Question: Microcomp is a U . S . - based manufacturer of personal computers. It is planning to build a new manufacturing and distribution facility in
Microcomp is a USbased manufacturer of personal computers. It is planning to build a new
manufacturing and distribution facility in either South Korea, China, Taiwan, the Philippines, or
Mexico. It will take approximately years to build the necessary infrastructure eg roads
construct the new facility, and put it into operation. The eventual cost of the facility will differ between
countries and will even vary within countries depending on the financial, labor, and political climate,
including monetary exchange rates. The company has estimated the facility cost in $ s in
each country under three different future economic and political climates, as follows:
Determine the best decision, using the following decision criteria.
a Minimin
b Minimax
c Hurwicz
d Equal likelihood
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