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 23%, 46%, and 31% respectively. Suppose that the profits for the expansion plans are as follows: The new plant expected outcomes are $110,000, $50,000, -$25,000, 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, $12,000, $6,000. The amount that the company must invest in each alternative is: new plant = $48,000, third shift = $15,100, small expansion = $5,700

a. The profit/loss (EMV) for the new plant is $ [ Select ] ["$-3,000", "$1,526", "-$7,450", "$6,950", "$-2,500"]

b. The profit/loss (EMV) for adding a third shift is $ [ Select ] ["$9,650", "-$2,500", "$11,500", "-$6,566", "$4,850"]

c. The profit/loss (EMV) for the small expansion is $ [ Select ] ["-$870", "-$940", "$2,300", "$5,130", "$10,500"]

d. Which of the expansion plans should the manager choose? [ Select ] ["New Plant", "either New Plant or Small Expansion based on the profit calculation", "3rd shift", "Small expansion"]

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: 42%, 32%, 26% (high, medium , low). What choice should the manager make and what is the EMV? [ Select ] ["New Plant based on a high demand of $110,000", "Small expansion; $6000.00", "3rd shift; $9,400.00", "New Plant; $7,500.00", "Small expansion based on the least amount of loss"]