annual holding costs for the workbooks?

William Beville's computer training school, in Richmond, stocks workbooks with the following characteristics: Demand D = 19,500 units/year Ordering cost S = $25 order Holding cost H =$4/unit/year What are the annual ordering costs?

William Beville's computer training school, in Richmond, stocks workbooks with the following characteristics: Demand D = 19,500 units/year Ordering cost S = $25 order Holding cost H =$4/unit/year Calculate the EOQ for the workbooks.

What are the expected number of yearly breakdowns for the power generator at Orlando Utilities that has exhibited the following data over the past 20 years?

William Beville's computer training school, in Richmond, stocks workbooks with the following characteristics:

Demand $D=$ $19.500$ units/year

Ordering cost $S=\$ 25 /$ order

Holding cost $H=\$ 4 /$ unit/year

Calculate the EOQ for the workbooks.

Lindsay Electronics, a small manufacturer of electronic research equipment, has approximately 7,000 items in its inventory and has hired Joan Blasco-Paul to manage its inventory. Joan has determined that 10% of the items in inventory are A items, 35% are B items, and 55$ are C items. She would like to set up a system in which all A items are counted monthly (every 20 working days), all B items are counted quarterly (every 60 working days), and all C items are counted semiannually (every 120 working days). How many items need to be counted each day?

What is the overall reliability that bank loans will be processed accurately if each of the 5 clerks shown in the chart has the reliability shown?

Hint: The three paths are done in parallel, followed by an additional independent step.

Jean-Marie Bourjolly's restaurant has the following inventory items that it orders on a weekly basis:

Which are C items?