1) An operations manager's staff has compiled the information below for four manufacturing alternatives (E, F, G, and H) that vary by production technology and the capacity of the machinery. All choices enable the same level of total production and have the same lifetime. The four states of nature represent four levels of consumer acceptance of the firm's products. Values in the table are net present value of future profits in millions of dollars. Forecasts indicate that there is a 0.1 probability of acceptance level 1, 0.2 chance of acceptance level 2, 0.4 chance of acceptance level 3, and 0.3 change of acceptance level 4.

	States of Nature
	1	2	3	4
Alternative E	50	50	70	60
Alternative F	30	50	80	130
Alternative G	70	80	70	60
Alternative H	-140	-10	150	220

Using the criterion of expected monetary value, which production alternative should be chosen?

2) There are three work centers (A, B, and C) behind the financial aid counter at a nearby university. They can each fit into any of three office spaces (1, 2, and 3) off the corridor behind the desk. There is no student contact in these areas, only workers. The distance 1-2 is 20 feet, 2-3 is 30 feet, and 1-3 is 50 feet. The matrix of work (trips per day) at the three centers are shown in the following table. Remember that each trip must be a round-trip (from 1 to 2 and back, for example).

	A	B	C
A	--	20	0
B	45	--	25
C	60	0	--

(a) How many possible assignments are there? List them.

(b) Calculate the total distance traveled in each of these assignments.

(c) Which assignment minimizes distance traveled?