Suppose a distribution center is considering three options for expansion. The first one is to expand into a new plant, the second to add on third-shift to the daily schedule, and third, a small expansion to the existing facility. There are three possibilities for demand. These are high, medium, and low having probabilities of 40%, 33%, and 27% respectively. Suppose that the profits for the expansion plans are as follows: The new plant expected outcomes are $110,000, $50,000, -$15,000, the third shift consideration would result in outcomes of $40,000, $20,000, $-5,000 and the small expansion choice would in the following dollar amounts $15,000, $13,000, -$1,500. The amount that the company must invest in each alternative is: new plant = $48,000, third shift = $15,100, small expansion = $8,700

a. The profit/loss (EMV) for the new plant is $ [ Select ] ["$-2,500", "$-3,000", "$2,700", "$8,450", "$6,950"]

b. The profit/loss (EMV) for adding a third shift is $ [ Select ] ["$4,000", "$7,566", "$6,150", "$-2,500", "$9,650"]

c. The profit/loss (EMV) for the small expansion is $ [ Select ] ["$10,500", "$2,300", "$1,185", "-$870", "$130"]

d. Which of the expansion plans should the manager choose? [ Select ] ["Adding Third Shift", "Small Expansion", "either New Plant or Small Expansion based on the profit calculation", "New Plant"]

e. What if an outside consultant was hired by the organization and the probabilities were re-evaluated as a result of better information. The results of the research/feedback are now: 30%, 37%, 33% (high, medium , low). What choice should the manager make and what is the EMV? [ Select ] ["Medium Expansion; $40,000 based on high demand", "Large Expansion based on a high demand of $110,000", "Small expansion based on the least amount of cost at $1,370", "Large Expansion based on an EMV of $3,740", "Medium based on an EMV of $2,650"]