# Question

Deborah Kellogg buys Breathalyzer test sets for the Denver Police Department. The quality of the test sets from her two suppliers is indicated in the following table:

For example, the probability of getting a batch of tests that are 1% defective from Loomba Technology is .70. Because Kellogg orders 10,000 tests per order, this would mean that there is a .7 probability of getting 100 defective tests out of the 10,000 tests if Loomba Technology is used to fill the order. A defective Breathalyzer test set can be repaired for $0.50. Although the quality of the test sets of the second supplier, Stewart-Douglas Enterprises, is lower, it will sell an order of 10,000 test sets for $37 less than Loomba.

(a) Develop a decision tree.

(b) Which supplier should Kellogguse?

For example, the probability of getting a batch of tests that are 1% defective from Loomba Technology is .70. Because Kellogg orders 10,000 tests per order, this would mean that there is a .7 probability of getting 100 defective tests out of the 10,000 tests if Loomba Technology is used to fill the order. A defective Breathalyzer test set can be repaired for $0.50. Although the quality of the test sets of the second supplier, Stewart-Douglas Enterprises, is lower, it will sell an order of 10,000 test sets for $37 less than Loomba.

(a) Develop a decision tree.

(b) Which supplier should Kellogguse?

## Answer to relevant Questions

Deborah Hollwager, a concessionaire for the Des Moines ballpark, has developed a table of conditional values for the various alternatives (stocking decision) and states of nature (size of crowd):If the probabilities ...Jeff Kaufmann’s machine shop sells a variety of machines for job shops. A customer wants to purchase a model XPO2 drilling machine from Jeff’s store. The model XPO2 sells for $180,000, but Jeff is out of XPO2s. The ...Define the feasible region of a graphical LP problem. What is a feasible solution?Compare how the corner-point and iso-profit line methods work for solving graphical problems.The Lauren Shur Tub Company manufactures two lines of bathtubs, called model A and model B. Every tub requires blending a certain amount of steel and zinc; the company has available a total of 25,000 lb of steel and 6,000 lb ...Post your question

0