Management is also analyzing overage and underage costs. Overage costs are incurred when quantity produced exceeds demand, leading to wastage. Underage costs are stockout (or shortage) costs: the cost of lost contribution to profit when demand exceeds supply. Suppose the analysis resulted in the following payoff table for the bakery. Payoffs are costs in dollars.

	Low Demand	Medium Demand	High Demand
Light Production	360	790	1,270
Moderate Production	940	280	960
Heavy Production	1,220	760	340

Determine the best decision alternative and its associated payoff using each of the following criteria:

1. the optimistic criterion Best Payoff =$=$ Correct Decision: Select an answer Light Moderate Heavy Light or Moderate Light or Heavy Moderate or Heavy Indifferent Light and Moderate Light and Heavy Moderate and Heavy Correct
6. the pessimistic/conservative criterion Best Payoff =$=$ Correct Decision: Select an answer Light Moderate Heavy Light or Moderate Light or Heavy Moderate or Heavy Indifferent Light and Moderate Light and Heavy Moderate and Heavy Correct
11. the equally likely criterion Best Average Payoff =$=$ Decision: Select an answer Light Moderate Heavy Light or Moderate Light or Heavy Moderate or Heavy Indifferent Light and Moderate Light and Heavy Moderate and Heavy Correct
16. the realism criterion with = 0.7 Best Weighted Payoff =$=$ Decision: Select an answer Light Moderate Heavy Light or Moderate Light or Heavy Moderate or Heavy Indifferent Light and Moderate Light and Heavy Moderate and Heavy Correct
21. the minimax regret criterion Minimax Regret =$=$ Decision: Select an answer Light Moderate Heavy Light or Moderate Light or Heavy Moderate or Heavy Indifferent Light and Moderate Light and Heavy Moderate and Heavy