Question: The engineer has identified three acceptable alternatives to handle the increased workload. One alternative is to replace present machine (A), the second is to hire

The engineer has identified three acceptable

The engineer has identified three acceptable alternatives to handle the increased workload. One alternative is to replace present machine (A), the second is to hire two new machines (B), and the third is to redesign current machine (C) so that the production can be continued with little additional effort. The estimated cost for various options and machines are shown in the following Table 05. Table Q5 Machines/Probabilities Alternatives LOW (0.10) Moderate (0.60) High (0.30) A 50 60 85 B 60 60 60 40 50 90 a) Explain what decision would be appropriate using each of the following criteria such as Maximin, Maximax, Minimax regret, and Laplace. (10 marks) b) Discuss the acceptable alternatives by using a decision tree and an EPVI value. (10 marks)

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