72 Adding personnel, or building or using inventory are considerations in: 02. 01. intermediate-range capacity planning long-range capacity planning 03. flexible-range capacity planning 04. none of the above 05. short-range capacity planning 78 Referring to Scenario 3 above, your director wants to increase the probability of moderate market demand to 0.5, without changing any other probabilities (i.e., he wants to keep the probability of strong market demand at 0.6). What should you do? Scenario 3 Afirm is weighing three capacity alternatives small, medium and large job shop. Whatever capacity choice is made, the market demand for the firm's product can be "moderate" or "strong. The probability of moderate market demand is estimated to be 0.4 the probability of strong market demand is estimated to be 0.6. The anticipated profits are as follows: a Small job shop moderate market demand = $24,000, strong market demand = $54,000 b. Medium yob shop, moderate market demand $20,000, strong market demand $84,000 6. Large job shop moderate market demand = -$2,000, strong market demand = 596,000 Minimized View 01. O recalculate the EMV for the Medium job shop and report the revised (in any) recommended decision 02. recalculate the EMV for the Medium job shop and report the revised (in any) recommended decision 03. collectively recalculate all EMVs and report the revised (in any) recommended decision 04. politely inform your director that this is not possible; the sum of all probabilities for market demand needs to equal 1 recalculate the EMV for the Small job shop and report the revised (in any) recommended decision 05. 72 Adding personnel, or building or using inventory are considerations in: 02. 01. intermediate-range capacity planning long-range capacity planning 03. flexible-range capacity planning 04. none of the above 05. short-range capacity planning 78 Referring to Scenario 3 above, your director wants to increase the probability of moderate market demand to 0.5, without changing any other probabilities (i.e., he wants to keep the probability of strong market demand at 0.6). What should you do? Scenario 3 Afirm is weighing three capacity alternatives small, medium and large job shop. Whatever capacity choice is made, the market demand for the firm's product can be "moderate" or "strong. The probability of moderate market demand is estimated to be 0.4 the probability of strong market demand is estimated to be 0.6. The anticipated profits are as follows: a Small job shop moderate market demand = $24,000, strong market demand = $54,000 b. Medium yob shop, moderate market demand $20,000, strong market demand $84,000 6. Large job shop moderate market demand = -$2,000, strong market demand = 596,000 Minimized View 01. O recalculate the EMV for the Medium job shop and report the revised (in any) recommended decision 02. recalculate the EMV for the Medium job shop and report the revised (in any) recommended decision 03. collectively recalculate all EMVs and report the revised (in any) recommended decision 04. politely inform your director that this is not possible; the sum of all probabilities for market demand needs to equal 1 recalculate the EMV for the Small job shop and report the revised (in any) recommended decision 05