Do: Chapter 4 Homework: Technology and Operations Management 5. 6. Spreadsheet Edwards Machine Tools needs to purchase a new machine. The basic model is slower but costs less, whereas the advanced model is faster but costs more. Profitability will depend on future demand. The following table presents an estimate of profits over the next three years. E Decision alternative Basic model Low Decision Basic model Advanced model $80,000 $30,000 Fill in the table below for maximum and minimum profit payoffs under each model. Round your answers to the nearest dollar. Advanced model Opportunity Loss Matrix Decision alternative Basic model Advanced model Maximum $ $ Minimum $ $ $ $ Calculate the amounts foregone by not adopting the optimal course of action for each possible demand level. Determine the maximum opportunity cost for each model. Fill in the table below. If your answer is zero, enter "0". Round your answers to the nearest dollar. Low Future events Medium Demand Volume $ $ -Select- High Medium $100,000 $110,000 $ $ High $160,000 $195,000 Maximum $ $ Given the uncertainty associated with the demand volume, and no other information to work with, what decision would you make? The aggressive strategy (maximax) is to choose the The conservative strategy (maximin) is to choose the -Select- The opportunity loss strategy is to choose the -Select-

0: Chapter 4 Homework: Technology and Operations Management 1. 5. spresoritere 5. 6 Profitability will depend on future demand. The following table presents an estimate of profits over the next three years Fill in the table below for maximum and minimum profit payoffs under each model, Round your answers to the nearest dollar. model. Fll in the table below, If your answer is zero, enter \" 0 \", Aound your answers to the nearest dollar. Given the uncertainty associated with the demand volume, and no other informatien to work wht, what decision would you make? The aggressive strategr (maximax) is to cheose the The conservative strategy (maximin) is to choose the The opportinity loss strategy is to choose the