QUESTION $1$

$[25$ MARKS$]$

Twahafa Catering Services $($hereafter TCS$)$ runs a cafeteria situated on the ground floor of a large corporate office block in Windhoek. Each of the five floors of the building is occupied, and there are in total $1240$ employees. TCS sells lunches and snacks in the cafeteria. The lunch menu is freshly prepared each morning, and TCS must decide how many meals to make daily. As the office block is located in the city center, there are several other places around the bullding where staff can buy their lunch. The level of demand for lunches in the cafeteria is uncertain. TCS has analysed daily sales over the previous six months and established four possible demand levels and their associated probabilities. TCS produced the following payoff table to show the daily profits which could be earned from the lunch sales in the cafeteria:

$\backslash$table$[[,$Supply Level$],[$Demand Level,Probability,$450,620,755,960],[,\%,$N$$,$N$$,$N$$,$N$$],[450,15,11700,9800,8100,7400],[620,30,11700,16120,13950,12900],[775,40,11700,16120,20150,17850],[960,15,11700,16120,20150,24960]]$

$\backslash$table$[[$REQUIRED: Determine the optimal decision under each of the following decision criteria and show the level of the supply with the corresponding profit or loss,MARKS$],[$a$),$Maximax,$2],[$b$),$Maximin,$2],[$c$),$Minimax regret,$10],[$d$),$Expected Monetary Value $($EMV$),2],[$e$),$Expected Value of Perfect Information $($EVP$1),9],[$TOTAL$,25]]$