Question: Consider the two capacity options for Arktec Manufacturing shown below. Suppose the company has identified the following three possible demand scenarios B!! Click the icon

Consider the two capacity options for Arktec
Consider the two capacity options for Arktec
Consider the two capacity options for Arktec
Consider the two capacity options for Arktec Manufacturing shown below. Suppose the company has identified the following three possible demand scenarios B!! Click the icon to view the capacity options table. Click the icon to view the demand scenarios table. a. The expected cost for Option 1 is $ 1183750 (Enter your response as a whole number.) The expected cost for Option 2 is $ 1570000. (Enter your response as a whole number.) Based on the given information, the best choice is Option 1. b. Suppose the lowest and highest demand levels are updated to 50,000 and 155,000, respectively The expected cost for Option 1 is now $ 1231000. (Enter your response as a whole number) The expected cost for Option 2 is now $ 1678000. (Enter your response as a whole number.) Based on the new information, the best choice is Option 1. M ULUI: 20.29%, 10.14 of 50 pts x Problem 4 Question Help c. Draw the decision tree for Arktec Manufacturing (using the initial information used in part a). When drawing your tree, assume that managers must select a capacity option before they know what the demand level will actually be. Choose the correct decision tree below.capacity option before they know what the demand level wil actually be. Choose the correct decision tree below. OA. Capacity Option Demand Outcome Capacity Option Demand Outcome Probability 30% 45% Forecast 40,000 fo 30% Forecast 40,000 65,000 140,000 r ced $930.000 Expected Cost $930.000 $1,105,000 $990,000 65,000 45% $1,105.000 $1,630,000 25% 140,000 25% 40,000 30% $1.630,000 40.000 30% 65,000 45% $1,390,000 65,000 140,000 45% 25% 9990.000 $1.390.000 $2.590.000 140.000 25% $2.590.000 140,000 25% $2.590.000 65,000 140.000 45% 25% $1,390,000 $2,590,000 O c. OD. Capacity Option Demand Outcome Probability by Cost Expected Forecast 40,000 30% Capacity Option Decision Demand Outcome $930.000 Forecast Probability 65,000 Expected Cost $930.000 $1,105,000 45% 40,000 65,000 $1,105,000 30% 45% 140.000 Option 2 25% 30% $1.630,000 $990,000 140,000 25% Option 1 $1,630,000 40.000 Option Option 2 65,000 45% $1.390.000 40.000 65.000 140.000 30% 45% $990,000 $1.390.000 $2,690.000 140,000 25% $2,590,000 25%

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