The owner of the Wynston Transport Company must decide among

Last updated: 1/25/2024

The owner of the Wynston Transport Company must decide among manufacturing 10 new transport trucks manufacturing 20 000 new electric scooters or leasing all their manufacturing 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 Stable 1800 1910 600 Material Costs Moderate Increase 350 820 1000 Transport ecision Scooters Leasing ermine the best decision using the Hurwicz criterion with a 0 2 O Decision Scooters based on 1438 max 940 1438 920 O Decision Transport based on 1640 min 1640 22 680 O Decision Leasing based on 680 max 1640 22 680 O Decision Stable based on 862 max 862 480 1860 Significant Increase 2500 450 700