Leevi Starch, an apparel company with a global supply chain, is adding a new supplier for several new styles of its denim jeans, and the suppliers it’s considering are in China, India, the Philippines, Brazil, and Mexico. A major factor in the company’s decision is transportation and shipping costs, which are dependent on future oil prices. The following payoff table summarizes the total monthly costs (in $100,000s), including manufacturing and shipping costs for the suppliers in each of the countries given the future state of oil prices.

Determine the best decision using each of the following criteria.
a. Minimin
b. Minimax
c. Equal likelihood
d. Minimaxregret

  • CreatedApril 10, 2014
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