Question 4

Foxcomp, an electronics and computer manufacturer with a global supply chain, wants to add a new supplier for some of its component parts, and the suppliers it's considering are in Taiwan, India, Thailand, the Philippines. As part of its risk management program, Foxcomp wants to assess the possible impact of a supplier shutdown in the event of a natural disaster, such a flood, fire, tsunami, or an earthquake. The following payoff table summarizes the losses (in millions of dollars) for an extended supplier shutdown, given different levels of event severity and recovery in each country.

	Event Severity
	Low	Moderate	Normal
Taiwan	$15	$19	$23
India	7	10	20
Thailand	12	15	19
Philippines	6	9	25
probability	0.42	0.35	0.23

1. Determine the best decision using each of the following criteria.

1. Minimim
2. Minimax
3. Minimax Regret (You need to create an opportunity loss table)

2. Determine the best decision using expected value.
3. Determine the expected value of perfect information (EVPI).