QUESTION 21 The model below pertains to this question and 7 following questions. A firm developed the following (profit) payoff table below for order lot sizing versus market demand for a single-period stocking model. The firm's business model is manufacture to a forecast and the probabilities are the result of a frequency and relative frequency analysis using multiple periods of data. B D E 3 4 Payoff Table 7 Small Lot Medium Lot Large Lot Probability High Demand 100 300 600 0.25 Moderate Demand 100 140 0 0.45 Low Demand 100 -50 -250 03 8 9 10 11 12 13 Loss Table High Demand Moderate Demand Low Demand 14 15 16 17 Small Lot Medium Lot Large Lot 18 What is the likelihood (probability) of generating a profit if a Medium Lotis chosen? Enter your answer as a two-decimal-place number. (NOT as a percentage.) 32 QUESTION 22 What is the decision based on the aggresive (optimistic) decision rule? A. Small Lot OB Medium Lot O C. Large Lot OD. Indeterminate QUESTION 25 3 points (E) Assume that the firm changes its business model to a "make to order" for production planning. Since orders are placed in advance by their customers via multi-period contracts (blanket purchase orders with release quantities specified), the demand is known exactly. Management can now determine an optimal lot size for each period. What is the expected value of with this perfect information? Enter your answer rounded to a whole number, if applicable. QUESTION 26 3 points (Ext Since some risk is transferred to the customer with this business model change, customers are asking for a discount Management needs to determine the upper bound of the discount before entering into negotiations, so... What is the value of this perfect information? Enter your answer rounded to a whole number, if applicable. QUESTION 27 The Loss Table is not complete. Help the team complete it. What is the numeric value of Cell C157 QUESTION 28 The Loss Table is not complete. Help the team complete it. What is the nurneric value of Cell E17