The owner of the Adelaide Australia Computer Hardware

Last updated: 1/25/2024

The owner of the Adelaide Australia Computer Hardware Company must decide among building 100 servers building 5000 hard drives or leasing all their equipment to another company The profit that will result from each alternative will be determined by whether material costs remain stable increase moderately or increase significantly In the payoff table below the estimated profits losses are given in thousands Material Costs sion Stable Servers Hard Drives Leasing mine the best decision using the Maximin decision criterion 1830 950 Moderate Increase 1030 2150 1100 550 Decision Leasing based on 2400 min 190 950 2400 Decision Hard Drives based on 950 max 190 950 2400 Decision Stable based on 950 max 950 550 2400 Decision Servers based on 190 min 190 950 550 Significant Increase 190 1150 2400