Question: Example 3.1: A major imaging center is not able to meet the increased demand from patients for MRIs. The administration is willing to explore the

Example 3.1: A major imaging center is not able

Example 3.1: A major imaging center is not able to meet the increased demand from patients for MRIs. The administration is willing to explore the possibilities by evaluating such alternatives as adding one or two additional units or out sourcing to other image centers and earning a commission of $30.00 per MRI. A feasibility analysis showed that three major demand chunks could occur in the future, summarized as 500, 750 and 1000 additional MRI requests. The financial analysis of the potential business summarizes profits/losses under additional MRI demand chunks in a payoff table 500 1000 Alternatives 750 Cases Cases Cases Buy One MRI Unit -15* 200 Buy Two MRI Units -150 725 Outsource 22.5 300 100 15 40 Example 3.1: A major imaging center is not able to meet the increased demand from patients for MRIs. The administration is willing to explore the possibilities by evaluating such alternatives as adding one or two additional units or out sourcing to other image centers and earning a commission of $30.00 per MRI. A feasibility analysis showed that three major demand chunks could occur in the future, summarized as 500, 750 and 1000 additional MRI requests. The financial analysis of the potential business summarizes profits/losses under additional MRI demand chunks in a payoff table 500 1000 Alternatives 750 Cases Cases Cases Buy One MRI Unit -15* 200 Buy Two MRI Units -150 725 Outsource 22.5 300 100 15 40

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